Bearish trend continues on Dalal Street

Key equity indices continued to trade lower in late morning deals on Tuesday, as Sentiments remained down-beat with private report stating that the decline in economic growth momentum in October-December quarter of FY19 is likely to continue. As per the report, subdued consumption demand and election related uncertainty is expected to weigh on India's industrial production. However, some support came with a report stating that about 200 American companies are seeking to move their manufacturing base from China to India post the general elections. Sentiment on the street weakened with the India Meteorological Department’s (IMD) statement that pre-monsoon rainfall from March to April, a phenomenon critical to agriculture in some parts of the country, has recorded 27 per cent deficiency. The IMD recorded 43.3 millimetres of rainfall across the country from March 1 to April 24 as against the normal precipitation of 59.6 millimetres. This was 27 per cent less of the Long Period Average (LPA).

Asian Market were trading mixed as traders remained concerned with China's manufacturing activity failed to meet expectations, underscoring weakness in the world's second-largest economy despite Beijing's attempts to spur growth. Back home, On scrip specifics Yes Bank slips on reporting net loss of Rs 1507 crore in Q4 followed by  Hero Motocorp declines on reporting 25% fall in Q4 net profit. On sectoral front Telecom is the biggest loser down by 2.49%.

The BSE Sensex is currently trading at 38889.58, down by 177.75 points or 0.45% after trading in a range of 38753.46 and 39068.67. 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 1.14%, while Small cap index was down by 1.13%.

The top gaining sectoral indices on the BSE were IT up by 0.91%, TECK up by 0.57%, Consumer Durables up by 0.46%, Oil & Gas up by 0.35% and Metal was up by 0.11%, while Telecom down by 2.49%, Realty down by 2.19%, Auto down by 1.60%, Bankex down by 1.32% and Power was down by 0.93% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 2.83%, Asian Paints up by 1.37%, Infosys up by 1.21%, HDFC Bank up by 1.20% and Axis Bank was up by 0.76%. On the flip side, Yes Bank down by 26.92%, Indusind Bank down by 5.90%, Hero MotoCorp down by 3.30%, Bharti Airtel down by 2.28% and Vedanta was down by 2.24% were the top losers.

Meanwhile, the Central Board of Indirect Taxes and Customs (CBIC) has said that businesses that have accumulated Integrated GST (IGST) credit in their books can settle it against central and state tax dues in any proportion. Importers typically pay IGST on goods they bring into the country. Also IGST is paid on inter-state movement of goods. This tax is supposed to be set-off against the actual GST paid by the final consumer, or claimed as refund.

Earlier, in March 2019, CBIC had allowed utilisation of input tax credit (ITC) of IGST towards the payment of Central GST and State GST, in any order subject to the condition that the entire IGST liability has been first discharged using the accumulated credit. However, there were confusion among taxpayers regarding the quantum of utilisation of IGST credit in paying CGST and SGST dues. The CBIC has now clarified that the IGST credit can be used in payment of CGST or SGST in any order or proportion. Under Goods and Services Tax (GST), the tax levied on consumption of goods or rendering of service is split 50:50 between the centre and the state. Such tax is known as central GST (CGST) and state GST (SGST).

On inter-state movement of goods as well as imports, an IGST is levied, which accrues to the centre. Ideally, there should be 'nil' balance in the IGST pool at the end of a fiscal since the amount should be used for payment of CGST and SGST. As some businesses are ineligible to claim the benefits of input tax credit (ITC), the balance gets accumulated in the IGST pool. 

The CNX Nifty is currently trading at 11700.95, down by 53.70 points or 0.46% after trading in a range of 11655.90 and 11748.75. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.81%, HCL Technologies up by 2.54%, Indian Oil Corp. up by 1.60%, BPCL up by 1.43% and Dr. Reddys Laboratories was up by 1.38%. On the flip side, Yes Bank down by 26.81%, Indiabulls Housing down by 6.94%, Indusind Bank down by 5.98%, Bharti Infratel down by 3.32% and Hero MotoCorp was down by 3.16% were the top losers.

Asian Market were trading mixed; Taiwan Weighted strengthened 28.67 points or 0.26% to 10,967.73,Jakarta Composite soared 13.57 points or 0.21% to 6,439.47 and  Shanghai Composite was up by 8.47 points or 0.28% to 3,070.97. On the other side, KOSPI fell 8.72 points or 0.39% to 2,207.71, Straits Times trembled 10.63 points or 0.31% to 3,396.39 and Hang Seng was down by 177.69 points or 0.59% to 29,715.12.