Local equities continue to trade marginally higher

Local equity benchmarks continued to trade in a positive trajectory in morning session, with gains of around quarter a percent. Among heavy-weights Tata Motors, Yes Bank and ONGC exhibited a smart performance. Market participants took some encouragement with Finance Minister Nirmala Sitharaman’s statement that GST collection of states and union territories (UTs) increased to Rs 5.18 lakh crore in the full financial year 2018-19, up from Rs 2.91 lakh crore collected in nine months of 2017-18. Besides, a data from the Reserve Bank of India showed that India’s receipts from exports of services rose 15.5 per cent to $18.68 billion in May this year. In May 2018, the receipts from services exports by India had stood at $16.17 billion. Though, gains remain capped with a report that business sentiment in India fell to its lowest level since June 2016, as companies were worried over a slowing economy, government policies and water shortage. Some cautiousness also came with a report that merchandise exports shrank 9.7% year-on-year in June to $25 billion, the first contraction in nine months and the worst since January 2016, mainly as petroleum exports plunged almost 33%.

On the global front, Asian markets were trading mixed amid a lack of fresh market-moving news as investors looked ahead to earnings season. Back home, on the sectoral front, steel industries stock remain mostly higher, despite a report stated that the country’s total steel exports fell 34 per cent in 2018-19 to 6.36 million tonne (MT) compared to the preceding fiscal. Besides, Gem & Jewellery Export Promotion Council report that Gems & jewellery exports continued to face headwinds with June shipments plunging 16.26 percent due to the renewed bout of US-China trade wars. Exports of gems & jewellery dipped 16.26 percent to $2.82 billion in June from $3.37 billion in June 2018.

The BSE Sensex is currently trading at 38998.89, up by 102.18 points or 0.26% after trading in a range of 38845.27 and 39059.97. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.26%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Realty up by 1.63%, Oil & Gas up by 1.06%, PSU up by 0.89%, Capital Goods up by 0.83% and Power was up by 0.79%, while IT down by 0.58%, TECK down by 0.44% and Auto was down by 0.09% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 2.77%, Tata Motors up by 2.55%, Yes Bank up by 1.93%, ONGC up by 1.56% and Bajaj Finance was up by 1.43%. On the flip side, TCS down by 1.78%, Hero MotoCorp down by 1.36%, Mahindra & Mahindra down by 1.19%, Kotak Mahindra Bank down by 0.82% and HCL Tech was down by 0.80% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that Goods and Services Tax (GST) collection of states and union territories (UTs) increased to Rs 5,18,447 crore in last financial year (FY19), up from Rs 2,91,100 crore collected in nine months (July-March) of FY18. Besides, the Centre has released Rs 81,177 crore compensation to states during FY19, as against Rs 48,178 crore during July-March period of FY18.

The Minister stated that concerted efforts have been made to improve tax compliance. The GST collection of the states/UTs has been showing steady improvement over the period of time. She added 'they are also assured a growth of 14 per cent for a period of five years through payment of compensation by the central government.'

She further said that extensive automation of business processes, application of e-way bill mechanism, targeted action on compliance verification, enforcement based on risk assessment and proposed introduction of electronic invoice system are the steps taken for increasing the revenue collection. GST, which subsumed 17 local taxes, was rolled out from July 1, 2017. The average gross GST collection in FY 19 fiscal was Rs 98,114 crore, up from Rs 89,885 crore in FY18.

The CNX Nifty is currently trading at 11620.35, up by 32.00 points or 0.28% after trading in a range of 11573.95 and 11637.20. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.55%, Yes Bank up by 1.93%, ONGC up by 1.59%, BPCL up by 1.51% and Bajaj Finance was up by 1.44%. On the flip side, UPL down by 1.92%, TCS down by 1.84%, Hero MotoCorp down by 1.35%, Mahindra & Mahindra down by 1.16% and Kotak Mahindra Bank was down by 0.90% were the top losers.

Asian markets are trading mixed; Hang Seng increased 21.72 points or 0.08% to 28,576.60, Straits Times advanced 8.10 points or 0.24% to 3,356.05, Taiwan Weighted strengthened 4.50 points or 0.04% to 10,880.93 and KOSPI was up by 4.16 points or 0.2% to 2,086.64.

On the other side; Shanghai Composite declined 3.11 points or 0.11% to 2,939.08, Jakarta Composite lost 21.17 points or 0.33% to 6,397.06 and Nikkei 225 was down by 153.73 points or 0.71% to 21,532.17.