Bourses manage to keep their heads above water in afternoon deals

Indian equity benchmarks managed to keep their heads above water in afternoon session, on the back of buying by funds and retail investors. Traders were taking support from Union Finance Minister Nirmala Sitharaman’s statement that the government is giving sector-specific solutions to fight the slowdown in economic growth. Traders also took a note of report that India jumped two levels to 7th position in the Brand Finance Nation ranking of 2019 despite the reduction in the overall economic growth due to slowdown in the manufacturing and construction sectors. However, gains were limited as investors remained cautious ahead of important September quarter earnings along with index of industrial production (IIP) data for August due today. On the sectoral front, select auto stocks were trading lower with data released by the Society of Indian Automobile Manufacturers (SIAM) indicating that domestic passenger vehicle sales dropped by 23.69 percent in September to 2,23,317 units, down from 2,92,660 units in the year-ago period, making it the 11th consecutive month of decline in vehicle off-take.

On the global front, Asian markets were trading in green, amid optimism over U.S.-China trade talks, which headed into their second day in Washington. Back home, the BSE Sensex is currently trading at 37952.23, up by 71.83 points or 0.19% after trading in a range of 37737.85 and 38345.41. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.05%, while Small cap index was up by 0.17%.

The top gaining sectoral indices on the BSE were Metal up by 1.07%, IT up by 0.91%, Realty up by 0.79%, TECK up by 0.77% and FMCG was up by 0.68%, while Oil & Gas down by 0.97%, Energy down by 0.92%, PSU down by 0.30%, Bankex down by 0.24% and Healthcare was down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.64%, ONGC up by 1.91%, HCL Tech up by 1.78%, Power Grid up by 1.68% and Hindustan Unilever was up by 1.56%. On the flip side, Yes Bank down by 7.08%, Indusind Bank down by 2.17%, Mahindra & Mahindra down by 1.54%, Sun Pharma down by 1.14% and Reliance Industries was down by 1.09% were the top losers.

Meanwhile, with the Goods and services tax (GST) collection falling to a 19-month low in September 2019, the government has formed a committee of officers to suggest urgent measures to boost collections, expand the tax base and check evasion. The panel comprises state GST commissioners of Maharashtra, Tamil Nadu, Uttar Pradesh, West Bengal and Punjab besides central government officials including Principal Commissioner of GST and Joint Secretary (Revenue).

The committee has been asked to consider a wide range of reforms so that a comprehensive list of suggestions may emerge. It has been asked to look into systemic changes in GST including checks and balances to prevent misuse. Also, it has been tasked to suggest measures to improve voluntary compliance as well as policy measures and changes in law needed.

GST collections dropped sharply to a 19-month low of Rs 91,916 crore in September, reflecting a widening slowdown in the economy triggered by shrinking consumer demand. This was the second straight month of decline in GST collections, which from July 1, 2017, amalgamated 17 different central and state levies, including excise duty, service tax and VAT.

The CNX Nifty is currently trading at 11250.20, up by 15.65 points or 0.14% after trading in a range of 11189.40 and 11362.90. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.57%, ONGC up by 1.87%, Hindalco up by 1.81%, Ultratech Cement up by 1.75% and Vedanta was up by 1.63%. On the flip side, Yes Bank down by 6.84%, Indian Oil Corporation down by 4.12%, Indusind Bank down by 2.01%, GAIL India down by 1.81% and BPCL was down by 1.66% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 246.89 points or 1.15% to 21,798.87, Hang Seng increased 604.32 points or 2.35% to 26,312.25, Shanghai Composite gained 27.83 points or 0.94% to 2,975.54, Jakarta Composite soared 61.77 points or 1.03% to 6,085.41, Straits Times advanced 21.73 points or 0.7% to 3,111.21 and KOSPI was up by 16.46 points or 0.81% to 2,044.61.