Feeble global cues drag markets lower in early deals

Pressurized by feeble global cues, Indian equity benchmarks made a pessimistic start and are trading slightly in red with Sensex breaching its crucial 34,600 mark, while Nifty holding on to its psychological 10,500 mark. Sentiments remained dampened on report that fuel prices hit a fresh record high on Tuesday as petrol prices rose 30 paise to Rs 84.70 per litre in Mumbai. Similarly, diesel prices rose 27 paise to Rs 72.48 per litre in Mumbai. However, losses remained capped on private report stating that an open data ecosystem will impact India’s GDP by $22 billion, or the equivalent of two times the amount raised through the sale of 4G spectrum in 2017. The report claims that an open data ecosystem has the power to double farmers’ income by 2022, provide Universal Health coverage and provide microloans to three million plus micro, small and medium enterprises among other benefits.

Global cues remained subdued with most of the Asian counters trading lower at this point of time after Donald Trump cast doubt on a historic summit with North Korean leader Kim Jong Un. The US markets ended lower on Tuesday, unable to sustain positive momentum from the previous session despite overtures from China.

Back home, aviation stocks flied higher on report that Civil Aviation Ministry will urge the Finance Ministry to bring the particular fuel type under the ambit of GST. In this regard, a proposal will be made to the Ministry of Finance to bring air turbine fuel (ATF) under the ambit of GST to contain the rise in jet fuel cost due to high global crude oil prices. In scrip specific developments, Sun Pharma moved up on its arm getting USFDA approval for YONSA and HCL Technologies gained on joining Blockchain in Transportation Alliance.

The BSE Sensex is currently trading at 34575.08, down by 76.16 points or 0.22% after trading in a range of 34567.17 and 34667.78. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.52%, while Small cap index was up by 0.45%.

The top gaining sectoral indices on the BSE were PSU up by 1.02%, Power up by 0.84%, Healthcare up by 0.74%, Utilities up by 0.68% and Industrials was up by 0.57%, while Metal down by 1.25%, Oil & Gas down by 0.60%, Basic Materials down by 0.53%, Energy down by 0.42%, Consumer Discretionary Goods & Services down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 5.12%, Tata Motors up by 1.58%, NTPC up by 1.45%, Sun Pharma up by 1.31% and Yes Bank up by 0.63%. On the flip side, Tata Steel down by 2.52%, Dr. Reddys Lab down by 2.24%, Indusind Bank down by 1.99%, Hero MotoCorp down by 0.95% and Asian Paints down by 0.84% were the top losers.

Meanwhile, in order to have an equal voice on international taxation issues, India has urged the United Nations (UN) to provide a transparent platform for all member states. International taxation issue is perceived as ‘skewed’ in favour of those who make the rules. The counsellor in India’s Permanent Mission to the UN Ashish Sinha highlighted that India has been of the view that the Committee of Experts on International Cooperation in Tax Matters Committee should be upgraded into an intergovernmental body. He added that for more effective implementation of tax standards universal membership is essential.

Sinha also said that India believes that implementation of a truly universal agenda would need a platform where all countries have equal voice on the issues related to international taxation. In order to safeguard the interest of all its members, he said that UN can provide this platform for open, transparent and inclusive processes. He added that this would also strengthen the relationship between taxation and development by providing a voice to the developing countries and a balance between North and South.

Ashish Sinha further said that in order to meet the ambitious targets of 2030 Agenda for Sustainable Development, adequate means of implementation are required. He also said that tax revenue is the most important means for the developing countries for mobilizing domestic resources for meeting the Sustainable Development Goals (SDGs). Increasingly globalised nature of business in today’s interconnected world requires tax policies with a perspective beyond national borders. More importantly, it requires international cooperation and strengthening of institutional arrangements.

The CNX Nifty is currently trading at 10510.70, down by 26.00 points or 0.25% after trading in a range of 10510.25 and 10533.55. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were SBI up by 4.96%, Cipla up by 4.03%, Tata Motors up by 1.30%, NTPC up by 1.24% and Indiabulls Housing up by 1.03%. On the flip side, Vedanta down by 2.94%, Tata Steel down by 2.81%, Dr. Reddys Lab down by 2.07%, Bajaj Finance down by 1.89% and BPCL down by 1.87% were the top losers.

Asian markets are trading mostly lower; Hang Seng decreased 325.34 points or 1.04% to 30,909.01, Nikkei 225 declined 271.32 points or 1.18% to 22,689.02, Taiwan Weighted shed 46.08 points or 0.42% to 10,892.65, FTSE Bursa Malaysia KLCI fell 29.43 points or 1.6% to 1,815.60 and Shanghai Composite down by 25.7 points or 0.8% to 3,188.65.

On the flip side, KOSPI Index increased 5.54 points or 0.22% to 2,471.11 and Jakarta Composite up by 60.46 points or 1.05% to 5,811.58.