Markets at day's low on incremental selling pressure

Continuing its negative momentum, the local equity markets were now trading at day’s low points in afternoon session, on account of weak macroeconomic data. India's GDP growth slipped to an over six-year low of 5 per cent in the June quarter of 2019-20, hit by a sharp deceleration in manufacturing output and subdued farm sector activity. Market sentiment also took a hit as country's manufacturing sector activity declined to its 15-month low in August, owing to slower increases in sales, output and employment. Traders also took a note of industry body Ficci’s statement that India's economic growth dropping to an over six-year low of 5 percent in April-June 2019 is indicating a ‘significant deceleration’ in both investment and consumer demand. On the sectoral front, majority of sugar stocks were trading in red after rating agency ICRA said it will be challenging to achieve 6 million tonne of sugar exports in 2019-20 marketing year starting October, amid subdued global prices. In the currency front, after a weak start, the Indian rupee slipped further and trading near day's low level at 72.34 per dollar in early trade, down 92 paise from previous close.  

On the global front, Asian markets were trading mostly in red, amid uncertainty over the next steps in US-China trade tensions, with markets adopting a risk-off hue. Back home, the BSE Sensex is currently trading at 36871.77, down by 461.02 points or 1.23% after trading in a range of 36849.56 and 37188.38. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.99%, while Small cap index was down by 0.65%.

The only gaining sectoral indices on the BSE were IT up by 0.56% and TECK was up by 0.31%, while Basic Materials down by 1.83%, Bankex down by 1.82%, Metal down by 1.82%, PSU down by 1.67% and Capital Goods was down by 1.66% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.93%, HCL Tech up by 1.15%, Hero MotoCorp up by 0.82%, TCS up by 0.74% and Infosys was up by 0.42%. On the flip side, ICICI Bank down by 3.24%, Tata Motors down by 3.04%, Tata Steel down by 3.00%, HDFC down by 2.91% and Tata Motors - DVR was down by 2.62% were the top losers.

Meanwhile, in a clear sign of an economic slowdown, the finance ministry has indicated that Goods and Services Tax (GST) collections slipped below Rs 1 lakh crore mark to Rs 98,202 crore in the month of August 2019. The tax collection was at Rs 1.02 lakh crore in the previous month. However, total GST mop-up for August 2019 was 4.5 percent higher than the Rs 93,960 crore collected in August 2018.

The Ministry has pointed out that this is the second time during this year that the revenue collection from the GST has slipped below the Rs 1 lakh crore mark. First, it happened in June when the collection was Rs 99,939 crore. Central GST collections stood at Rs 17,733 crore, State GST Rs 24,239 crore, and Integrated GST Rs 48,958 crore (including Rs 24,818 crore collected on imports) during August this year. Cess collection stood at Rs 7,273 crore (including Rs 841 crore collected on imports). Besides, the number of sales return or GSTR-3B filed for the month of July up to end-August totaled 75.80 lakh.

Meanwhile, for the current financial year (FY20), the Centre proposes to collect Rs 6.10 lakh crore from CGST and Rs 1.01 lakh crore as compensation cess. The IGST balance has been pegged at Rs 50,000 crore. The CGST collection in 2018-19 was Rs 4.25 lakh crore, while compensation cess was over Rs 97,000 crore.

The CNX Nifty is currently trading at 10885.30, down by 137.95 points or 1.25% after trading in a range of 10878.40 and 10967.50. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.29%, Britannia Industries up by 1.47%, HCL Tech up by 1.19%, Hero MotoCorp up by 0.79% and TCS was up by 0.65%. On the flip side, Indian Oil Corporation down by 3.31%, Ultratech Cement down by 3.31%, ICICI Bank down by 3.10%, Tata Motors down by 3.08% and Tata Steel was down by 2.99% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 77.84 points or 0.3% to 25,548.71, Taiwan Weighted dropped 76.64 points or 0.72% to 10,558.21, KOSPI fell 3.50 points or 0.18% to 1,965.69 and Jakarta Composite was down by 0.65 points or 0.01% to 6,289.90.

On the flip side, Shanghai Composite gained 2.24 points or 0.08% to 2,926.35, Nikkei 225 surged 4.97 points or 0.02% to 20,625.16 and Straits Times was up by 7.82 points or 0.25% to 3,090.78.