Markets trade flat; GDP data eyed

Indian equity benchmarks were trading flat with bit of positive bias in afternoon session, as investors remained on sidelines ahead of the third quarter GDP growth data scheduled for release later in the day. Investors were taking some support with private report indicating that private equity (PE) investments in India witnessed a 36 per cent growth to $1,325 million despite fall in volume on account of increased follow-on investments last month as compared to a year ago. However, the market trimmed most of their gains, as anxiety remained among the local traders with private report stating that India's economy appeared to be losing momentum in the approach to a general election that must be held by May. The report forecast that growth slipped to 6.9% annually in the October-December quarter. Traders also took a note of India Ratings’ report that the government has depended on the National Small Savings Fund (NSSF) in FY19, but such borrowing runs the risk of understating the fiscal deficit number.

On the global front, Asian markets were trading in red, after cautious comments from US Trade Representative Robert Lighthizer dented some of the recent optimism towards Sino-US trade relations. Back home, the BSE Sensex is currently trading at 35914.66, up by 9.23 points or 0.03% after trading in a range of 35899.49 and 36085.85. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.23%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Utilities up by 0.94%, Power up by 0.81%, Energy up by 0.75%, PSU up by 0.67% and Oil & Gas up by 0.67%, while IT down by 0.75%, TECK down by 0.68%, Auto down by 0.22% and Consumer Durables down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.45%, NTPC up by 1.44%, Tata Motors up by 1.24%, Power Grid up by 1.21% and Coal India up by 1.20%. On the flip side, TCS down by 2.52%, Hero MotoCorp down by 1.48%, Bajaj Auto down by 1.29%, Axis Bank down by 1.25% and Tata Motors - DVR down by 0.96% were the top losers.

Meanwhile, Central Board of Indirect Taxes and Customs Member John Joseph said that the government has detected Goods and Services Tax (GST) evasion worth Rs 20,000 crore between April-February 2018-19 of which Rs 10,000 crore was recovered. He also said that the government will take more steps to check frauds and increase compliance.

Joseph has stated that the tax officers detected fake invoice worth Rs 1,500 crore which was used to claim illegal GST credit of Rs 75 crore. He said “we have already recovered Rs 25 crore and the rest is on the way.” Stating that only 5-10 percent of the businesses are black sheep and bring bad name to the industry, he said the government will take more measures to increase compliance, and act against evaders in a way such that genuine businesses do not suffer.

He further said the government has been dynamic in rationalising tax rates since GST rollout on July 1, 2017, while increasing compliance for 1.2 crore registered businesses. He said “in future, as GST moves forward, the rates need to consolidate. Across the world it is one rate, but it may not be possible for us to implement it here... because we have the poorest of the poor and the richest of the rich in the country. What is good for the richest, cannot be the best for the poor... But five rates converging into two or three, depending on what the Council decides. This is the way forward.”

The CNX Nifty is currently trading at 10808.15, up by 1.50 points or 0.01% after trading in a range of 10800.20 and 10865.70. There were 27 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.84%, Indian Oil Corp. up by 1.63%, GAIL India up by 1.47%, Power Grid up by 1.38% and Sun Pharma up by 1.28%. On the flip side, TCS down by 2.88%, Hero MotoCorp down by 1.68%, Indiabulls Housing Finance down by 1.56%, Bajaj Auto down by 1.44% and Axis Bank down by 1.38% were the top losers.

All Asian markets were trading in red; Jakarta Composite dropped 79.77 points or 1.22% to 6,445.91, Hang Seng decreased 132.42 points or 0.46% to 28,625.02, Straits Times trembled 22.40 points or 0.69% to 3,227.62, KOSPI fell 39.35 points or 1.76% to 2,195.44, Shanghai Composite declined 17.74 points or 0.6% to 2,936.08 and Nikkei 225 was down by 171.35 points or 0.79% to 21,385.16.