Key indices trade in tight range; Sensex holds 36,300 mark

Key benchmark indices were trading in a tight range in early noon session with Sensex holding its 36,300 mark and Nifty posting gains of around quarter a percent. Buying in Oil & Gas, Consumer Durables and PSU stocks helped the markets to remain in positive territory. Some support came in with private report projecting the Indian economy to record 7.4% growth in 2018-19. Investors also took some comfort with a report stating that Corporate India announced deals worth $74.8 billion in the January-June period, registering a 90% jump over last year, largely driven by big ticket consolidations. However, gains were capped as traders remained a bit cautious with the IHS Markit Business Outlook survey highlighting that business confidence regarding future activity in India remained subdued in the month of June amidst intense competition, high fuel prices and strong cost pressures.

On the sectoral front, selected PSBs stocks remained in focus with a report stating that the government is planning to infuse around Rs 8,000 crore in five to six public sector banks (PSBs), including scam-hit Punjab National Bank (PNB), which are likely to fall short of regulatory requirements.  Textile sector also remained in limelight with a report highlighting that the Government has doubled the import duty on almost all forms of textile products ranging from fibre to apparel.

On the global front, Asian markets were trading mostly in red, following the lackluster cues overnight from Wall Street and the plunge in crude oil prices. Investors are also cautious as they focus on the earnings and production results of major companies due this week. Back home, market breadth was slightly tilted towards the negative side, but the broader indices were outperforming their larger peers. In scrip specific development, Opto Circuits surged on reporting 46% rise in Q1 consolidated net profit and SSWL jumped on bagging 18000 wheels order from European Aftermarket.

The BSE Sensex is currently trading at 36356.27, up by 32.50 points or 0.09% after trading in a range of 36261.78 and 36470.76. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.88%, while Small cap index up by 0.27%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.34%, Consumer Durables up by 1.01%, PSU up by 0.99%, Healthcare up by 0.97% and Energy up by 0.88%, while FMCG down by 0.58%, IT down by 0.08% and TECK down by 0.05% were the few losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.40%, Tata Motors up by 2.01%, ICICI Bank up by 1.81%, Wipro up by 1.55% and Mahindra & Mahindra up by 1.40%. On the flip side, Hindustan Unilever down by 3.16%, Indusind Bank down by 1.40%, Bharti Airtel down by 1.30%, NTPC down by 1.03% and Kotak Mahindra Bank down by 0.49% were the top losers.

Meanwhile, calling the taxation as ‘wrong’, Global airlines’ body International Air Transport Association (IATA) has strongly opposed imposition of Goods and Services Tax (GST) on international air tickets, as it breaks many international pacts to which India is a party. IATA represents more than 280 airlines across the world and its members include Air India, Jet Airways and Vistara.

IATA Director General and CEO Alexandre de Juniac has said that they are asking the government to zero-rate international tickets. He also mentioned that under the new tax regime, tax at the rate of 5 percent and 12 percent is levied on economy and business class air tickets, respectively. According to him, GST was not the only challenge when it comes to taxation in the aviation sector.

The IATA chief further said that they are engaging with the government to resolve the tax-on-tax treatment of passenger fees and charges, as well as on invoicing and compliance matters. He said “We are making progress. I am cautiously optimistic for a good result. The sooner the better.”

The CNX Nifty is currently trading at 10961.85, up by 25.00 points or 0.23% after trading in a range of 10925.60 and 10989.65. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were HPCL up by 3.29%, Indian Oil Corp. up by 2.73%, Cipla up by 2.49%, Sun Pharma up by 2.33% and GAIL India up by 1.94%. On the flip side, Hindustan Unilever down by 2.81%, Bharti Airtel down by 1.55%, Indusind Bank down by 1.47%, NTPC down by 0.90% and Bajaj Finance down by 0.77% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 361.46 points or 1.28% to 28,178.20, KOSPI fell 4.36 points or 0.19% to 2,297.63, Shanghai Composite declined 29.39 points or 1.06% to 2,784.65, Taiwan Weighted slipped 38.46 points or 0.36% to 10,778.99 and Jakarta Composite was down by 42.23 points or 0.72% to 5,862.93.

On the contrary, Nikkei 225 increased 100.01 points or 0.44% to 22,697.36 and Straits Times was up by 6.03 points or 0.19% to 3,238.82.