Key equities continue lackluster trade

Local equity benchmarks continued their lackluster trade in morning session, with losses of around half a percent, tracking weak trade in Asian peers, as sentiments taken a hit after the Trump administration threatened to expand tariffs on $200 billion worth of Chinese imports. The Indian rupee opened stronger against the US dollar at 68.37, a day after the Reserve Bank of India (RBI) raised key lending rates to tame inflation, while retaining a neutral policy stance. Index stragglers included Maruti Suzuki, Tata Motors, Vedanta, HDFC and Reliance Industries were down by over a percent. Traders took note of report that the goods and services tax (GST) collections are rising, albeit gradually. However, these aren’t still keeping pace with the Centre’s budget targets. The GST collection for June came in at Rs 96,483 crore, a trifle more than the same for May, taking the monthly average for the current fiscal (April-June) to over Rs 95,000 crore, compared with Rs 90,000 crore last fiscal. Meanwhile, the GST Council is likely to consider extending some monetary sops to micro, small and medium enterprises (MSME) within the turnover threshold of Rs 1.5 crore.

On the global front, Asian markets were trading in red, with sentiment fragile after the latest escalation in Sino-US trade war while global bond markets were rattled by Washington's increased borrowing and Japan's new tolerance for higher yields. Back on domestic turf, on the sectoral front, Power stock remained in limelight on report from Central Electricity Authority which stated that India forecast for a third year that it will be able to supply more electricity than its distribution companies require as generation and transmission capacity rises. Supply from power plants will exceed demand from distributors by 4.6%. In the scrip specific development, GPT Infraprojects soared on bagging order worth Rs 362.16 crore.

The BSE Sensex is currently trading at 37340.92, down by 180.70 points or 0.48% after trading in a range of 37229.99 and 37529.69. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.08%, while Small cap index was down by 0.23%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.15%, IT up by 0.12%, FMCG up by 0.11%, PSU up by 0.07% and Oil & Gas was up by 0.07%, while Auto down by 1.18%, Realty down by 0.94%, Consumer Disc down by 0.70%, Telecom down by 0.66% and Bankex was down by 0.61% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.85%, Sun Pharma up by 1.36%, Coal India up by 1.13%, Infosys up by 0.89% and IndusInd Bank was up by 0.78%. On the flip side, Vedanta down by 1.67%, Maruti Suzuki down by 1.66%, HDFC down by 1.41%, Reliance Industries down by 1.31% and Yes Bank was down by 1.28% were the top losers.

Meanwhile, the Cabinet, headed by Prime Minister Narendra Modi, has cleared the Goods and Services Tax (GST) laws amendments, as approved by the GST Council. The amendments include hiking threshold limit for availing composition scheme for dealers to Rs 1.5 crore.

In all, there are 46 amendments, which among other things, will allow employers to claim input tax credit on facilities like food, transport and insurance provided to employees under any law. It also provides for modification of reverse charge mechanism, separate registration for companies having different business verticals, cancellation of registration, new return filing norms and issuance of consolidated debit/credit notes covering multiple invoices.

The government will now table amendments to the Central GST law, Integrated GST law, Compensation Cess law in the ongoing monsoon session of Parliament. Besides, as many as 46 amendments were cleared by the GST Council, chaired by Union Finance Minister Piyush Goyal, at its meeting on July 21.

The CNX Nifty is currently trading at 11290.55, down by 55.65 points or 0.49% after trading in a range of 11263.55 and 11328.90. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were HPCL up by 2.11%, Dr. Reddy’s Lab up by 2.06%, Cipla up by 1.85%, Lupin up by 1.81% and Sun Pharma was up by 1.78%. On the flip side, Maruti Suzuki down by 1.80%, Tata Motors down by 1.62%, Vedanta down by 1.60%, HDFC down by 1.55% and Reliance Industries was down by 1.51% were the top losers.

Asian markets were trading in red; KOSPI slipped 34.10 points or 1.5% to 2,272.97, Taiwan Weighted lost 158.46 points or 1.45% to 10,939.67, Nikkei 225 decreased 241.49 points or 1.07% to 22,505.21, Hang Seng fell 674.52 points or 2.44% to 27,666.22, Jakarta Composite declined 11.60 points or 0.19% to 6,021.82, Straits Times decreased 44.98 points or 1.37% to 3,284.03 and Shanghai Composite was down by 69.31 points or 2.52% to 2,755.22.