Weak trade persists on Dalal Street

Weak trade continued on Dalal Street in late afternoon session, despite firm opening in European markets. Traders remained concerned with a report that India’s monsoon rains were below average for the fourth straight week, with rainfall scanty over central and western parts of the country in the week ended on June 26, raising concerns about major crop production and the impact on the nation's economy. Some concerns also came after the Directorate General of GST intelligence (DGGI) detected good and services tax (GST) evasion amounting to Rs 300 crore across Nagpur zone, which includes Vidarbha, Marathwada and Nasik regions of Maharashtra.  

On the global front, European markets were trading in green, after the UK economy expanded at a faster pace in the first quarter, as previously estimated. The latest data from the Office for National Statistics showed that gross domestic product climbed 0.5 percent sequentially, unrevised from the first estimate, and faster than the 0.2 percent growth registered in the fourth quarter. However, Asian markets were trading in red.

The BSE Sensex is currently trading at 39456.43, down by 129.98 points or 0.33% after trading in a range of 39413.18 and 39675.25. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.18%, while Small cap index was down by 0.16%.

The top gaining sectoral indices on the BSE were Realty up by 1.11%, Capital Goods up by 0.27%, FMCG up by 0.25%, Utilities up by 0.21% and Consumer Durables up by 0.19%, while Metal down by 1.51%, Energy down by 1.09%, Basic Materials down by 0.97%, Telecom down by 0.75% and Bankex down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.04%, Bajaj Finance up by 0.84%, NTPC up by 0.78%, Larsen & Toubro up by 0.76% and Hindustan Unilever up by 0.68%. On the flip side, Yes Bank down by 3.60%, Tata Motors - DVR down by 2.51%, Indusind Bank down by 2.40%, Tata Motors down by 2.08% and Vedanta down by 1.98% were the top losers.

Meanwhile, Industry body FICCI’s National Committee on Transport Infrastructure and the Consulting Engineers Association of India (CEAI) has said that Union Ministry of Finance should re-look at its Goods and Service Tax collection regime for Consulting and service-providing sector.

The industry body also urged to put the onus of depositing of Goods and service tax on the Client (Service Receiver) including both the government and Private sector. It further mentioned about the present situation of the sector, saying that the consulting and service community which provides service to the government and private sector is being coerced into the payment of GST on behalf of the employer, whereas, their role is that of a mere collector of tax on behalf of the government.

Besides, K K Kapila, Co-Chairperson, FICCI Infra Committee and Chairman advisory committee CEAI, said that at present, the Consulting community continues to be made liable for payment of GST on behalf of the employer, even before the consultants receive their remuneration from the employer.

Kapila also noted that ‘this practice places an enormous burden on the service providers, as most of the service seekers are various government departments...where payment invariably gets delayed, many times 4-6 months and even beyond a year in a few cases.’ Further, Kapila said this effects the cash flow of service providers and many have become defaulters in settling the GST dues for no other reason but due to lack of resources, as the payment is being sought even before receipt of the money for the services rendered.

The CNX Nifty is currently trading at 11795.85, down by 45.70 points or 0.39% after trading in a range of 11787.45 and 11871.70. There were 15 stocks advancing against 34 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were GAIL India up by 1.55%, Tech Mahindra up by 1.07%, NTPC up by 1.00%, Adani Ports & SEZ up by 0.93% and Bajaj Finserv up by 0.86%. On the flip side, Yes Bank down by 3.74%, Bharti Infratel down by 2.75%, Indiabulls Housing Finance down by 2.51%, Indusind Bank down by 2.43% and Tata Motors down by 2.23% were the top losers.

All Asian markets were trading red; Shanghai Composite declined 20.10 points or 0.67% to 2,976.69, KOSPI fell 3.70 points or 0.17% to 2,130.62, Nikkei 225 slipped 62.25 points or 0.29% to 21,275.92, Straits Times trembled 1.75 points or 0.05% to 3,326.85, Taiwan Weighted dropped 43.07 points or 0.4% to 10,730.83, Hang Seng decreased 144.52 points or 0.5% to 28,476.90 and Jakarta Composite was down by 0.52 points or 0.01% to 6,352.19.

All European markets were trading in green; FTSE gained 14.79 points or 0.20% to 7,417.12, CAC rose 6.46 points or 0.12% to 5,500.07 and DAX was up by 58.64 points or 0.48% to 12,329.67.