HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Local equities continue to trade higher in morning deals
Mar-20-2019

Local equity benchmarks have gathered some pace and continued to trade higher in morning session on the back of increased buying by funds. High beta indices like Realty and IT were, as usual, inched higher with the up-move on the benchmarks. Among heavy-weights Infosys, Larsen & Toubro and HCL Tech exhibited a smart performance. Sentiment was buoyed as the Reserve Bank governor Shaktikanta Das underlined the need for sticking to the fiscal roadmap by adopting a commonly agreed expenditure code-based spending plan to address the socioeconomic challenges. He also advocated giving permanent status to the finance commission. Traders shrugged off a report that there is a 70% chance of El Nino climate cycle forming towards the second half of this year, a forecast that does not augur well for the monsoon season in India. Besides, economists raised concerns over a sharp slowdown in the Indian economy and pitched for a monetary policy boost to support growth at a meeting with the RBI chief on March 19.

On the global front, Asian markets were trading mixed, with nervous investors keeping tabs on developments in the China-US trade talks and the BREXIT saga, while awaiting the conclusion of a key Federal Reserve meeting. Back home, the GST Council has allowed builders to choose between the old and new GST regimes for projects that will remain unfinished as on March 31, removing the fear among these firms that they might lose accumulated input tax credit for under-construction projects.

The BSE Sensex is currently trading at 38465.98, up by 102.51 points or 0.27% after trading in a range of 38316.21 and 38472.51. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.10%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were Realty up by 1.59%, IT up by 1.36%, Capital Goods up by 1.03%, TECK up by 1.01% and Industrials was up by 0.51%, while Oil & Gas down by 1.34%, PSU down by 0.98%, Utilities down by 0.57%, Auto down by 0.37% and Consumer Disc was down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.53%, Larsen & Toubro up by 1.34%, HCL Tech up by 1.34%, Vedanta up by 0.93% and HDFC was up by 0.76%. On the flip side, ONGC down by 2.23%, NTPC down by 1.81%, Coal India down by 1.11%, Bajaj Auto down by 1.09% and Kotak Mahindra Bank was down by 0.94% were the top losers.

Meanwhile, with an aim to boost real estate sector, the Goods and Services Tax (GST) Council has approved a transition plan for the implementation of new tax structure for housing units. Consequently, it has decided that builders can pick between paying 12% for non-affordable houses with input tax credit (ITC) benefits or 5% without the tax rebates for under-construction houses. Likewise, for affordable housing projects, builders can choose between 8% with tax rebates or 1% without it. The new rates, without ITC benefits, will apply for all projects that begin construction only after April 01, 2019.

The meeting deliberated on the transition provision and related issues for the implementation of lower GST rates for the real estate sector. Reasonable time for transition will be given to developers in consultation with states.

In its last meeting on February 24, 2019, the Council had lowered the GST rate to 1% from 8% for affordable houses and to 5% from 12% for other houses. The new rates will kick in from April 01, 2019, but builders will not be eligible to claim ITC benefits after the lower duties come into force.

The CNX Nifty is currently trading at 11546.05, up by 13.65 points or 0.12% after trading in a range of 11511.50 and 11556.10. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 3.57%, Infosys up by 2.32%, Hindalco up by 2.30%, Wipro up by 1.63% and Dr. Reddy’s Lab was up by 1.56%. On the flip side, HPCL down by 4.64%, Zee Entertainment down by 3.75%, BPCL down by 3.26%, Indian Oil Corporation down by 2.74% and ONGC was down by 2.26% were the top losers.

Asian markets were trading mixed; Hang Seng decreased 138.58 points or 0.47% to 29,327.70, Shanghai Composite declined 31.81 points or 1.03% to 3,059.17, Straits Times trembled 21.56 points or 0.67% to 3,199.36 and KOSPI was down by 20.67 points or 0.95% to 2,156.95.

On the flip side, Jakarta Composite soared 4.33 points or 0.07% to 6,484.61, Nikkei 225 surged 12.60 points or 0.06% to 21,579.45 and Taiwan Weighted was up by 20.04 points or 0.19% to 10,532.36.

  RELATED NEWS >>