Post Session: Quick Review

Indian equity benchmarks traded in red for most part of the day and ended the session with losses of over half percent. Selling intensified during second half of the day and dragged the key benchmark indices BSE Sensex and NSE Nifty below their crucial 35,000 and 10,650 levels, respectively.  Domestic indices made a positive start and traded marginally in green, tracking positive leads from Asian markets. Investors took some support with Prime Minister Narendra Modi’s statement that India’s economy will sustain a growth of 7.5 to 8 per cent per year. He said, the Indian government has kept its economic growth forecast for the current fiscal unchanged at 7.5 per cent, buoyed by turnaround in manufacturing and pick up in investment. After that, markets turned choppy and traded flat as traders remained concerned ahead of services sector data for May slated to be released on June 5, while the Reserve Bank’s rate decision will be announced on June 6. The RBI is expected to take a wait-and-watch approach despite the higher GDP growth figures released last week.

Key indices extended losses in second half of the session, on report that foreign investors pulled out a massive Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices. Some anxiety also persists on the street with report highlightingthat collections from the Goods and Services Tax in May fell to Rs 94,016 crore, from the Rs 1.03 lakh crore collected in April. 

On the global front, Asian markets closed mostly higher, as upbeat manufacturing and jobs data from the U.S. bolstered optimism in the world's largest economy and U.S. President Donald Trump revealed that his summit with North Korean leader Kim Jong Un is back on. The European markets were trading in green in early deals on Monday, thanks to bank stocks as dealmaking took center stage again after a week of political tension in Italy and Spain and friction between the U.S. and its allies over trade policies. 

Back home, public sector banks were under pressure on report that losses by state-run banks have almost entirely wiped out the $13-billion capital infusion by the government, and the situation is unlikely to improve in the current fiscal year. However, select aviation stocks ended in higher as Airport Authority of India’s report showed that passenger traffic at Indian airports in April registered a growth of 21.7% over the corresponding month last year. The report also said that domestic traffic grew by 25 percent and international traffic by 10.2 percent in April, with the overall passenger movement being recorded at 28.22 million.

The BSE Sensex ended at 34996.82, down by 230.44 points or 0.65% after trading in a range of 34985.70 and 35555.59. There were 6 stocks advancing against 25 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined by 0.77%, while Small cap index down by 2.09%. (Provisional)

The few gaining sectoral indices on the BSE were IT up by 0.50%, TECK up by 0.40%, Energy up by 0.35% and Metal up by 0.13%, while Realty down by 3.17%, Power down by 2.25%, Telecom down by 2.04%, Consumer Durables down by 1.71% and Utilities down by 1.60% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Dr. Reddys Lab up by 2.76%, Infosys up by 1.63%, Mahindra & Mahindra up by 1.55%, Tata Steel up by 1.08% and Reliance Industries up by 0.96%. (Provisional)

On the flip side, HDFC Bank down by 2.99%, Bharti Airtel down by 2.90%, Adani Ports & SEZ down by 2.61%, Hindustan Unilever down by 2.03% and Power Grid down by 1.87% were the top losers. (Provisional)

Meanwhile, after crossing Rs 1 lakh crore mark for the first time since the launch of new tax regime in April 2018, the government’s revenue collection under the Goods and Services Tax (GST) during the month of May 2018 has declined to Rs 94,016 crore, but it was higher than the average monthly collection of Rs 89,885 crore during 2017-18. The government has collected Rs 1.03 lakh crore in April. The Finance Ministry has said that the April revenue figure was higher because of year end effect.

According to the data, the total gross GST revenue collected in May was Rs 94,016 crore, out of which Central GST (CGST) was Rs 15,866 crore, State GST (SGST) Rs 21,691 crore, Integrated GST (IGST) Rs 49,120 crore (including Rs 24,447 crore collected on imports) and cess Rs 7,339 crore. As many as 62.47 lakh businesses filed their summary sales return GSTR-3B in the month under review.

The Finance Ministry said that the total revenue earned by Central Government and the State Governments after settlement in the month of May, 2018 is Rs 28,797 crore for CGST and Rs 34,020 crore for SGST. Besides, the Union government on May 29, has released Rs 6,696 crore to the states as GST compensation for March 2018. Therefore, the total GST compensation released to the states for the Financial Year 2017-18 (July 2017 to March 2018) has been Rs 47,844 crore.

The CNX Nifty ended at 10624.10, down by 72.10 points or 0.67% after trading in a range of 10618.35 and 10770.30. There were 14 stocks advancing against 36 stocks declining on the index. (Provisional)

The top gainers on Nifty were Dr. Reddys Lab up by 2.89%, Infosys up by 1.72%, Mahindra & Mahindra up by 1.51%, Lupin up by 1.33% and Hindalco up by 1.30%. (Provisional)

On the flip side, Indiabulls Housing Finance down by 5.06%, Bharti Airtel down by 3.18%, HDFC Bank down by 3.03%, Adani Ports & SEZ down by 2.44% and Bajaj Finserv down by 2.21% were the top losers. (Provisional)

The European markets were trading in green; France’s CAC increased 25.48 points or 0.47% to 5,491.01, Germany’s DAX was up by 39.46 points or 0.31% to 12,763.73 and UK’s FTSE 100 added 54.37 points or 0.71% to 7,756.14.

Asian equity markets ended mostly higher on Monday as upbeat manufacturing and jobs data from the US bolstered optimism in the world's largest economy and US President Donald Trump revealed that his summit with North Korean leader Kim Jong Un is back on. US non-farm payroll employment surged up by 223,000 jobs in May after climbing by a downwardly revised 159,000 jobs in April. The jobless rate edged down to 3.8 percent from 3.9 percent in April, the lowest since a matching rate in April 2000. Japanese shares ended higher, with a weaker yen and solid data from the US buoying investors’ sentiments. Further, Chinese stocks closed higher even as trade worries persisted after China warned that it will withdraw from commitments made so far on trade if US President Donald Trump carries out his threat to impose tariffs on the Asian country.