Markets fall from day’s high points

Markets saw a sharp fall in late afternoon session, coming off their intraday high points, despite firm opening in European markets. Domestic sentiments got hit, after outgoing Reserve Bank of India Deputy Governor Viral Acharya said that an increase in government borrowing runs the risk of flooding the debt market, and puts upward pressure on interest rates, making it more expensive for companies to borrow. Traders turned pessimistic, as the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) slipped to Rs 81,913 crore at June-end. 

On the global front, European markets were trading in green, after Poland's unemployment rate dropped for the fourth straight month in June. The data from Statistics Poland showed that the unemployment rate fell to 5.3 percent in June from 5.4 percent in May. In the same period last year, the jobless rate stood at 5.8 percent. Asian markets were trading in green.

Back home, realty stocks came under pressure, amid reports that housing sales fell 11 per cent in April-June 2019-20 across nine major cities to nearly 72,000 units but demand is expected to rise due to additional tax sops in the Budget for affordable homes and political stability at the Centre.

The BSE Sensex is currently trading at 37959.13, down by 72.00 points or 0.19% after trading in a range of 37917.52 and 38217.81. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.46%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were FMCG up by 1.47%, Utilities up by 1.34%, Power up by 1.21%, Consumer Durables up by 1.02% and IT up by 0.82%, while Healthcare down by 0.25%, Telecom down by 0.19%, Auto down by 0.13% and PSU down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 3.36%, Power Grid up by 2.84%, Hero MotoCorp up by 2.75%, ITC up by 2.36% and Asian Paints up by 1.83%. On the flip side, HDFC down by 1.86%, SBI down by 1.43%, HDFC Bank down by 1.18%, Bajaj Auto down by 0.88% and Tata Steel down by 0.70% were the top losers.

Meanwhile, with an aim to widen the tax base in the country, the government has fixed a target of adding 1.3 crore new income tax return filers during the current financial year (FY20) as against 1.1 crore new filer added during FY 2018-19.

For achieving this target, various measures are being taken including identification of potential non-filers through centralized Non-filer Monitoring System (NMS), formulation of region-specific strategies for identifying potential non-filers, issue of statutory notices to enforce compliance, simplification in income-tax returns and filing process to encourage voluntary filing, etc.

In Assessment Year 2018-19, there were 8.44 crore taxpayers. This included persons who filed a return of income for Assessment Year 2018-19 as well as persons who did not file a return of income but in whose case tax has been deducted at source during Financial Year 2017-18.

The CNX Nifty is currently trading at 11327.40, down by 18.80 points or 0.17% after trading in a range of 11315.95 and 11398.15. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.97%, Hero MotoCorp up by 2.77%, Power Grid up by 2.67%, ITC up by 2.50% and Titan up by 1.86%. On the flip side, HDFC down by 1.96%, Indiabulls Housing Finance down by 1.70%, SBI down by 1.55%, Adani Ports & SEZ down by 1.55% and Dr. Reddy’s Lab down by 1.42% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 204.09 points or 0.95% to 21,620.88, Hang Seng increased 81.45 points or 0.29% to 28,452.71, Shanghai Composite gained 10.71 points or 0.37% to 2,897.68, Straits Times advanced 10.66 points or 0.32% to 3,367.88, KOSPI rose 7.17 points or 0.34% to 2,100.51 and Taiwan Weighted strengthened 2.73 points or 0.02% to 10,947.26. On the flip side, Jakarta Composite lost 26.96 points or 0.42% to 6,406.59.

All European markets were trading in green; FTSE gained 54.46 points or 0.72% to 7,569.39, CAC rose 24.79 points or 0.45% to 5,591.81 and DAX was up by 148.29 points or 1.21% to 12,437.69.