Bourses extend losses to trade near day’s low

Key Indian equity benchmarks extended losses in late afternoon session to trade near their intraday low points, tracking weak European markets. Heavy selling at Realty and Consumer Durables counters along with sluggish broader indices, dragged the markets down. Anxiety spread among the traders, after the Directorate General of GST Intelligence (DGGI) has busted a racket of fraudulent companies engaged in raising fake tax invoices worth Rs 220 crore to avail input-tax credit. Sentiments remained lackluster with Sebi Chairman Ajay Tyagi’s statement that the capital markets, globally, have been quite volatile during the current year and are likely to remain so in coming times on account of various factors such as US Fed rate hikes, volatile oil prices, intensifying trade conflicts and sanctions. Some concerns also came with reports that Reserve Bank of India has cancelled the registration of 1,490 non-banking financial companies (NBFCs). These included NBFCs that failed to meet prudential norms and those that voluntarily surrendered registration.

On the sectoral front, stocks related to oil industry remained in focus, amid reports that Oil ministers from leading OPEC nations said that they expect prices will arrest their recent slide and rebalance early next year, when a deal on new production cuts takes effect, while Consumer Durables stocks were trading lower, with the Goods and Services Tax (GST) Council, which met to decide on rate rationalisation of key items, keeping air conditioners in the highest tax slab.

On the global front, European markets were trading in red, as British business investment fell for three consecutive quarters, marking its weakest period since the 2008-09 global financial crisis, as businesses reduced spending due to the Brexit chaos. Business investment decreased 1.1 percent sequentially in the third quarter, falling for a third consecutive quarter. As per the Office for National Statistics, investment declined for such a long duration for the first time since the economic downturn of 2008-2009. Asian markets were also trading in red.

The BSE Sensex is currently trading at 35595.52, down by 146.55 points or 0.41% after trading in a range of 35550.29 and 35910.67. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index shed 0.45%, while Small cap index was down by 0.88%.

The few gaining sectoral indices on the BSE were IT up by 0.86%, Telecom up by 0.77% and TECK was up by 0.75%, while Realty down by 2.05%, Consumer Durables down by 1.77%, Consumer Disc down by 1.38%, Metal down by 1.33% and Basic Materials down by 1.11% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.51%, Mahindra & Mahindra up by 1.01%, ITC up by 0.94%, Infosys up by 0.86% and Kotak Mahindra Bank up by 0.80%. On the flip side, Hero MotoCorp down by 3.98%, Bajaj Auto down by 2.94%, Asian Paints down by 2.27%, NTPC down by 1.69% and HDFC down by 1.56% were the top losers.

Meanwhile, a day after the Goods and Services Tax (GST) Council decided to lower tax rates on 23 commonly used goods and services, President of PHD Chamber of Commerce and Industry, Rajeev Talwar has expressed need to bring petroleum products under the ambit of GST to rationalise the impact of indirect taxes by subsuming VAT (Value Added Tax) and excise duties in GST, amid volatility in the international crude oil prices.

Rajeev Talwar highlighted that continuous reforms in the policy environment would pave the way for higher, sustainable and strong economic growth trajectory going forward. Further he said that India would be a tax-compliant country in the next few years, on account of a realistic, pragmatic and prudent policy approach.

President of PHD Chamber hailed the GST Council's decision to reduce tax rates, noting that the move is a great relief for every segment of the society. Besides, Talwar said that the shift in items from higher tax slabs to lower tax slabs is the visible intent of the government to constantly reforming the taxation system to make it more and more simple.

The CNX Nifty is currently trading at 10683.75, down by 70.25 points or 0.65% after trading in a range of 10682.75 and 10782.30. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.69%, Wipro up by 1.44%, TCS up by 1.40%, GAIL India up by 0.74% and Kotak Mahindra Bank up by 0.70%. On the flip side, JSW Steel down by 4.35%, Hero MotoCorp down by 4.34%, Bajaj Auto down by 3.01%, Indian Oil Corporation down by 2.83% and Titan Co down by 2.78% were the top losers.

Asian market were trading mostly in red; Hang Seng decreased 102.04 points or 0.4% to 25,651.38, KOSPI fell 6.48 points or 0.31% to 2,055.01 and Taiwan Weighted dropped 6.46 points or 0.07% to 9,639.70. On the flip side, Straits Times advanced 5.02 points or 0.16% to 3,051.06 and Shanghai Composite was up by 10.76 points or 0.43% to 2,527.01.

European markets are trading mostly in red; CAC decreased 42.93 points or 0.91% to 4,651.45 and FTSE lost 59.20 points or 0.88% to 6,661.97.