Markets come off from high levels in late afternoon session

Indian equity markets came off from high levels in late afternoon session. Currently, markets traded near neutral lines amid the ongoing June quarter (Q1FY25) results season. Markets managed to trade in green as commerce ministry in its latest data has showed that India's merchandise export increased by 2.56 per cent to $35.20 billion in June 2024 as compared to $34.32 billion in June last year. On the global front, Asian markets were trading mixed as investors grappled with weak economic data from China and waited to see the outcome of a top Communist Party policy meeting in Beijing. European markets were trading lower as the assassination attempt on former President Donald Trump raised political uncertainty. Economists have warned that a Trump victory could trigger a 1 percent GDP hit to the eurozone economy, with Germany, Italy, and Finland most affected.

The BSE Sensex is currently trading at 80671.79, up by 6.93 points or 0.01% after trading in a range of 80662.16 and 80898.30. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.16%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Realty up by 1.68%, FMCG up by 0.87%, Telecom up by 0.72%, TECK up by 0.70% and Metal was up by 0.46%, while Capital Goods down by 0.62%, Industrials down by 0.51%, PSU down by 0.38%, Power down by 0.36% and Utilities was down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.23%, Bharti Airtel up by 1.76%, Asian Paints up by 1.28%, Infosys up by 1.16% and Mahindra & Mahindra up by 0.98%. On the flip side, Kotak Mahindra Bank down by 1.58%, Reliance Industries down by 1.22%, Ultratech Cement down by 1.02%, NTPC down by 0.71% and SBI down by 0.41% were the top losers.

Meanwhile, with an aim to making India a global aviation hub, the government has introduced a uniform Integrated Goods and Services Tax (IGST) rate of 5% on all aircraft and aircraft engine parts, effective from July 15, 2024. This decision marks a significant milestone for the domestic Maintenance, Repair, and Overhaul (MRO) industry.

Commenting on this development, Union Civil Aviation Minister, Kinjrapu Rammohan Naidu noted that previously, the varying GST rates of 5%,12%, 18%, and 28% on aircraft components created challenges, including an inverted duty structure and GST accumulation in MRO accounts. This new policy eliminates these disparities, simplifies the tax structure, and fosters growth in the MRO sector.

The Minister further emphasized the role of Prime Minister Narendra Modi's visionary leadership in making this change possible. He said ‘Under the guidance of Prime Minister Modi, we are committed to the Atma Nirbhar Bharat initiative. His support for transforming India into a leading aviation hub has been crucial in driving this policy forward.’ 

Union Minister also applauded the efforts of the Ministry of Civil Aviation, Ministry of Finance and other stakeholders who have worked diligently to achieve this policy adjustment recommended by the GST Council in its 53rd meeting on June 22, 2024. The uniform 5% IGST rate aims to reduce operational costs, resolve tax credit issues, and attract investment.

The CNX Nifty is currently trading at 24609.35, up by 22.65 points or 0.09% after trading in a range of 24599.75 and 24661.25. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.03%, BPCL up by 2.97%, Hindustan Unilever up by 2.97%, Tata Consumer up by 2.45% and HDFC Life Insurance up by 2.32%. On the flip side, Dr. Reddy's down by 2.01%, Reliance Industries down by 1.59%, Kotak Mahindra Bank down by 1.55%, Hindalco down by 1.45% and Ultratech Cement down by 1.26% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 117.89 points or 0.49% to 23,997.25, Nikkei 225 surged 84.4 points or 0.2% to 41,275.08, KOSPI increased 5.17 points or 0.18% to 2,866.09 and Shanghai Composite was up by 2.29 points or 0.08% to 2,976.30. On the flip side, Straits Times fell 10.79 points or 0.31% to 3,489.10, Jakarta Composite plunged 59.2 points or 0.81% to 7,219.66 and Hang Seng was down by 287.96 points or 1.62% to 17,727.98.

European markets were trading lower; UK’s FTSE 100 decreased 26.62 points or 0.33% to 8,156.34, France’s CAC fell 42.41 points or 0.56% to 7,590.30 and Germany’s DAX was down by 85.49 points or 0.46% to 18,505.40.