Lackluster trade prevails in late trade

Indian equity benchmarks continued their lackluster trade in last leg of trade, tracking weakness in global markets after the European Central Bank slashed its economic growth forecast, citing external uncertainties. Selling in metal and software pack too dampened sentiments. Metal index is trading lower with Hindalco and Jindal Steel & Power among the top losers, while the IT index was dragged down by selling in Wipro and Infibeam Avenues. Sentiments also remain dampened with report that the government may be staring at higher-than-projected deficit for the current fiscal with country's direct tax revenue expected to fall short by Rs 60,000 to 70,000 crore over the revised target of Rs 12 lakh crore for FY19.

Weak opening in European markets too dampened sentiments amid fears of a slowing global economy. Risk appetite faded after ECB President Mario Draghi said the economy was in a period of continued weakness and pervasive uncertainty. Investors also await US payrolls data for February due later in the day that may show a moderation in hiring due to external uncertainties. Asian stocks too traded lower on Friday after shockingly weak export data from China heightened market fears about a global economic slowdown.

Back home, auto stocks edged lower on report that domestic passenger vehicle (PV) sales declined 1.11 per cent to 2,72, 284 units in February from 2,75,346 units in the same month the previous year. However, power sector stocks edged higher with report that the government has cleared investment proposals worth over Rs 31,560 crore in power projects, including two coal-based thermal plants and a hydro project on river Chenab in Jammu and Kashmir.

The BSE Sensex is currently trading at 36637.22, down by 88.20 points or 0.24% after trading in a range of 36592.93 and 36753.59. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.23%, while Small cap index was down by 0.11%.

The top gaining sectoral indices on the BSE were Utilities up by 0.92%, Power up by 0.75%, Consumer Durables up by 0.36%, Realty up by 0.12% and Telecom was up by 0.07%, while Metal down by 1.67%, IT down by 0.80%, TECK down by 0.71%, Energy down by 0.67% and Oil & Gas was down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.70%, Bajaj Auto up by 1.60%, Sun Pharma up by 1.00%, Bajaj Finance up by 0.71% and ITC up by 0.66%. On the flip side, Tata Motors down by 3.51%, Tata Motors - DVR down by 3.06%, Vedanta down by 2.27%, HCL Tech down by 2.22% and ONGC down by 1.97% were the top losers.

Meanwhile, Finance Ministry has notified April 1, 2019, as the date for the implementation of doubling of Goods and Services Tax (GST) exemption limit to Rs 40 lakh. The move is expected to benefit small and medium enterprises (SMEs). Besides, the effective date for availing higher turnover cap of Rs 1.5 crore for availing composition scheme by traders has also been fixed as April 1. That apart, service providers and suppliers of both goods and services with a turnover of up to Rs 50 lakh would be eligible to opt for the GST composition scheme and pay a tax of 6 percent from the beginning of next fiscal.

According to the changed rules, there would be two threshold limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. Rs 40 lakh and Rs 20 lakh. States would have an option to decide about one of the limits. The Threshold for Registration for service providers would continue to be Rs 20 lakh and in case of Special Category States Rs 10 lakh.

Also the GST Composition Scheme, under which small traders and businesses pay a 1 percent tax based on turnover, can be availed by businesses with a turnover of Rs 1.5 crore, against the earlier Rs 1 crore, with effect from April 1. These decisions were taken by the GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, on January 10.

The CNX Nifty is currently trading at 11022.85, down by 35.35 points or 0.32% after trading in a range of 11008.95 and 11049.00. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.93%, Eicher Motors up by 1.48%, GAIL India up by 1.28%, Titan Company up by 1.16% and Ultratech Cement up by 1.13%. On the flip side, Wipro down by 4.09%, Tata Motors down by 3.65%, Hindalco down by 2.44%, Vedanta down by 2.44% and HCL Tech down by 2.26% were the top losers.

All the Asian markets are trading in red; Nikkei 225 declined 430.45 points or 2.01% to 21,025.56, Straits Times decreased 34.13 points or 1.06% to 3,195.35, Hang Seng dropped 551.03 points or 1.91% to 28,228.42, Taiwan Weighted shed 69.93 points or 0.68% to 10,241.75, KOSPI tumbled 28.35 points or 1.31% to 2,137.44, Jakarta Composite dipped 74.89 points or 1.16% to 6,383.07 and Shanghai Composite was down by 136.56 points or 4.40% to 2,969.86.

European markets are trading in red; FTSE declined 59.32 points or 0.83% to 7,098.23, CAC decreased 28.51 points or 0.54% to 5,239.41 and DAX was down by 79.09 points or 0.69% to 11,438.71.