Weakness persists in markets in afternoon deals

Indian benchmark indices continued to trade in red in afternoon session on account of selling in frontline blue chip counters amid mixed Asian cues. The sentiment remained dull 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). Disappointing quarterly earnings by some blue- chip companies too aided the downtrend. However, benchmark indices pared some of their initial losses, as traders found some support with Union minister Suresh Prabhu’s statement that the country is working on district-based developmental model to achieve aggregate growth. He said if the national growth was at 6% and those of the districts was 4%, the aggregate growth would be 10%. In the currency front, the rupee appreciated by 19 paise to 69.82 against the US dollar in early trade, amid easing crude prices.

On the global front, Asian Market were trading mixed, as readings on 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, the BSE Sensex is currently trading at 38904.98, down by 162.35 points or 0.42% after trading in a range of 38753.46 and 39068.67. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.27%, while Small cap index was down by 1.23%.

The top gaining sectoral indices on the BSE were IT up by 1.26%, TECK up by 0.86%, Consumer Durables up by 0.60%, Metal up by 0.33% and Oil & Gas up by 0.18%, while Telecom down by 2.79%, Realty down by 2.52%, Auto down by 1.45%, Bankex down by 1.37% and Power down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech. up by 3.36%, Infosys up by 1.94%, HDFC Bank up by 1.28%, Asian Paints up by 1.15% and Tata Steel up by 1.04%. On the flip side, Yes Bank down by 28.05%, Indusind Bank down by 5.68%, Hero MotoCorp down by 3.09%, Vedanta down by 2.48% and Bharti Airtel down by 2.42% were the top losers.

Meanwhile, in a bid to curb tax evasion, Goods and Services Tax (GST) officers are working on a system in which businesses above a certain turnover threshold will have to generate ‘e-invoice’ on government or GST portal for every sale. Businesses above a specified threshold will just get a unique number for every electronic invoice or e-invoice generated. This number can be matched with the invoices reported in the sales return and taxes paid.

Going forward, businesses will be required to generate full electronic-tax invoice or e-invoice recording entire value of sales. Businesses beyond a turnover threshold would be provided a software which will be linked to GST or a government portal for generating e-invoice. The threshold can also be fixed on the basis of the value of invoice. E-invoice generation method will be similar to the one being followed for e-way bill on the ‘ewaybill.nic.in’ portal or payment of Goods and Services Tax on the GSTN portal.

The e-invoice system will eventually replace the requirement of generation of e-way bill for movement of goods, as invoices would be generated through a centralised government portal. Currently, e-way bill is required for movement of goods worth more than Rs 50,000 across state borders. Once full e-tax invoice starts getting generated, it would significantly ease burden of return filing by businesses as invoice wise data would be auto-populated in the return forms.

The CNX Nifty is currently trading at 11706.20, down by 48.45 points or 0.41% after trading in a range of 11655.90 and 11748.75. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HCL Tech. up by 3.27%, JSW Steel up by 3.18%, Infosys up by 2.01%, Indian Oil Corp. up by 1.90% and Dr. Reddys Lab up by 1.63%. On the flip side, Yes Bank down by 27.91%, Indiabulls Housing Finance down by 7.50%, Indusind Bank down by 5.81%, Bharti Infratel down by 3.57% and Hero MotoCorp down by 3.09% were the top losers.

Asian Market were trading mixed; Shanghai Composite gained 6.29 points or 0.21% to 3,068.79, Jakarta Composite soared 16.84 points or 0.26% to 6,442.74 and Taiwan Weighted strengthened 28.67 points or 0.26% to 10,967.73. On the flip side, Hang Seng decreased 213.43 points or 0.71% to 29,679.38, KOSPI fell 12.84 points or 0.58% to 2,203.59 and Straits Times trembled 12.05 points or 0.35% to 3,394.97.