Benchmarks continue lackluster trade marginally in red

Indian equity benchmarks continued their lackluster trade marginally in red in afternoon session, on the back of selling activities by market-participants. Investors’ sentiments remain dented with the Reserve Bank of India’s (RBI) data showing that Indian companies’ investment in their overseas ventures fell by 47% to $1.54 billion in September 2018. Indian companies had invested $2.91 billion in their joint ventures (JVs) and wholly-owned subsidiaries (WoS) abroad during September 2017. Some anxiety also remained among the local traders with a private report stating that high oil prices are hurting consumers and could also have adverse implications for producers. Major emerging Asian economies such as India and Indonesia have been hit hard this year by rising crude oil prices. However, losses were limited as traders found some support with Finance Minister Arun Jaitley’s statement that India is close to doubling its tax base in the 2014-19 period. He also said that total tax payers estimated to be 7.5 crore by the end of this financial year 2019, nearly double as compared to about 3.8 crore people were filing income tax in May 2014. On the sectoral front, Airline sector remained in focus with Minister of State (MoS) for Civil Aviation Jayant Sinha urging Finance Minister Arun Jaitley to bring aviation turbine fuel (ATF) under the purview of the Goods and Services Tax (GST) regime.

On the global front, Asian markets were trading in mostly in green, as traders took the weaker yuan as a sign that Chinese exports can remain competitive even if a trade dispute with Washington heats up. Back home, the BSE Sensex is currently trading at 34007.70, down by 59.70 points or 0.18% after trading in a range of 33915.52 and 34176.36. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.88%, while Small cap index was up by 0.94%.

The top gaining sectoral indices on the BSE were IT up by 1.65%, TECK up by 1.61%, Telecom up by 0.89%, Industrials up by 0.80% and Capital Goods up by 0.79%, while Energy down by 2.09%, Oil & Gas down by 0.82%, Metal down by 0.74%, Healthcare down by 0.08% and Power down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.30%, Infosys up by 2.36%, TCS up by 1.50%, Yes Bank up by 1.43% and Tata Motors - DVR up by 1.35%. On the flip side, Reliance Industries down by 2.55%, Coal India down by 2.47%, Indusind Bank down by 2.44%, HDFC down by 1.30% and Sun Pharma down by 1.23% were the top losers.

Meanwhile, expressing hope over increase in the number of direct taxpayers, Finance Minister Arun Jaitley has said that India is close to doubling its tax base in the 2014-19 period. He also said that total tax payers estimated to be 7.5 crore by the end of this financial year 2019, nearly double as compared to about 3.8 crore people were filing income tax in May 2014.

In FY 2017-18, the number of income tax returns filed increased to 6.8 crore. Finance Minister said with increase in the economic growth and the increased formalisation of the economy on the back of initiatives like demoetisation and the Goods and Services Tax (GST), the tax base has gone up.

On the Insolvency and Bankruptcy Code (IBC) process to resolve insolvency cases, Jaitley said that the key reforms such as the IBC and demonetisation have brought about moral quotient, which was badly needed in India, as the money deposited in banks after the development shows demonetisation success. He added that demonetisation made the government intent clear.

The CNX Nifty is currently trading at 10240.30, down by 10.55 points or 0.10% after trading in a range of 10206.30 and 10285.10. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 3.54%, SBI up by 3.38%, Tech Mahindra up by 2.67%, Infosys up by 2.24% and HCL Tech. up by 1.86%. On the flip side, BPCL down by 3.10%, Cipla down by 2.64%, Coal India down by 2.44%, Reliance Industries down by 2.39% and Indusind Bank down by 2.29% were the top losers.

Asian markets were trading in mostly in green; KOSPI increased 18.64 points or 0.93% to 2,014.69, Shanghai Composite surged 26.07 points or 1.02% to 2,568.17, Nikkei 225 rose 307.49 points or 1.43% to 21,457.29, Jakarta Composite added 15.33 points or 0.27% to 5,769.94 and Taiwan Weighted increased 9.79 points or 0.1% to 9,526.11.

On the flip side, Hang Seng decreased 152.52 points or 0.62% to 24,659.52 and Straits Times was down by 14.69 points or 0.5% to 2,966.85.