Benchmarks turn lower erasing initial gains

Indian equity benchmarks failed to hold its gains and entered into red terrain in morning trades, as traders remained on sidelines ahead of outcome of US President Donald Trump and Prime Minister Narendra Modi meet, seeking to boost US-Indian relations despite differences over trade, the Paris climate accord and immigration. Investors also stayed cautious ahead of F&O expiry due this week and GST rollout lined up for June 30 midnight. However, losses remained capped as some support came with positive global leads with Asian counters trading mostly in green at this point of time. The Japanese market was trading with traction, as a weaker yen boosted shares of exporters. The US markets ended mostly in green in last session.

Back home, mining stocks remained buzzing, as the world’s biggest coal users China, the United States and India have boosted coal mining in 2017, in an abrupt departure from last year’s record global decline for the heavily polluting fuel and a setback to efforts to rein in climate change emissions. The production through May is up by at least 121 million tons, or 6 per cent, for the three countries compared to the same period last year. Banking stocks also remained in focus after the Reserve Bank of India (RBI) has directed banks to keep higher provisions against all cases referred for bankruptcy proceedings.

The BSE Sensex is currently trading at 31095.57, down by 42.64 points or 0.14% after trading in a range of 31047.94 and 31294.96. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.85%, while Small cap index down by 0.89%.

The few gaining sectoral indices on the BSE were Telecom up by 0.54%, FMCG up by 0.52% and Healthcare up by 0.03%, while PSU down by 1.87%, Utilities down by 1.11%, Oil & Gas down by 1.09%, Power down by 1.01% and Realty down by 0.98% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.29%, Adani Ports up by 0.90%, HDFC Bank up by 0.86%, Bharti Airtel up by 0.75% and Mahindra & Mahindra up by 0.65%. On the flip side, SBI down by 2.72%, NTPC down by 1.74%, ICICI Bank down by 1.72%, Axis Bank down by 1.69% and Infosys down by 1.35% were the top losers.

Meanwhile, allaying fears over whether the prices of essential commodities would go up post implementation of Goods and Services Tax (GST), the Union Minister Nirmala Sitharaman has said that no fresh rates would be imposed on those goods which already come under tax ambit. She added that there is no separate explanation to public and another for traders, it is all the same and the price of essential commodities will not increase post GST.

The Commerce and Industries Minister said that rate fixed in GST is Revenue Neutral Rate which means suppose if there is a tax for a particular product, it comes under GST. If a new tax rate is fixed, it is comparatively less to the existing structure. So, the price of essential commodities will not rise. She also clarified that no additional taxes are imposed on products which already come under the tax structure. On the conferences conducted for the benefit of traders’ community, she said, in every conference an official equal to the rank of Central Excise Commissioner takes part to address the queries raised by the traders.

Noting that the traders can also get trained at various offices of Chartered Accountants, Sitharaman said the Government also conducts conferences on GST in partnership with various Chambers of Commerce. She further said that those officials who had undergone training on GST are also appointed in every district (of the State) for the benefit of traders. Besides, the government has said that the GST could add two percentage points to economic growth. It is termed as India’s most ambitious tax reform, creates a single economic zone with common indirect taxes.

The CNX Nifty is currently trading at 9550.60, down by 24.35 points or 0.25% after trading in a range of 9535.05 and 9615.40. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 1.70%, ITC up by 1.25%, Adani Ports up by 1.03%, HDFC Bank up by 0.85% and Bharti Airtel up by 0.72%. On the flip side, Bank of Baroda down by 4.01%, BPCL down by 3.08%, Indiabulls Housing down by 3.06%, SBI down by 2.84% and ICICI Bank down by 1.80% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 5.87 points or 0.25% to 2,394.53, Hang Seng rose 22.66 points or 0.09% to 25,894.55 and Nikkei 225 was up by 63.43 points or 0.31% to 20,216.78. On the flip side, Taiwan Weighted decreased 3.01 points or 0.03% to 10,510.95 and Shanghai Composite was down by 2.78 points or 0.09% to 3,182.66.