Weak trade persists; Metal loses shine

Indian benchmark indices continued to display weakness in late afternoon session, with Sensex falling down by around 150 points. Weak IIP data along with sluggish Asian markets continued to dampen the investor's sentiments. India's Industrial production growth slowed down to 3.8% in the month of September 2017, as against 5.7% in September 2016. Adani Ports & SEZ remained the biggest loser among Sensex components by slumping more than 3% after the company reported 7.88%  fall in its consolidated net profit at Rs 992.37 crore for the quarter ended September 30, 2017, as compared to Rs 1077.28 crore for the corresponding quarter in the FY17. The other laggards that pulled down the indices were Coal India, HDFC, Tata steel and ONGC. Higher opening in European markets and the GST Councils' move to cut tax rate on 178 items from 28% to 18%, failed to provide relief to the traders. Meanwhile, coal import for October came in flat at 16.65 million tonnes, underpinned by cautious buying of the fossil fuel by consumers due to high prices in the overseas market.

On the global front, European markets were trading mostly in green as investors focused on earnings, while keeping an eye on tax reform plans in the US and political woes in the UK. However, Asian markets were trading in red. Back home, in scrip specific development, Ratnamani Metals & Tubes jumped higher after the company bagged new order of Rs 248 crore from Oil & Gas Sector for Coated ERW Pipes to be completed by August, 2018.

The BSE Sensex is currently trading at 33164.63, down by 149.93 points or 0.45% after trading in a range of 33134.18 and 33417.30. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.11%, while Small cap index was down by 0.06%.

The top gaining sectoral indices on the BSE were IT up by 0.38%, Consumer Disc up by 0.16%, TECK up by 0.13% and Auto up by 0.07%, while Metal down by 1.64%, Consumer Durables down by 1.47%, Oil & Gas down by 1.36%, Energy down by 1.15% and Capital Goods down by 0.86% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.32%, Sun Pharma up by 2.02%, Mahindra & Mahindra up by 1.89%, Asian Paints up by 0.64% and SBI up by 0.60%. On the flip side, Adani Ports & SEZ down by 3.29%, Coal India down by 3.23%, ONGC down by 2.75%, HDFC down by 2.24% and Tata Steel down by 1.75% were the top losers.

Meanwhile, lauding the government’s move to cut Goods and Services Tax (GST) rates on over 200 items, the Confederation of All India Traders (CAIT) has said that the move will be a game changer in simplifying the tax regime and encourage its wider adoption. It added that the move will also provide a big relief to traders who were depressed lot post GST implementation.

CAIT further noting effects of the move on the government’s revenue said that there will be a loss of about Rs 34,000 crore due to this. However, traders' body ensured that the trading community will compensate for such losses by making all efforts to widen the tax net base, if it is taken in confidence and various procedures are eased. CAIT while listing the move’s benefits for the industry also pointed on non- performance of the GST portal and expressed a need to look on this issue immediately.

The GST Council in its 23rd meeting, slashed the tax rate on 178 items from 28% to 18%. Only 50 items have been left in the 28% bracket that include products in luxury and sin goods category and some with large revenue implications such as tobacco products, automobile, washing machine and air-conditioners.

The CNX Nifty is currently trading at 10256.35, down by 65.40 points or 0.63% after trading in a range of 10252.50 and 10334.15. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were TCS up by 2.19%, Mahindra & Mahindra up by 1.92%, Sun Pharma up by 1.71%, Ambuja Cement up by 0.80% and SBI up by 0.52%. On the flip side, Adani Ports & SEZ down by 3.37%, Coal India down by 3.29%, Aurobindo Pharma down by 3.24%, ONGC down by 2.90% and BPCL down by 2.46% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 300.43 points or 1.32% to 22,380.99, Taiwan Weighted decreased 48.75 points or 0.45% to 10,683.92, KOSPI Index decreased 12.6 points or 0.5% to 2,530.35 and FTSE Bursa Malaysia KLCI decreased 0.24 points or 0.01% to 1,742.04. On the flip side, Jakarta Composite increased 4.37 points or 0.07% to 6,026.20, Shanghai Composite increased 15.16 points or 0.44% to 3,447.84 and Hang Seng increased 61.26 points or 0.21% to 29,182.18.

European Markets were trading mostly in green; Germany’s DAX increased 14.89 points or 0.11% to 13,142.36 and UK’s FTSE 100 increased 22.56 points or 0.3% to 7,455.55. On the flip side, France’s CAC decreased 3.9 points or 0.07% to 5,376.82.