Markets trade firm in early deals; Nifty above 12,100 mark

Indian equity benchmarks made optimistic start and are trading firm with gains of around half a percent each in early deals on Monday. Gains in Telecom, Energy and TECK shares supported the markets. Investors are eyeing manufacturing PMI data to be out later in the day. Traders took encouragement with Finance minister Nirmala Sitharaman’s statement that several significant steps in structural reforms have been taken in the past few months and responses/interventions addressing the needs of the economy will continue, indicating more relief measures could be on the anvil if so needed. Some support also came with report that festive season demand helped the government collect Rs 1.03 lakh crore in goods and services tax (GST) in the month of November, up 6% over the same month last year. During the month of November, the GST collection on domestic transactions witnessed a growth of 12%, highest during the year. Traders took note of Union Minister Dharmendra Pradhan’s statement that the current economic slowdown is temporary and a result of the ongoing global trade war between the US and China.

Market participants overlooked the government data showing that the Gross Domestic Product (GDP) growth for the second quarter (July-September) of the financial year 2019-20 dropped to 4.5%, the weakest pace in more than six years, due to weak consumer demand, slowing factory activities and negative impacts of the prolonged monsoon. Global cues also remained supportive with most of the Asian markets were trading in green as official data released over the weekend showed that China's factory activity returned to growth in November for the first time in seven months. A private survey of Chinese factory activity in November, also came in stronger than expected. The data helped offset worries that tensions between the US and China over Hong Kong could impact the ongoing trade talks.

Back home, telecom stocks were trading higher as telecom operators Bharti Airtel and Vodafone Idea decided to raise their tariff plans from December. Vodafone Idea announced new tariffs/plans for its prepaid products and services. New plans will be available across India starting December 03, 2019. Bharti Airtel soared 7.85%. Bharti Airtel also revised tariff plans for its mobile customers will be applicable from December 03 2019. Besides, the auto sector stocks were also in action, reacting to their monthly sales numbers. In scrip specific development, Yes Bank gained amid report that it will raise upto $2 billion through preferential allotment at a price in accordance with Chapter V of the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The BSE Sensex is currently trading at 41003.58, up by 209.77 points or 0.51% after trading in a range of 40835.64 and 41093.99. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.12%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Telecom up by 6.91%, Energy up by 2.25%, TECK up by 1.04%, Basic Materials up by 0.60% and Oil & Gas was up by 0.50%, while PSU down by 0.36%, Realty down by 0.31%, Consumer Durables down by 0.16%, FMCG down by 0.14% and Auto was down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 7.68%, Reliance Industries up by 3.54%, Bajaj Auto up by 0.93%, Indusind Bank up by 0.81% and Yes Bank up by 0.81%. On the flip side, Tech Mahindra down by 2.19%, ONGC down by 2.13%, Bajaj Finance down by 1.92%, Power Grid Corporation down by 0.96% and Sun Pharma Industries down by 0.76% were the top losers.

Meanwhile, with robust festive season demand, the Goods and Services Tax (GST) collection has witnessed an impressive recovery with a positive growth of 6% to Rs 1.03 lakh crore in November 2019 over November 2018 collection. The revenue collection has crossed the Rs 1 lakh crore mark after a gap of three months in November. The GST collection had stood at Rs 97,637 crore in the same month last year, while revenue collection under this head was Rs 95,380 crore in October.

Of gross Rs 1,03,492 crore in November, CGST is Rs 19,592 crore, SGST is Rs 27,144 crore, IGST is Rs 49,028 crore (including Rs 20,948 crore collected on imports) and Cess is Rs 7,727 crore (including Rs 869 crore collected on imports). The November 2019 collection is the third highest monthly collection since the introduction of GST, next only to April 2019 and March 2019 collections. This is the eighth time since the inception of GST in July 2017 that monthly collection has crossed the mark of Rs 1 lakh crore.

The GST collection on imports continued to see negative growth at (-)13%, but was an improvement over last month’s growth of (-)20%. The total number of GSTR 3B Returns filed for the month of October up to November 30, 2019 is 77.83 lakh. The government has settled Rs 25,150 crore to CGST and Rs 17,431 crore to SGST from IGST as regular settlement. The total revenue earned by Central Government and the State Governments after regular settlement in the month of November is Rs 44,742 crore for CGST and Rs 44,576 crore for the SGST.

The CNX Nifty is currently trading at 12106.95, up by 50.90 points or 0.42% after trading in a range of 12063.75 and 12137.15. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 7.27%, Grasim Industries up by 4.12%, Bharti Infratel up by 3.53%, Reliance Industries up by 3.27% and Zee Entertainment up by 1.57%. On the flip side, Bajaj Finance down by 2.07%, Tech Mahindra down by 2.07%, ONGC down by 2.05%, Eicher Motors down by 1.77% and Dr. Reddy’s Lab down by 1.37% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 257.66 points or 1.11% to 23,551.57, Hang Seng increased 122.13 points or 0.46% to 26,468.62, Jakarta Composite soared 72.68 points or 1.21% to 6,084.51, Shanghai Composite gained 10.02 points or 0.35% to 2,882.00, KOSPI rose 8.57 points or 0.41% to 2,096.53 and Straits Times advanced 7.62 points or 0.24% to 3,201.54. On the flip side, Taiwan Weighted was down by 2.95 points or 0.03% to 11,486.62.