Markets off day's low

After hitting fresh intraday low, the key benchmark indices staged some recovery in late afternoon session on account of buying in Realty, IT, Consumer Durables and Metal counters. Traders get some solace with the Finance Ministry's statement that trading in about a dozen of the 331 shell companies whose shares have been suspended by market regulator SEBI, is expected to resume in one week’s time. Besides, National Stock Exchange (NSE) has significantly lowered transaction charges in currency futures to bring in more liquidity in derivatives, provided some relief to the investors. However, investors remained cautious following weakness in global markets after a flareup in geopolitical tensions following North Korea’s nuclear tests. Meanwhile, India’s farm sector received foreign direct investment worth Rs 354.77 crore during April-May this year.

On the global front, European markets were trading in red as geopolitical concerns restrained investor sentiments. The issues between North Korea and the United States have soared to an unprecedented level after President Donald Trump warned that the former would be met with fire and fury if it continued its threats. Back home, in scrip specific development, MSR India touched the roof on successfully launching its product ‘Dr. Copper’ in Karnataka at a Grand Launch event in Bangalore on August 6, 2017. Dr. Copper after a long R&D of 4 years was launched in Hyderabad market first in the month of May, 2017.

The BSE Sensex is currently trading at 31874.69, down by 139.50 points or 0.44% after trading in a range of 31805.50 and 31965.40. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.31%, while Small cap index was down by 1.20%.

The top gaining sectoral indices on the BSE were Realty up by 0.62%, IT up by 0.28%, Consumer Durables up by 0.23%, Metal up by 0.15% and TECK up by 0.07%, while Healthcare down by 3.36%, Industrials down by 1.27%, Auto down by 1.18%, Capital Goods down by 0.80% and Telecom down by 0.79% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.58%, ONGC up by 0.76%, Infosys up by 0.67%, Asian Paints up by 0.64% and TCS up by 0.55%. On the flip side, Sun Pharma down by 4.18%, Cipla down by 3.23%, Adani Ports & SEZ down by 3.09%, Dr. Reddy’s Lab down by 2.75% and Bajaj Auto down by 2.54% were the top losers.

Meanwhile, after a month of successful rollout of the Goods and Services Tax (GST), one of the biggest fiscal reforms in India since Independence, Union Power Minister Piyush Goyal has termed GST as a crucial, adding that it will promote transparency and a corruption free business environment in the country.

The Minister further noted that the new tax regime also aims to bring the informal sector under the ambit of formal economy as it keeps track of every transaction from end to end without leaving any uncertainty. Besides, highlighting the advantages of GST, he said that the tax base would increase owning to this new tax reform which will reduce the tax rates eventually and added that increased revenue from taxes would enable targeted spending towards the different sections of the society along with better infrastructure development.

Goyal further said that the GST would create a level playing field by removing discrepancies from the system with the help of technology.  He said that with creation of different tax slabs under the GST, the government has attempted to keep the tax on common goods lower or equal to earlier regime wherever possible to maintain affordability.

The CNX Nifty is currently trading at 9938.20, down by 40.35 points or 0.40% after trading in a range of 9912.80 and 9969.80. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.09%, NTPC up by 1.84%, Vedanta up by 1.23%, Indian Oil Corp. up by 0.88% and ACC up by 0.87%. On the flip side, Aurobindo Pharma down by 5.53%, Sun Pharma down by 4.23%, Cipla down by 3.40%, Adani Ports & SEZ down by 3.18% and Indiabulls Housing Finance down by 2.91% were the top losers.

Asian markets were trading in red; Nikkei 225 decreased 257.3 points or 1.29% to 19,738.71, Taiwan Weighted decreased 98.59 points or 0.93% to 10,470.38, Hang Seng decreased 97.82 points or 0.35% to 27,757.09, KOSPI Index decreased 26.34 points or 1.1% to 2,368.39, Jakarta Composite decreased 13.46 points or 0.23% to 5,797.11, Shanghai Composite decreased 6.3 points or 0.19% to 3,275.57 and FTSE Bursa Malaysia KLCI decreased 2.83 points or 0.16% to 1,778.82.

European markets were trading in red; Germany’s DAX decreased 136.25 points or 1.11% to 12,155.80, France’s CAC decreased 73.67 points or 1.41% to 5,145.22 and UK’s FTSE 100 decreased 60.87 points or 0.81% to 7,481.86.