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Markets at day's low on incremental selling pressure
Sep-19-2019

Continuing its negative momentum, the local equity markets were now trading at day’s low points in afternoon session, on the back of sustained selling activities by market-participants. The mood on the street remained cautious with report that as against a steep 17.5 percent higher tax collection budgeted for FY20, the government could mop-up only 4.7 percent more so far this year, with the direct tax kitty growing to Rs 5.50 lakh crore as of September 17, up from Rs 5.25 lakh crore a year-ago. The lower mop-up reflects the deepening slump in demand and overall growth. The sentiment also remained muted with the India Meteorological Department’s (IMD) report that monsoon rains in India in the week to September 18 were above average for a third straight week, with floods hitting many districts in the central parts of the country and damaging crops such as soybean and pulses. Barring Telecom, all other BSE sectoral indices were trading in the negative zone. On the global front, Asian markets were trading mixed, after the U.S. Federal Reserve signalled a higher bar to further easing, while the Bank of Japan also held off from offering more stimulus as some had hoped.

The BSE Sensex is currently trading at 36232.84, down by 331.04 points or 0.91% after trading in a range of 36200.33 and 36613.93. There were 6 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.75%, while Small cap index was down by 0.87%.

The only gaining sectoral index on the BSE was Telecom up by 0.95%, while Metal down by 1.62%, IT down by 1.40%, TECK down by 1.30%, Basic Materials down by 1.25% and Oil & Gas was down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.89%, Bharti Airtel up by 1.49%, Asian Paints up by 0.98%, Tata Motors - DVR up by 0.71% and HDFC was up by 0.21%. On the flip side, Yes Bank down by 8.19%, Tata Steel down by 3.49%, Vedanta down by 2.38%, Indusind Bank down by 2.34% and ICICI Bank was down by 2.28% were the top losers.

Meanwhile, the Department for Promotion of Industry and Internal Trade (DPIIT), under the commerce and industry ministry, has notified the recent decisions on liberalising foreign direct investment (FDI) regulations in single brand retail trading, coal mining and contract manufacturing. It has also notified the decision to allow 26 percent FDI in digital media, a move over which certain industry and experts have raised issues.

According to the DPIIT, 100 percent FDI is allowed for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957. Amending FDI norms for the manufacturing sector, it said foreign investment in 'manufacturing' sector is under automatic route. It added that manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on principal to principal or principal to agent basis.

For single brand retail trading, the Department said retail trading through e-commerce can also be undertaken prior to opening of brick and mortar stores, subject to the condition that the company opens brick and mortar stores within two years from date of start of online retail. It added that a single brand retail company with FDI selling Indian brands now will not have to follow the condition that such firm should sell products under the same brand internationally.

The CNX Nifty is currently trading at 10738.50, down by 102.15 points or 0.94% after trading in a range of 10732.70 and 10845.20. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 1.97%, Bharti Airtel up by 1.61%, Britannia Industries up by 1.26%, Asian Paints up by 0.95% and Coal India was up by 0.31%. On the flip side, Yes Bank down by 8.81%, Zee Entertainment down by 5.26%, Tata Steel down by 3.75%, Indiabulls Housing Finance down by 3.02% and Vedanta was down by 2.64% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 83.74 points or 0.38% to 22,044.45, KOSPI rose 9.62 points or 0.46% to 2,080.35, Shanghai Composite gained 6.75 points or 0.23% to 2,992.41 and Straits Times was up by 3.10 points or 0.1% to 3,169.94. On the flip side, Jakarta Composite lost 24.76 points or 0.39% to 6,251.87, Taiwan Weighted dropped 34.75 points or 0.32% to 10,894.70 and Hang Seng was down by 363.51 points or 1.36% to 26,390.61.

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