Key gauges trim gains to trade marginally in green

Local equity benchmarks trimmed most of their gains in morning session, but continue to trade above the neutral lines. Traders were seen piling positions in IT, TECK and FMCG sector, while selling was witnessed in Telecom, Metal and Basic Materials sector stocks. Some cautiousness came with a report that Indian economy may be moving towards a slowdown as the country has off-late witnessed a drop in several key economic indicators. After a fall in auto sales, a shortfall in collection of direct taxes among others, now household savings in the country too have declined. However, the downfall was arrested with World Bank’s report that India retained its position as the world’s top recipient of remittances with its diaspora sending a whopping $79 billion back home in 2018. Over the last three years, India has registered a significant flow of remittances from $62.7 billion in 2016 to $65.3 billion 2017.

On the global front, all Asian markets were trading in green, as investors watched developments such as the renewed conflict in key oil producer Libya. Back home, India has begun a probe into alleged dumping of aluminium and zinc coated flat products from China, Vietnam and Korea following a complaint. The commerce ministry's arm Directorate General of Trade Remedies (DGTR) initiated the investigation on an application filed by JSW Steel Coated Products.

The BSE Sensex is currently trading at 38744.34, up by 43.81 points or 0.11% after trading in a range of 38620.09 and 38850.66. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.43%, while Small cap index was down by 0.40%.

The top gaining sectoral indices on the BSE were IT up by 0.65%, TECK up by 0.41%, FMCG up by 0.35%, Healthcare up by 0.32% and Energy was up by 0.11%, while Telecom down by 1.47%, Basic Materials down by 0.68%, Metal down by 0.65%, Consumer Disc down by 0.52% and Consumer Durables was down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 2.25%, Tata Motors up by 1.77%, Yes Bank up by 1.73%, Tata Motors - DVR up by 1.35% and Bajaj Auto was up by 1.13%. On the flip side, Bharti Airtel down by 2.54%, Asian Paints down by 2.43%, Tata Steel down by 1.17%, Bajaj Finance down by 0.96% and IndusInd Bank was down by 0.89% were the top losers.

Meanwhile, in order to compensate auto industry, which is expected to see price hike in range of 10-15% with the coming of new emission and safety regulations, Society of Indian Automobile Manufacturers (SIAM) has urged the government to cut Goods and Services Tax (GST) on passenger vehicles and two-wheelers from 28%  to 18%.  It fears that with the increase in prices, the demand for their products will be impacted. Presently, automobiles attract peak GST rate of 28% with additional cess ranging from 1% to 15%, depending on the length, engine size and type.

SIAM’s President Rajan Wadhera said ‘we want the government to be sensitive to the fact that BS-VI emission introduction (from Apri1, 2020) and other safety regulations will add to the cost. If it adds to the cost it is likely to lead to a slowdown in the demand’.  HE further added if the demand goes down, government collection of taxes will also go down. 'Therefore, for a win-win situation, we are seeking a 18 percent GST in automobiles’.

He further said that a price hike of even 10% would impact the sales of the two-wheeler segment, which currently witnesses offtake of over 22 million units annually. In PVs also, the prices are going to go up in the range of 10-15% on account of technology and safety enhancements. There also we need serious considerations by the government so that it is a win-win situation for all.

The CNX Nifty is currently trading at 11610.00, up by 5.50 points or 0.05% after trading in a range of 11574.15 and 11638.25. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 2.61%, Wipro up by 2.03%, Tata Motors up by 1.77%, Yes Bank up by 1.71% and Bajaj Auto was up by 1.18%. On the flip side, Bharti Airtel down by 2.73%, Indiabulls Housing Finance down by 2.65%, Asian Paints down by 2.47%, Adani Ports down by 1.54% and UPL was down by 1.24% were the top losers.

All Asian markets were trading in green, Hang Seng increased 59.42 points or 0.2% to 30,136.57, Jakarta Composite soared 49.90 points or 0.78% to 6,475.63, Taiwan Weighted strengthened 31.04 points or 0.29% to 10,831.61, KOSPI rose 8.17 points or 0.37% to 2,218.77, Nikkei 225 surged 6.03 points or 0.03% to 21,767.68, Straits Times advanced 5.37 points or 0.16% to 3,320.79 and Shanghai Composite gained 4.39 points or 0.14% to 3,249.20.