Markets extend losses; trade near intraday low levels

The local equity benchmarks extended their losses in late afternoon session to trade near their intraday low levels, despite higher opening in European markets. In line with the larger peers, the broader markets also added losses in noon deals. Besides, metal stocks declined the most among all sluggish indices on the BSE. The market participants remained concerned with a joint study by the Confederation of Indian Industry (CII) and the Indian Banks’ Association (IBA) which has indicated that the India’s financial conditions index stood at 53.2 for Q4 (January-March) of 2017-18 as against 65.3 in the previous quarter, thereby registering a significant fall of 12.1 points. Some losses were came with FICCI survey report stating that glitches in the Goods and Services Tax Network (GSTN) portal, cumbersome procedures and documentation as well as the cost of compliance are major areas of concern that need to be addressed to make the GST a success. The major industry losers like Tata Steel, Dr. Reddy’s Lab and SBI, also contributed to the losses. Adding some anxiety, India’s export of finished steel shrank by over 30% to 0.616 million tonnes (MT) during January 2018.

On the global front, European markets were trading in green, as investors remain optimistic about global growth. Asian markets were also trading in green. Back home, in scrip specific development, Religare Enterprises was trading jubilantly after the company received an approval for raising up to Rs 1,200 crore through issue of shares/convertible securities and/or debt subject to necessary approvals including shareholders’ approval as may be required. 

The BSE Sensex is currently trading at 33594.51, down by 416.25 points or 1.22% after trading in a range of 33573.52 and 34122.96. There were 2 stocks advancing against 28 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.72%, while Small cap index was down by 1.55%.

The losing sectoral indices on the BSE were Metal down by 2.40%, PSU down by 2.18%, Capital Goods down by 1.84%, Healthcare down by 1.73% and Industrials down by 1.67%, while there were no gaining sectoral indices on the BSE.

The few gainers on the Sensex were Kotak Mahindra Bank up by 0.31%, NTPC up by 0.22% and Coal India up by 0.03%. On the flip side, Tata Steel down by 6.15%, Dr. Reddy’s Lab down by 3.82%, SBI down by 3.64%, Adani Ports & SEZ down by 3.24% and Sun Pharma down by 2.82% were the top losers.

Meanwhile, assessing position of the industries post the implementation of Goods and Services Tax (GST), industry body, the Federation of Indian Chambers of Commerce and Industry (FICCI) in its latest survey report stated that the new tax regime has had a positive impact on the logistics of businesses, with over 60% respondents indicated good transportation of goods in terms of check-posts. As per the survey report, over 50% of respondents highlighted that goods vehicles are no longer stopped and there is no checking at state borders, while 59% respondents were optimistic with transportation time reduction post GST implementation.

However, FICCI’s survey report highlighted the major issues being faced by the industry such as glitches in the Network (GSTN) portal, cumbersome procedures and cost of compliance. In the report, issues with the robustness and volume handling capacity of the GST portal were pointed out by all the respondents of the survey and expressed need for a major revamp of the portal, to make it more efficient.

The survey report further said that multiplicity of registrations remained a concern for services providers, as a separate registration is now required with every state where service is being provided. On the return filings, the survey respondents urged to make filing of returns simpler and added that there should also be a centralised registration for inter-state services.

The CNX Nifty is currently trading at 10305.10, down by 147.20 points or 1.41% after trading in a range of 10302.75 and 10489.35. There were 1 stocks advancing against 49 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 0.46% and Coal India up by 0.03%. On the flip side, Tata Steel down by 6.57%, Dr. Reddy’s Lab down by 4.39%, Adani Ports & SEZ down by 3.71%, SBI down by 3.63% and HCL Tech down by 3.56% were the top losers.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 17.38 points or 0.95% to 1,855.66, KOSPI Index increased 20.99 points or 0.87% to 2,442.82, Jakarta Composite increased 78.68 points or 1.19% to 6,670.27 and Nikkei 225 increased 428.96 points or 1.97% to 22,149.21.

All European markets were trading in green, UK’s FTSE 100 increased 3.68 points or 0.05% to 7,298.38, France’s CAC increased 7.99 points or 0.15% to 5,289.57 and Germany’s DAX increased 31.89 points or 0.26% to 12,483.85.