Heavy selling pressure pulls markets near intraday low points

A heavy selling pressure pulled Indian equity markets near their intraday low points in early noon deals, despite positive data of Indian services sector. India’s services sector expanded at its fastest pace in over 13 years in the month of July, aided by substantial improvement in international demand. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index jumped at 62.3 in July from 58.5 in June. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- surged to 61.9 in July as against 59.4 in June. Traders were cautious amid a private report stating that with inflation inching up, the Reserve Bank of India is likely to maintain the status quo on key interest rates. The six-member Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, will hold the meeting from August 8 to 10.

On the global front, Asian markets were trading mixed, even after China's service sector expanded at a faster pace at the start of the third quarter, underpinned by the solid growth in new business. The survey results released by S&P Global revealed that the Caixin services Purchasing Managers' Index rose more-than-expected to 54.1 in July from a five-month low of 53.9 in June. The expected reading was 52.5.

The BSE Sensex is currently trading at 65447.05, down by 335.73 points or 0.51% after trading in a range of 65442.82 and 65820.82. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.01%, while Small cap index was up by 0.07%.

The only gaining sectoral indices on the BSE were Healthcare up by 0.94% and Utilities up by 0.13%, while Realty down by 1.72%, Metal down by 1.35%, Bankex down by 0.81%, Oil & Gas down by 0.73% and Energy down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.86%, NTPC up by 0.89%, Larsen & Toubro up by 0.23%, JSW Steel up by 0.10% and HDFC Bank up by 0.09%. On the flip side, Tech Mahindra down by 1.88%, Titan Company down by 1.68%, ICICI Bank down by 1.58%, Ultratech Cement down by 1.52% and SBI down by 1.29% were the top losers.

Meanwhile, Finance minister Nirmala Sitharaman has said that the decision to impose a 28 per cent tax on the full face value of bets placed on online games will be implemented from October 1, 2023 even though there was demand for a review from states like Delhi and Goa. The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing online gaming.

Sitharaman said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value. Sitharaman, however, said other states ranging from Karnataka to Gujarat, Maharasthra and Uttar Pradesh wanted the decision taken at the last meeting to be implemented.

The minister said the new levy, after required changes are made in the central and state laws, is likely to come into effect from October 1. She added that there would be a review of the levy after six months of its implementation.

The CNX Nifty is currently trading at 19431.30, down by 95.25 points or 0.49% after trading in a range of 19429.30 and 19537.65. There were 15 stocks advancing against 34 stocks declining, while one stock remained unchanged on the index.

The top gainers on Nifty were Sun Pharma up by 2.02%, Adani Enterprises up by 1.45%, Divi's Laboratories up by 1.44%, Eicher Motors up by 1.38% and NTPC up by 0.94%. On the flip side, UPL down by 2.79%, Tech Mahindra down by 1.85%, Titan Company down by 1.76%, ONGC down by 1.68% and ICICI Bank down by 1.64% were the top losers. 

Asian markets were trading mixed; Nikkei 225 slipped 548.41 points or 1.71% to 32,159.28, KOSPI dropped 11.08 points or 0.43% to 2,605.39 and Straits Times fell 5.51 points or 0.17% to 3,319.51, while Shanghai Composite strengthened 15.77 points or 0.48% to 3,277.46, Jakarta Composite gained 57.2 points or 0.83% to 6,911.71 and Hang Seng advanced 84.05 points or 0.43% to 19,601.43.