Sensex, Nifty remain under grip of bears

Indian equity benchmarks remained under a grip of bears in late afternoon session, on the back of mixed cues from European markets. In line with the larger peers, the broader indices were too lingering under pressure in late noon deals, while Vedanta performed the worst among all major industry leaders on the BSE. Sentiments remained pessimistic as the finance ministry in its latest data showed that Goods and services tax (GST) collection dropped to a 19-month low of Rs 91,916 crore in September 2019 witch was 2.67% lower than the collection in the corresponding month last year at Rs 94,442 crore and 6.4% below the last month’s figure of Rs 98,202 crore. The street failed to take any sense of relief with, Finance Minister Nirmala Sitharaman’s statement that the Insolvency and Bankruptcy Code has improved business climate in the country by making it easier for enterprises to exit in case of difficulties.

On the global front, European markets were trading mixed, after the euro area private sector expanded at the slowest pace in more than six years in September. The final data from IHS Markit showed that the final composite output index fell to 50.1 in September from 51.9 in August. The reading was below the flash estimate of 50.4. Asian markets were trading in red.

The BSE Sensex is currently trading at 38076.73, down by 228.68 points or 0.60% after trading in a range of 37957.56 and 38310.93. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.43%, while Small cap index was down by 0.45%.

The top gaining sectoral indices on the BSE were Realty up by 1.33%, Oil & Gas up by 1.28%, Energy up by 0.54%, Auto up by 0.31% and Consumer Durables up by 0.13%, while Metal down by 2.85%, Telecom down by 1.86%, Basic Materials down by 1.70%, Bankex down by 1.03% and Capital Goods down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 27.81%, Tata Motors - DVR up by 6.89%, Tata Motors up by 6.63%, HCL Tech. up by 1.48% and ITC up by 1.31%. On the flip side, Vedanta down by 4.13%, Tata Steel down by 2.87%, Indusind Bank down by 2.69%, Kotak Mahindra Bank down by 2.12% and HDFC Bank down by 1.88% were the top losers.

Meanwhile, lauding the Insolvency and Bankruptcy Code (IBC) on its third anniversary, Finance Minister Nirmala Sitharaman has said that it has improved business climate in the country by making it easier for enterprises to exit in case of difficulties. She also added that very constant real time changes were brought in by IBC.

Finance Minister noted that IBC has created a set of professionals who help, advise and also show the path through which businesses can exit if situations are adverse. Besides, she said ‘There is scope for enterprise in this country really wanting to benefit from such facilitating environment. Banks feel very relieved that there is a mechanism now. Today, much before admission, a lot of them are getting resolved.’

Sitharaman further said ‘We have reached a stage where we can stand up for international standards in ease of doing business and ease of doing business is the one which is also going to help us very clearly for people wanting to do business and not fear doing business because you are not going to get into this and not know the way to come out.’

The CNX Nifty is currently trading at 11296.25, down by 63.65 points or 0.56% after trading in a range of 11257.35 and 11370.40. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 27.97%, Tata Motors up by 6.63%, Zee Entertainment up by 5.79%, BPCL up by 5.65% and Indian Oil Corporation up by 2.02%. On the flip side, Vedanta down by 4.13%, Coal India down by 3.97%, Hindalco down by 3.72%, Tata Steel down by 3.06% and Indusind Bank down by 3.06% were the top losers.

All Asian market were trading in red; Taiwan Weighted dropped 71.97 points or 0.66% to 10,875.91, Hang Seng decreased 99.74 points or 0.38% to 25,942.95, Nikkei 225 slipped 436.87 points or 2.01% to 21,341.74, Straits Times trembled 28.33 points or 0.91% to 3,075.12 and Jakarta Composite was 20.47 points or 0.34% to 6,034.96.

European markets were trading mixed; FTSE lost 44.90 points or 0.63% to 7,077.64, while CAC was up by 35.84 points or 0.66% to 5,458.61.