Sensex, Nifty turn negative

Indian equity benchmarks turned negative in late afternoon session, despite firm opening in European markets. Domestic sentiments got hit, as traders' body CAIT warned that allowing central as well as state tax administrations to initiate action against any taxpayer irrespective of jurisdiction would lead to harassment of traders and complicate the tax system. Adding some anxiety, job creation slowed down by 8.39 percent to stand at 8,94,769 in August month as against the revised figure of 9,76,675 in July month. However, down side remained capped with a private report stating that the Reserve Bank of India is expected to keep key policy rates unchanged in the remaining 2018-19 fiscal as inflation may stay benign in the range of 3 to 4.4 percent.  On the sectoral front, sugar stocks remained in limelight, amid reports that state governments' announcement of cash subsidy is likely to improve the liquidity of mills, helping them in making cane payments to farmers.

On the global front, European markets were trading in green, as Euro area current account surplus increased in August from the previous month. As per preliminary data from the European Central Bank, the current account surplus rose to EUR 24 billion from EUR 19 billion in July. Meanwhile, the UK budget deficit reached its lowest September level in 11 years. The data from the Office for National Statistics showed that public sector net borrowing excluding public sector banks was GBP 4.1 billion, which was GBP 0.8 billion less than in September 2017. Asian markets were trading in green, following soothing comments from top officials about the health of the economy. Back home, in scrip specific development, NBCC (India) gained after the company has been issued Letter of Awards (LoA) for redevelopment of Ayur Vigyan Nagar Campus of AIIMS at New Delhi and redevelopment of Charbagh, Lucknow Railway Station and adjoining Land Parcels.

The BSE Sensex is currently trading at 34274.23, down by 41.40 points or 0.12% after trading in a range of 34262.52 and 34748.69. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.59%, while Small cap index was down by 1.75%.

The top gaining sectoral indices on the BSE were FMCG up by 0.38%, Auto up by 0.28%, Power up by 0.24%, Utilities up by 0.23% and Bankex up by 0.06%, while Energy down by 2.32%, Oil & Gas down by 1.76%, Consumer Durables down by 1.16%, Basic Materials down by 1.04% and Industrials down by 0.91% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 4.06%, Vedanta up by 2.44%, NTPC up by 2.35%, HDFC Bank up by 1.71% and Bajaj Auto up by 1.68%. On the flip side, Indusind Bank down by 9.40%, Yes Bank down by 3.47%, Tata Motors - DVR down by 3.23%, Reliance Industries down by 2.78% and Asian Paints down by 2.58% were the top losers.

Meanwhile, the Retirement fund body, Employment Provident Fund Organisation (EPFO) in its latest ‘Net Payroll Data’ report has showed that India created 8.95 lakh new jobs in the month of August 2018. However, job creation slowed down by 8.39% to stand at 8,94,769 in August month as against the revised figure of 9,76,675 in July month.

As per the report, the maximum jobs were created in the age bracket of 18-21 and in this bracket the top 10 sectors which have created more fresh jobs include Expert Services, Trading - Commercial Establishments, Electric-Mechanical-or General Engineering Products, Building & Construction Industry, Engineers- Engineering Contractors, establishments engaged in Manufacturing- Marketing Servicing- Usage of Computers, Textiles, Garments making, establishment engaged in Cleaning and Sweeping Services and Hospitals. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Tamil Nadu, Karnataka, Gujarat, and Haryana.

According to the data report, 6754 new jobs were created in less than 18 age group category, while 251034 jobs in 18-21 age group category. Further, 22-25 age, 26-28 age, 29-35 age and more than 35 age group category witnessed 248789, 105048, 143287 and 139857 new payrolls, respectively in August 2018.

The CNX Nifty is currently trading at 10285.00, down by 18.55 points or 0.18% after trading in a range of 10277.25 and 10408.55. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 9.44%, ICICI Bank up by 3.96%, Eicher Motors up by 3.60%, HCL Tech. up by 2.72% and Vedanta up by 2.51%. On the flip side, Indusind Bank down by 9.11%, BPCL down by 4.07%, Ultratech Cement down by 3.83%, Yes Bank down by 3.58% and Bajaj Finserv down by 2.83% were the top losers.

All Asian markets were trading in green; Nikkei 225 gained 82.74 points or 0.37% to 22,614.82, Jakarta Composite increased 9.91 points or 0.17% to 5,847.20, Straits Times rose 10.61 points or 0.35% to 3,073.12, Taiwan Weighted added 55.02 points or 0.55% to 9,974.28, Hang Seng zoomed 591.75 points or 2.26% to 26,153.15, Shanghai Composite jumped 104.41 points or 3.93% to 2,654.88 and KOSPI was up by 5.45 points or 0.25% to 2,161.71.

All European markets were trading in green; UK’s FTSE 100 surged 9.62 points or 0.14% to 7,059.42, France’s CAC added 8.55 points or 0.17% to 5,093.21 and Germany’s DAX was up by 53.77 points or 0.46% to 11,607.60.