Indian equity benchmarks ended flat with a negative bias on Tuesday. Key indices made a positive start of the day, taking support with the government data showing that the country's exports rose marginally by 0.67 per cent year-on-year to $27.93 billion in February, growing for the third consecutive month, even as trade deficit widened to $12.62 billion. Imports rose by 6.96 per cent to $40.54 billion in the month. Indices remained higher in the first half of the session, as the finance ministry said it has released the full Rs 1.10 lakh crore estimated GST compensation shortfall to the states with the release of final weekly installment of Rs 4,104 crore. With the release of the 20th installment, 100 per cent of the total estimated GST compensation shortfall of Rs 1.10 lakh crore for the year 2020-21 has now been released to the states and UTs with Legislative Assembly. Out of this, an amount of Rs 1,01,329 crore has been released to the states and an amount of Rs 8,879 crore has been released to the three UTs with Legislative Assembly.
However, markets cut gains during the second half of the trading session to trade volatile and finally ended the day in red terrain, amid Credit rating agency ICRA’s report stated that the states may face a shortfall of Rs 2.7-3 lakh crore as Goods and Services Tax (GST) compensation from the Centre next fiscal. Out of that amount, the shortfall from cess collections will be at Rs 1.6-2 lakh crore. Sentiments were negative, as India reported 24,366 fresh Covid-19 cases on Monday pushing the overall tally to 11,409,524, according to Worldometer. The death toll from the deadly infection jumped to 158,892. Besides, a report stated that Cinema halls, hotels, restaurants and offices except those related to health and essential services in Maharashtra will function at 50 percent capacity till March 31.
On the global front, European markets were trading higher, as German online fashion retailer Zalando and carmaker Volkswagen jumped following upbeat earnings forecasts, while investors awaited the U.S. Federal Reserve's views on a recent pick-up in inflation. Asian markets finished mostly in green on Tuesday, after export prices in South Korea were up 3.1 percent on year in February, the Bank of Korea said on Tuesday - accelerating from 2.2 percent in January. On a yearly basis, export prices rose 0.2 percent after sinking 1.9 percent in the previous month. Individually, prices for agricultural, forestry and marine exports rose 0.7 percent on month and fell 7.0 percent on year. Manufactured product prices gained 3.1 percent on month and 0.2 percent on year.
The BSE Sensex ended at 50363.96, down by 31.12 points or 0.06% after trading in a range of 50289.44 and 50857.98. There were 15 stocks advancing against 15 stocks declining on the index. (Provisional)
The broader indices ended in green; the BSE Mid cap index was up by 0.40%, while Small cap index was up by 0.32%. (Provisional)
The top gaining sectoral indices on the BSE were IT up by 1.35%, TECK up by 1.08%, Telecom up by 0.99%, FMCG up by 0.92% and Consumer Disc up by 0.38%, while Bankex down by 1.03%, Metal down by 0.65%, Realty down by 0.64%, Capital Goods down by 0.49% and Consumer Durables down by 0.42% were the top losing indices on BSE. (Provisional)
The top gainers on the Sensex were Asian Paints up by 4.87%, Dr. Reddys Lab up by 2.44%, Hindustan Unilever up by 1.48%, HCL Tech. up by 1.43% and TCS up by 1.38%. On the flip side, Larsen & Toubro down by 1.56%, ICICI Bank down by 1.38%, SBI down by 1.37%, HDFC Bank down by 1.07% and HDFC down by 0.96% were the top losers. (Provisional)
Meanwhile, in order to meet the GST compensation shortfall, the Ministry of Finance, Department of Expenditure has released the final weekly instalment of Rs 4,104 crore to the States. Out of this, an amount of Rs 4,086.97 crore has been released to 23 States and an amount of Rs 17.03 crore has been released to the 3 UTs with Legislative Assembly.
With the current release, 100 percent of the total estimated GST compensation shortfall of Rs.1.10 lakh crore for the year 2020-21 has now been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs.101,329 crore has been released to the States and an amount of Rs.8,879 crore has been released to the 3 UTs with Legislative Assembly.
The amount released this week was the 20th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.9288%. The total amount of Rs.1,10,208 crore has been borrowed by the Central Government through the special borrowing window at an weighted average interest rate of 4.8473%.
The CNX Nifty ended at 14910.45, down by 19.05 points or 0.13% after trading in a range of 14890.65 and 15051.60. There were 19 stocks advancing against 31 stocks declining on the index. (Provisional)
The top gainers on Nifty were Asian Paints up by 4.82%, Dr. Reddys Lab up by 2.47%, Hindustan Unilever up by 1.50%, HCL Tech. up by 1.50% and TCS up by 1.43%. On the flip side, Tata Steel down by 1.68%, Cipla down by 1.64%, Larsen & Toubro down by 1.48%, BPCL down by 1.45% and ICICI Bank down by 1.42% were the top losers. (Provisional)
European markets were trading higher; UK’s FTSE 100 increased 41.10 points or 0.61% to 6,790.80, France’s CAC increased 13.15 points or 0.22% to 6,049.12 and Germany’s DAX was up by 71.25 points or 0.49% to 14,532.67.
Asian markets finished mostly in green on Tuesday bolstered by the optimism about potential stimulus driven global economic recovery from the damage caused by the covid pandemics .The investors are widely expecting that the Federal Reserve will tackle the inflation concerns and rising bond yields by taking necessary measures at its meeting this week. The Central Bank is expected to give updated economic and interest rate projections along side its policy decisions. China's Shanghai rebounded with the advancing of stocks in consumer staples and financial sectors. Japan is also awaiting decisions from the Bank of Japan a day later.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,446.73 | 26.78 | 0.78 |
Hang Seng | 29,027.69 | 193.93 | 0.67 |
Jakarta Composite | 6,309.70 | -14.56 | -0.23 |
KLSE Composite | 1,623.96 | 3.04 | 0.19 |
Nikkei 225 | 29,921.09 | 154.12 | 0.52 |
Straits Times | 3,105.51 | -0.49 | -0.02 |
KOSPI Composite | 3,067.17 | 21.46 | 0.70 |
Taiwan Weighted | 16,313.16 | 63.83 | 0.39 |
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