Indian bourses trade marginally lower in afternoon deals

Indian equity indices, altering between positive and negative territory, were now trading marginally in red in afternoon session on account of selling in frontline blue chip counters amid weakness in the Asian markets. The sentiments remained lackluster with Moody’s Investors Service’s statement that Indian economy will expand 7.4% in 2018, but the growth will slow down to 7.3% in the next year as domestic demand tapers on higher borrowing cost due to rising interest rates. It said the greatest downside risk to India's growth prospects stem from concerns about its financial sector. Some anxieties also came with a private report stating that unemployment rate in the country rose to 6.9% in October - the highest in two years. The estimated number of people employed during October 2018 was 397 million. This was 2.4% lower than the rate in October 2017. However, losses were limited as some optimism remained among the traders with Finance Minister Arun Jaitley’s statement that demonetisation helped in tackling black money and expanding the tax base. On the sectoral front, Sugar stocks remained in limelight with the commerce ministry’s statement that India will start exporting raw sugar to China from early next year, a move which will help to bridge the widening trade deficit with the neighbouring country.

On the global front, Asian markets were trading in red, after a post-election Wall Street rally faded and the U.S. Federal Reserve suggested it will keep raising interest rates. Back home, the BSE Sensex is currently trading at 35213.30, down by 24.38 points or 0.07% after trading in a range of 35011.23 and 35287.29. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.64%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.01%, Consumer Disc up by 0.87%, Consumer Durables up by 0.78%, Auto up by 0.77% and PSU up by 0.62%, while IT down by 1.09%, Realty down by 1.06%, TECK down by 1.04%, Metal down by 0.77% and Telecom down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.44%, Asian Paints up by 3.80%, Sun Pharma up by 3.02%, Adani Ports &SEZ up by 1.99% and Maruti Suzuki up by 1.76%. On the flip side, Infosys down by 2.37%, Bharti Airtel down by 2.30%, Wipro down by 1.72%, Tata Steel down by 1.31% and ITC down by 0.98% were the top losers.

Meanwhile, the Finance Ministry stated that total Goods and Services Tax (GST) refunds to the tune of Rs 82,775 crore to exporters has been cleared by the Central Board of Indirect Taxes and Customs (CBIC) and the state authorities out of the total refund claims of Rs 88,175 crore received so far. It noted that the disposal rate of GST refunds is 93.8 percent as on October-end this year. It also indicated that the pending GST refund claims amounting to Rs 5,400 crore are being expeditiously processed so as to give relief to eligible exporters.

Giving the refunds' break-up, the Ministry said that Rs 42,935 crore of IGST refunds have been disposed of as on October 31, which is 93.27 percent of the total such claims. It also indicated that as much as Rs 3,096 crore worth of IGST refund claims are held up on account of various deficiencies which have been communicated to exporters for remedial action. In the case of input tax credit claims, it noted that the total claims of Rs 42,145 crore, the pendency as on October 31 stood at Rs 2,305 crore.

It further said that there are concerns being raised about growing pendency of GST refunds and sought to assure the exporters that there is no let up in the sanction of GST refunds. It also said that refund claims without any deficiency are being cleared expeditiously. It also informed that efforts are being made continuously to clear all the pending refund claims, where ever requisite information is provided and found eligible.

The CNX Nifty is currently trading at 10596.30, down by 2.10 points or 0.02% after trading in a range of 10544.85 and 10619.55. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.47%, HPCL up by 4.44%, Asian Paints up by 3.91%, Sun Pharma up by 3.13% and BPCL up by 2.37%. On the flip side, Infosys down by 2.45%, Bharti Airtel down by 2.14%, Hindalco down by 2.07%, Dr. Reddys Lab down by 1.95% and Wipro down by 1.80% were the top losers.

All the Asian markets were trading in red; Shanghai Composite decreased 34.17 points or 1.31% to 2,601.46, Jakarta Composite shed 85.99 points or 1.46% to 5,890.82, Taiwan Weighted dipped 115.30 points or 1.17% to 9,830.01, Straits Times decreased 15.80 points or 0.51% to 3,077.44, Hang Seng dropped 637.76 points or 2.49% to 25,589.96, KOSPI was down by 6.54 points or 0.31% to 2,086.09 and Nikkei 225 fell 236.67 points or 1.06% to 22,250.25.