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EQUITY
Post Session: Quick Review
Sep-19-2019

Indian equity benchmarks remained under pressure throughout the session and ended with losses of over a percent. Key indices kicked off session on a weak note, as traders were concerned 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. Anxiety also persisted 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. Selling got intensified during final hours of trade, as traders reacted negatively to a private report that India’s slowdown and a simmering shadow banking crisis is putting Prime Minister Narendra Modi’s goal of crafting a $5 trillion economy by 2025 at risk. Traders failed to get relief with Niti Aayog CEO Amitabh Kant’s statement that the government is doing everything possible to turn around the Indian economy and bring it back to a high trajectory growth path.

On the global front, Asian markets ended mostly lower on Thursday, after the Federal Reserve cut US interest rates but investors were left unsure about its next move. European markets were trading in green. Back home, aviation sector were in focus with Data released by the DGCA showing that domestic airlines carried 943.58 lakh passengers during January to August as against 913.95 lakh during the corresponding period of previous year, marking an annual growth of 3.24 percent and monthly growth of 3.87 percent.  Domestic air passenger traffic growth stood at 3.87 percent in August compared to 3.01 percent in July.

The BSE Sensex ended at 36085.05, down by 478.83 points or 1.31% after trading in a range of 35987.80 and 36613.93. There were 5 stocks advancing against 26 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index fell 1.13%, while Small cap index was down by 1.45%. (Provisional)

The top losing sectoral indices on the BSE were Energy down by 2.04%, Oil & Gas down by 2.03%, Bankex down by 1.76%, Realty down by 1.54% and Basic Materials down by 1.47%, while there were no gaining indices on BSE sectoral front. (Provisional)

The top gainers on the Sensex were Tata Motors up by 2.17%, Tata Motors - DVR up by 0.98%, HDFC Bank up by 0.88%, Bharti Airtel up by 0.22% and Asian Paints up by 0.04%. (Provisional)

On the flip side, Yes Bank down by 15.83%, Indusind Bank down by 3.72%, Tata Steel down by 3.51%, ICICI Bank down by 3.23% and Reliance Industries down by 2.30% were the top losers. (Provisional)

Meanwhile, the government’s total direct tax collection has increased to Rs 5.50 lakh crore as of September 17, 2019 for the fiscal year 2019-20 (FY20), up from Rs 5.25 lakh crore a year-ago. Though, as against a steep 17.5 percent higher tax collection budgeted for the full year, the government could mop-up only 4.7 percent more so far in FY20. The lower mop-up reflects the deepening slump in demand and overall growth. In the first quarter the Gross Domestic Product (GDP) slowed to a six-year low of 5 percent.

Of the Rs 5.50 lakh crore collections, advance tax rose a tepid 7.3 percent to Rs 2.20 lakh crore from Rs 2.05 crore. Besides, net tax collection is around Rs 4.5 lakh crore as compared to Rs 4.25 lakh crore as of date. April-September advance tax collection rose to Rs 2.20 lakh crore from Rs 2.05 lakh crore. Advance corporation tax rose only 3.5 percent, while the personal income tax paid in advance rose 7.5 percent.

The numbers are disturbing for the government as it has already used up as much as 77 percent of its budgeted fiscal deficit for the full year by July itself. This is 1.4 percentages point higher than the comparable period last year. Fiscal deficit crossed 77 percent of the annual target in July at Rs 5,47,605 crore, against a target of Rs 7,03,760 crore for the full year. In FY19, direct tax collection was Rs 50,000 crore short of the Rs 12 lakh crore target.

The CNX Nifty ended at 10696.75, down by 143.90 points or 1.33% after trading in a range of 10670.25 and 10845.20. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 2.26%, Coal India up by 0.88%, HDFC Bank up by 0.66%, UPL up by 0.50% and Bharti Airtel up by 0.42%. (Provisional)

On the flip side, Yes Bank down by 15.91%, Zee Entertainment down by 7.81%, Indiabulls Housing Finance down by 4.88%, Indusind Bank down by 3.75% and Tata Steel down by 3.53% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 27.64 points or 0.38% to 7,341.69, France’s CAC rose 22.60 points or 0.4% to 5,643.25 and Germany’s DAX gained 13.75 points or 0.11% to 12,403.37.

Asian markets ended mostly lower on Thursday after the Federal Reserve signaled a higher bar to further policy easing. Meanwhile, the Bank of Japan kept its monetary policy unchanged and the Bank said that it would not hesitate to take additional easing measures if needed. Investors are waited to see whether China would lower its new lending reference rate on Friday following the Fed's rate cut and the easing by the European central bank. Seoul shares ended higher as Saudi Arabia's rapid recovery efforts helped ease concerns over oil supply and investors pinned hopes for progress in upcoming Sino-US trade talks.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

2,999.28
13.62
0.46

Hang Seng

26,468.95
-285.17
-1.07

Jakarta Composite

6,244.47
-32.16
-0.51

KLSE Composite

1,596.28

-3.21

-0.20

Nikkei 225

22,044.45
83.74
0.38

Straits Times

3,158.80
-8.04
-0.25

KOSPI Composite

2,080.35
9.62
0.46

Taiwan Weighted

10,894.70
-34.75
-0.32

 

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