Markets slip into negative terrain in early afternoon deals

Indian equity indices once again slipped into negative territory in early afternoon trade, on account of selling witnessed in frontline blue chip stocks such as SBI, ICICI Bank, Yes Bank and Asian Paints among others. The sentiments turned pessimistic despite India Meteorological Department (IMD) forecasting that the Monsoon would hit Kerala in the next 24 hours. It said that the southwest Monsoon had advanced into South Andaman Sea, some parts of South Bay of Bengal and Nicobar Islands on May 25, with enhanced cloudiness and rainfall. Traders failed to get relief with Economic Affairs Secretary Subhash Chandra Garg’s statement that the Indian economy is expected to grow between 7.3-7.5 percent in the March quarter. The government will release GDP data on Thursday. He said the country was expected to grow at 6.7 percent in the 2017-18 financial year that ended in March. Moreover, the rupee depreciating by 43 paise to 67.85 against the dollar in early trade, too weighed on the sentiments. In scrip specific development, Idea Cellular surged by around 3 percent on launching its 4G VoLTE (Voice-over-LTE) service in nine new telecom circles, including Rajasthan, Punjab, Haryana, Bihar, Mumbai, Karnataka, Jharkhand, West Bengal, Uttar Pradesh East and West.

On the global front, Asian markets were trading in red, as the fall in crude oil prices and the prospects of fresh elections in Italy offset optimism over a possible revival in diplomatic talks between the US and North Korea. Back home, the BSE Sensex is currently trading at 35084.16, down by 81.32 points or 0.23% after trading in a range of 35083.70 and 35234.14. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.18%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.58%, Auto up by 0.56%, Capital Goods up by 0.48%, Industrials up by 0.38% and Basic Materials up by 0.17%, while Bankex down by 0.99%, Consumer Durables down by 0.57%, Healthcare down by 0.44%, PSU down by 0.32% and Realty down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 0.79%, Tata Steel up by 0.78%, Tata Motors up by 0.71%, Larsen & Toubro up by 0.67% and Bajaj Auto up by 0.51%. On the flip side, SBI down by 2.17%, ICICI Bank down by 2.09%, Yes Bank down by 1.55%, Asian Paints down by 1.46% and Indusind Bank down by 0.91% were the top losers.

Meanwhile, in order to boost the agriculture sector, the Finance Ministry has clarified applicability of the Goods and Services Tax (GST) on farmers. It has said that support services like renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry are exempt from the ambit of new indirect tax. It also said that agriculturists are exempted from GST registration and added that there has been no change in the GST law and taxation relating to farmers since July, 2017, when GST was implemented.

As per the ministry, exempted support services are renting or leasing of vacant land with or without a structure incidental to its use. Thus, renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry on batai (share cropping) or otherwise is also exempt from GST.

Besides, agriculturist has been defined to mean an individual or an HUF (Hindu Undivided Family) who undertakes cultivation of land- by own labour or by the labour of family or by servants or wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family.

The CNX Nifty is currently trading at 10674.10, down by 14.55 points or 0.14% after trading in a range of 10663.50 and 10717.25. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.14%, Indian Oil Corporation up by 1.26%, Larsen & Toubro up by 1.06%, HPCL up by 1.05% and Grasim Industries up by 1.01%. On the flip side, SBI down by 2.11%, ICICI Bank down by 2.09%, Bharti Infratel down by 1.90%, Yes Bank down by 1.75% and Asian Paints down by 1.30% were the top losers.

Asian markets were trading in red; Hang Seng decreased 230.59 points or 0.75% to 30,561.67, Nikkei 225 fell 122.66 points or 0.55% to 22,358.43, Taiwan Weighted dipped 23.65 points or 0.22% to 10,964.12, KOSPI Index was down by 21.71 points or 0.88% to 2,457.25 and Shanghai Composite shed 12.48 points or 0.4% to 3,122.60.