Markets continue weak trade in early noon session

Indian bourses continued their weak trade in early noon session with Sensex and Nifty trading down by 64 and 48 points respectively, mirroring depressed sentiments of other Asian markets. Stocks from Auto, Metal and Telecom counters were trading lower, while IT, Bankex and TECK counters were supporting the markets. Cautiousness prevailed in the markets with the latest depositories data showing that reversing their five-month buying trend, overseas investors have pressed the exit button in July and pulled out a net Rs 3,758 crore from the Indian capital markets on account of multiple headwinds, including the super-rich tax announced in Budget 2019-20. Foreign portfolio investors (FPIs) pulled out a net sum of Rs 14,382.59 from equities during July 1-26, but invested Rs 10,624.15 crore in the debt segment, taking the total net outflow to Rs 3,758.44 crore. Meanwhile, the government has proposed amendments to Motor vehicle norms to allow scrapping of vehicles older than 15 years in a bid to spur adoption of electrical vehicles. For conducting test and the grant and renewal of fitness certificate for motor vehicles older than 15 years, the fees have also been increased.

On the global front, Asian markets were trading in red as markets count down to a likely cut in US interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline. Back on street, in scrip specific developments, Havells India declined on reporting 16% fall in Q1 consolidated net profit. However, ICICI Bank zoomed on reporting many fold jump in Q1 consolidated net profit.

The BSE Sensex is currently trading at 37818.52, down by 64.27 points or 0.17% after trading in a range of 37754.21 and 38043.22. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.65%, while Small cap index was down by 0.62%.

The few gaining sectoral indices on the BSE were IT up by 0.57%, Bankex up by 0.46% and TECK up by 0.11%, while Auto down by 2.94%, Metal down by 2.63%, Telecom down by 2.59%, Basic Materials down by 2.06% and Consumer Discretionary was down by 1.46% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 4.07%, HCL Technologies up by 0.89%, Infosys up by 0.84%, Indusind Bank up by 0.63% and TCS was up by 0.62%. On the flip side, Tata Motors - DVR down by 5.50%, Tata Motors down by 5.16%, Vedanta down by 4.51%, Bajaj Auto down by 4.45% and Hero MotoCorp was down by 3.39% were the top losers.

Meanwhile, with an aim to accelerate the adoption of eco-friendly mobility solutions, the high-powered Goods and Services Tax (GST) Council has decided to reduce the tax rate on electric vehicles (EVs) to 5% from the existing 12%. The finance ministry, in its 36th meeting of the GST Council, said that the new GST rate on EVs will be effective from August 1. Additionally, the tax rate on chargers or charging stations for EVs has been slashed to 5% from 18%. The council also approved GST exemption for hiring of electric buses (of carrying capacity of more than 12 passengers) by local authorities from August 1.

The GST Council also took certain decisions regarding changes in GST law. The last date for filing of intimation, in Form GST CMP-02, for availing the option of payment of tax (by exclusive supplier of services) has been extended from July 31 to September 30. Further, the last date for furnishing statement containing the details of the self-assessed tax in Form GST CMP-08 for the June quarter (by taxpayers under composition scheme) has been extended to August 31. The earlier deadline was July 31.

The government has been taking initiative to popularise environment friendly EVs. In the Union Buget 2019-20, the government provided additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase EVs. Besides, customs duty has been exempted on certain parts of EVs to further incentivise e-mobility in the country. The Centre has also approved Rs 10,000 crore to encourage faster adoption of EVs in the country under the FAME II scheme, which aims to encourage faster adoption of such vehicles by right incentives and charging infrastructure.

The CNX Nifty is currently trading at 11235.90, down by 48.40 points or 0.43% after trading in a range of 11224.90 and 11310.95. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 4.03%, HCL Technologies up by 0.90%, Infosys up by 0.89%, Indusind Bank up by 0.60% and TCS was up by 0.59%. On the flip side, Indiabulls Housing down by 7.50%, Tata Motors down by 5.16%, Grasim Industries down by 5.11%, JSW Steel down by 5.01% and Vedanta was down by 4.63% were the top losers.

All Asian markets were trading in red; Hang Seng decreased 426.09 points or 1.5% to 27,971.65, Nikkei 225 slipped 79.95 points or 0.37% to 21,578.20, Straits Times trembled 25.92 points or 0.77% to 3,337.84, Jakarta Composite lost 39.07 points or 0.62% to 6,286.17, Taiwan Weighted dropped 6.25 points or 0.06% to 10,885.73, KOSPI fell 35.15 points or 1.7% to 2,031.11 and Shanghai Composite was down by 10.91 points or 0.37% to 2,933.63.