Post Session: Quick Review

Indian equity benchmarks traded below neutral line for most part of the day and ended with cut of around a percent. The selling intensified during second half of the day mainly dragged the key benchmark indices BSE Sensex and NSE Nifty below their crucial 34,400 and 10,450 levels, respectively. Domestic bourses made a pessimistic start tracking feeble global cues. Trading sentiments remained subdued with former Union Finance Minister P Chidambaram criticising the Centre for the fuel price hike and claimed that the rate can be reduced by Rs 25 per litre but the government is not doing it. Selling further crept in despite 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. The market participants even overlooked report that the agriculture ministry released the Model Contract Farming Act, 2018, which lays emphasis on protecting the interests of farmers, considering them as weaker of the two parties entering into a contract.

On the global front, Asian markets ended mostly in red, as investors remained cautious after US President Donald Trump tempered optimism over progress made in trade talks between the world's two largest economic powers. The European markets were trading in red amid Italian government uncertainty and souring market sentiment over ongoing trade talks between the world's two biggest economies. 

Back home, State-owned oil refiners as well as marketing companies, such as Indian Oil and Hindustan Petroleum, were under pressure on worries that the government may ask them to share the burden of higher petrol and diesel prices. Select Airline stocks such as SpiceJet and InterGlobe Aviation ended 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.

 The BSE Sensex ended at 34342.44, down by 308.80 points or 0.89% after trading in a range of 34302.89 and 34668.47. There were 5 stocks advancing against 26 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.20%, while Small cap index was down by 0.47%. (Provisional)

The few gaining sectoral indices on the BSE were Consumer Durables up by 0.23%, Capital Goods up by 0.19% and Industrials up by 0.08%, while Metal down by 3.74%, Oil & Gas down by 3.43%, Energy down by 2.38%, Basic Materials down by 2.02% and Realty down by 1.18% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 3.52%, NTPC up by 0.85%, Larsen & Toubro up by 0.76%, Mahindra & Mahindra up by 0.49% and Tata Motors up by 0.42%. (Provisional)

On the flip side, Tata Steel down by 6.03%, ONGC down by 4.77%, Dr. Reddys Lab down by 3.16%, Indusind Bank down by 2.79% and ITC down by 1.94% were the top losers. (Provisional)

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 ended at 10428.55, down by 108.15 points or 1.03% after trading in a range of 10417.80 and 10533.55. There were 15 stocks advancing against 35 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 3.76%, Tech Mahindra up by 2.13%, Cipla up by 1.91%, UPL up by 1.11% and Larsen & Toubro up by 0.82%. (Provisional)

On the flip side, HPCL down by 8.14%, Vedanta down by 7.22%, Tata Steel down by 6.14%, BPCL down by 5.46% and ONGC down by 5.29% were the top losers. (Provisional)

The European markets were trading in red; Germany’s DAX decreased 207.27 points or 1.57% to 12,962.65, France’s CAC dipped 71.12 points or 1.26% to 5,568.98 and UK’s FTSE 100 shed 60.64 points or 0.77% to 7,816.81.

Asian equity markets ended mostly lower on Wednesday after President Donald Trump raised doubts that a summit with North Korean leader Kim Jong Un planned for June 12 will take place as planned. Japanese shares ended lower, as comments from US President Donald Trump rekindled worries about trade friction, hurting steelmakers and shippers among others. Trump on Tuesday said he was not pleased with recent trade talks between the United States and China, checking hopes that the world’s two biggest economies were on course to hammer out a deal. Further, Chinese shares ended lower, dragged by a slump in coal miners as Beijing intervened to cool the red-hot coal market.