Post Session: Quick Review

It was a fruitful day for the Indian equity markets, crossing their crucial 12,000 (Nifty) and 40,000 (Sensex) bastions for the first time ever on Monday. The momentum in the markets was buoyed by fall in crude oil prices, stronger rupee and hope of rate cut after weak Q4 GDP data in the ongoing monetary policy committee (MPC) meeting of the Reserve Bank of India. Markets made an optimistic start and traded in fine fettle, on report that tax mop-up crossed Rs 1 lakh crore for the third straight month. The Goods and Services Tax (GST) collection in May came in at Rs 1,00,289 crore, clocking a growth of about 7% compared with the mop-up of Rs 94,016 crore in the corresponding month last fiscal. Buying also crept in with a report that overseas investors pumped in a net amount of Rs 9,031 crore into the Indian capital markets in May on expectations of more business-friendly measures following the BJP's landslide victory in the general elections.

Key indices continued their rally mood to reach at fresh intraday high points in last leg of trade, as sentiments on the street improved further with a monthly survey showing that the country's manufacturing sector performance gained momentum in May as companies lifted output amid strengthening demand conditions, leading to further job creation in the sector. The Nikkei India Manufacturing Purchasing Managers' Index, improved to 52.7 in May from 51.8 in April, pointing to the strongest improvement in the health of the sector in three months. Local investors also cheered as the government decided to extend PM-KISAN scheme to all 14.5 crore farmers, costing Rs 87,000 crore a year, and also announced over Rs 10,000 crore pension scheme for five crore farmers, thereby fulfilling the BJP's poll promise. Traders shrugged off the Central Statistics Office’s (CSO) data showing that economic growth slowed to a 5-year low of 5.8% in the fourth quarter of 2018-19, pushing India behind China, due to poor showing by agriculture and manufacturing sectors.

On the global front, Asian markets ended mixed on Monday tracking global losses as Wall Street clocked its worst month this year, with investors opting for safe-haven assets in the wake of intensifying trade tensions. European markets were trading in red, following losses in Asia. Back home, banking sector stocks ended higher despite rating agency Fitch’s statement that the performance of India’s banking sector is likely to be below average for the next two years because it is struggling with poor asset quality and weak core capitalization.

The BSE Sensex ended at 40286.96, up by 572.76 points or 1.44% after trading in a range of 39711.02 and 40308.90. There were 29 stocks advancing against 2 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.98%, while Small cap index was up by 0.45%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 2.06%, Auto up by 2.00%, Consumer Durables up by 1.98%, Consumer Discretionary Goods & Services up by 1.82%, Metal up by 1.76%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Hero MotoCorp up by 6.03%, Bajaj Auto up by 3.96%, Asian Paints up by 3.86%, Indusind Bank up by 3.82% and Coal India up by 3.06%. (Provisional)

On the flip side, ICICI Bank down by 0.11% and NTPC down by 0.04% were the top losers. (Provisional)

Meanwhile, the Finance Ministry has said Goods and Services Tax (GST) collections touched Rs 1 lakh crore in May 2019 as compared to Rs 94,016 crore in the year ago period. The total gross GST revenue collected in the month of May, 2019 was Rs 1,00,289 crore of which CGST  (Central GST) was Rs 17,811 crore, SGST (State GST) was Rs 24,462 crore, IGST (Integrated GST) was Rs 49,891 crore and Cess was Rs 8,125 crore. However, the gross collection in May was lower than Rs 1,13,865 crore collected in April 2019.

An amount of Rs 18,934 crore has been released to the states as GST compensation for the months of February-March, 2019. A total of 72.45 lakh GSTR-3B returns were filed in the month of May, higher than 72.13 lakh in April.

As per the budget estimate for the current financial year (FY20), the average monthly GST collection is pegged at 1.14 lakh crore. The average of the first two months of the fiscal is below the required rate, though the collection has breached the 1-lakh crore mark for three consecutive months for the first time since GST was implemented.

The CNX Nifty ended at 12092.80, up by 170.00 points or 1.43% after trading in a range of 11920.10 and 12103.05. There were 45 stocks advancing against 5 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 5.77%, Asian Paints up by 3.74%, Bajaj Auto up by 3.56%, Indusind Bank up by 3.28% and Indiabulls Housing Finance up by 3.24%. (Provisional)

On the flip side, GAIL India down by 0.78%, Tech Mahindra down by 0.22%, ICICI Bank down by 0.20%, Ultratech Cement down by 0.11% and Bharti Infratel down by 0.06% were the top losers. (Provisional)

European markets were trading in red; UK’s FTSE 100 decreased 27.00 points or 0.38% to 7,134.71, France’s CAC fell 9.38 points or 0.18% to 5,198.25 and Germany’s DAX was down by 14.02 points or 0.12% to 11,712.82.

Asian markets ended mixed on Monday as worries about rising trade tensions stoked fears of a global recession. In addition to the US-China trade war, US President Donald Trump's decision to impose tariffs on all Mexican imports weighed on investor sentiment. On June 02, China published a white paper that said the US should take responsibility for the setback in the US-China trade talks. The paper accused the US of being an untrustworthy negotiator and backtracking on its commitments in trade negotiations. Chinese shares ended modestly lower as worries about US-China trade tensions more than offset data that showed China's manufacturing activity continued to log moderate growth in May. The Caixin Purchasing Managers' Index came in at 50.2 in May, unchanged from the previous month. The reading was forecast to remain stable at neutral 50.0. Meanwhile the Indonesia market is closed all week in observance of Eid-ul-Fitr.