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Bourses witness volatility on Monday
Jun-24-2019

Indian equity bourses witnessed volatility on Monday, with Sensex and Nifty closing lower by 71.53 and 24.45 points, respectively. The start of day was cautious, amid Finance Ministry’s report showing that government's total liabilities reached Rs 84.68 lakh crore at the end of March 2019, up 1.5 per cent over the preceding quarter. The total liabilities stood at Rs 83.40 lakh crore at end-December 2018. The street were also cautious, as the Federation of Indian Chamber of Commerce and Industry (FICCI) in its quarterly survey found that sentiment in the manufacturing sector remains subdued as the proportion of respondents reporting higher output growth during Q1 (April-June) of 2019-20 has dropped to 41 percent as against 54 percent  in January-March (Q4) of 2018-19. 

Key indices staged recovery during noon deals but failed to sustain it and ended the session in red terrain, on the back of mix cues from global markets. Market participants overlooked a report stating that investments in the Indian capital market through participatory notes increased by nearly Rs 1,400 crore to Rs 82,619 crore till May-end, a gain of 1.72 percent over the previous month. The street also paid no heed towards Niti Aayog’s statement that expert panel for macroeconomics and employment came out with suggestions to achieve $5 trillion economy target during an interaction with Prime Minister Narendra Modi. Improvement of governance in PSU banks, enhancing growth rate of exports & employment generation were some of the key areas identified.

On the global front, European markets were trading in red, as Germany's business sentiment weakened in June. The ifo business confidence index dropped to 97.4 in June from 97.9 in May. The score was forecast to fall to 97.5. The current conditions index came in at 100.8. May's initial reading was 100.6. Asian markets ended mixed, after Singapore's consumer price inflation accelerated unexpectedly in May on accommodation and private road transport costs. The consumer price index rose 0.9 percent year-on-year in May.

Back home, stocks related to the telecom industry ended lower, after total wireless subscribers (GSM, CDMA & LTE) increased slightly from 1,161.81 million at the end of March 2019 to 1,162.30 million at the end of April 19, thereby registering a monthly growth rate of 0.04%. Further, insurance stocks remained in focus, amid reports that the government is exploring various consolidation options including the merger of state-owned general insurance companies with New India Assurance with a view to create synergy and unlock value.

Finally, the BSE Sensex lost 71.53 points or 0.18% to 39,122.96, while the CNX Nifty was down by 24.45 points or 0.21% to 11,699.65.

The BSE Sensex touched a high and a low of 39,300.02 and 39,021.70, respectively and there were 16 stocks advancing against 15 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.32%, while Small cap index was down by 0.15%.

The top gaining sectoral indices on the BSE were Power up by 0.37%, Capital Goods up by 0.29%, FMCG up by 0.19%, Industrials up by 0.15% and Healthcare up by 0.06%, while Oil & Gas down by 1.59%, Metal down by 1.44%, Energy down by 1.23%, Realty down by 1.00% and Basic Materials down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.19%, Mahindra & Mahindra up by 1.31%, Tata Motors - DVR up by 1.30%, TCS up by 1.11% and SBI up by 1.09%. On the flip side, ONGC down by 3.48%, Tata Steel down by 2.33%, Vedanta down by 2.23%, Bajaj Auto down by 1.97% and Tech Mahindra down by 1.74% were the top losers.

Meanwhile, the Goods and Services Tax (GST) Council, which is headed by the Union Finance Minister Nirmala Sitharaman, has extended the tenure of the anti-profiteering authority by two years till November 2021 and allowed use of Aadhaar as proof for obtaining GST registration while referring tax cut on electric vehicles and their chargers to an officers' committee. It also approved imposing a penalty of up to 10 percent of the profiteered amount on entities for not passing on benefits of GST rate cuts to consumers, as against the current norm of levying a maximum fine of Rs 25,000.

In its 35th meeting, the Council also extended the date for the filing of annual returns under the GST regime for 2017-18 fiscal by two months till August 30, 2019. Also the date for barring non-filers of GST returns for two consecutive months from generating e-way bills for transporting goods has been extended by two months till August 21, 2019.

Further, the Council has given in-principle approval to launch of an electronic invoicing system on a pilot basis from January 1, 2020, made it mandatory for GST-registered multiplexes to issue e-tickets, and also decided to seek Attorney General opinion on the issue of GST rate on lotteries. According to the proposal, entities with a turnover of more than Rs 50 crore will be required to generate electronic invoices on a government portal for B2B sales.

The CNX Nifty traded in a range of 11,754.00 and 11,670.20. There were 22 stocks advancing against 27 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were UPL up by 5.38%, Yes Bank up by 1.64%, Mahindra & Mahindra up by 1.47%, TCS up by 1.21% and SBI up by 1.06%. On the flip side, JSW Steel down by 3.39%, Eicher Motors down by 3.27%, ONGC down by 3.01%, Tata Steel down by 2.36% and Bajaj-Auto down by 2.14% were the top losers.

European markets were trading in red; UK’s FTSE 100 fell 0.69 points or 0.01% to 7,406.81, France’s CAC decreased 10.42 points or 0.19% to 5,517.91 and Germany’s DAX was down 64.94 points or 0.53% to 12,274.98.

Asian markets ended mixed on Monday as investors watched for movement in the China-US trade dispute ahead of a meeting between Presidents Donald Trump and Xi Jinping planned for later this week in Osaka, Japan, at the G-20 summit. US President Donald Trump said, on June 23, he was not seeking war with Tehran and is prepared to seek a deal to bolster Iran's flagging economy in an apparent move to defuse tensions. But, US Secretary of State Mike Pompeo said ‘significant’ sanctions on Iran would be announced as early as Monday aimed at further choking off resources that Tehran uses to fund its activities in the region.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,008.15
6.17
0.21

Hang Seng

28,513.00
39.29
0.14

Jakarta Composite

6,288.46
-26.98
-0.43

KLSE Composite

1,676.13

-6.10

-0.36

Nikkei 225

21,285.99
27.35
0.13

Straits Times

3,311.53
-9.87
-0.30

KOSPI Composite

2,126.33
0.71
0.03

Taiwan Weighted

10,779.45
-24.32
-0.23
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