Post Session: Quick Review

The local equity markets recouped from initial losses and managed to end the Monday’s trade in green. Most part of the day, markets traded near neutral lines with positive bias amid volatility. The said volatility was occurred ahead of monthly F&O expiry later in the week. Traders avoided to take long position amid risk-averse approach. Finally, Nifty and Sensex settled above the psychological 23500 and 77,300 levels, respectively.

Markets made negative start and remained lower following mixed cues from Wall Street on Friday as well as mostly negative cues from Asian markets in early trade. Foreign fund outflows also dented sentiments. On June 21, foreign institutional investors (FIIs) sold shares amounting to Rs 1,790.19 crore. However, indices managed to wipe out losses to trade in green, as investors took some support after GST Council at its 53rd meeting introduced sweeping reforms with an aim to simplify tax compliance and ease the burden on taxpayers. Key among these is the introduction of biometric-based Aadhaar authentication for registration applicants nationwide. This is intended to curb fraudulent registrations and tax evasion. Markets remained in positive territory in afternoon session. Traders took a note of report that in its economic outlook for Asia Pacific, S&P Global Ratings said India's economic growth continues to surprise on the upside with the economy growing 8.2 per cent in fiscal year 2023-24. It retained India's GDP growth forecast for the current financial year at 6.8 per cent and said high interest rates and lower fiscal spur would temper demand. In late afternoon session, markets once again hit red territory but able to recover. 

On the global front, European markets were trading higher as Beijing and Brussels took the 'first step' towards resolving a months-long trade dispute over Chinese electric cars with new talks. Investors shrugged off survey results from the ifo Institute showing that Germany's business sentiment softened in June. Asian markets ended mixed as investors awaited U.S. inflation data and comments from Fed officials for additional clues on the outlook for interest rates. Back home, Ministry of Coal has launched the 10th tranche of commercial coal mine auctions and a total of 67 coal mines are offered. The Ministry of Coal has taken a series of reforms to ensure that the coal sector grows at a rapid pace and is able to meet the country’s energy needs.

The BSE Sensex ended at 77,341.08, up by 131.18 points or 0.17% after trading in a range of 76,745.94 and 77,423.02. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index gained 0.37%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were Auto up by 1.33%, Power up by 1.28%, Industrials up by 1.00%, Capital Goods up by 0.99% and Utilities was up by 0.88%, while Metal down by 0.91%, Energy down by 0.55%, Oil & Gas down by 0.46%, Basic Materials down by 0.19% and Healthcare was down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.69%, Power Grid up by 2.23%, Sun Pharma up by 1.93%, Nestle up by 1.35% and Ultratech Cement up by 1.14%. On the flip side, Indusind Bank down by 2.37%, Adani Ports down by 1.72%, Tata Steel down by 1.08%, Reliance Industries down by 0.82% and Axis Bank down by 0.64% were the top losers.

Meanwhile, with an aim to simplify tax compliance and ease the burden on taxpayers, the GST Council at its 53rd meeting has introduced sweeping reforms. Finance Minister Nirmala Sitharaman highlighted the introduction of biometric-based Aadhaar authentication for registration applicants nationwide. This is intended to curb fraudulent registrations and tax evasion. The Council also set monetary limits for appeals, reducing the financial strain on taxpayers.

In a move to foster a more taxpayer-friendly environment, the Council waived interest and penalties for initial demand notices, provided the full tax amount is cleared by March 31, 2025. These measures, alongside anticipated discussions on rate rationalization, underscore the Council's commitment to making tax compliance less cumbersome.

Furthermore, steps were taken to reduce litigation through structured initiatives. Notably, the GST Appellate Tribunals (GSTAT) will now handle cases involving amounts up to Rs 20 lakh, while matters for High Courts and the Supreme Court will have higher thresholds of Rs 1 crore and Rs 2 crore, respectively. These measures are anticipated to expedite judicial processes and provide relief to smaller taxpayers.

In a bid to facilitate easier tax compliance for smaller entities, the GST return filing deadline for GSTR-4 has been extended to June 30. Additionally, modifications have been introduced in GSTR-1, with the introduction of a new form named GSTR-1A, aimed at simplifying the reporting process.

The CNX Nifty ended at 23,537.85, up by 36.75 points or 0.16% after trading in a range of 23,350.00 and 23,558.10. There were 27 stocks advancing against 22 stocks declining on the index, while 1 stock remained unchanged.  

The top gainers on Nifty were Mahindra & Mahindra up by 2.67%, Shriram Finance up by 2.15%, Power Grid up by 2.15%, Grasim Industries up by 1.98% and Sun Pharma up by 1.86%. On the flip side, Cipla down by 2.41%, Indusind Bank down by 2.41%, Adani Ports down by 1.70%, Coal India down by 1.35% and Tata Steel down by 1.10% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 33.05 points or 0.4% to 8,270.77, France’s CAC rose 39.36 points or 0.51% to 7,667.93 and Germany’s DAX was up by 71.8 points or 0.39% to 18,235.32. 

Asian markets settled mixed on Monday ahead of key US inflation data and comments from Fed officials for additional clues on the outlook for interest rates. Moreover, clash between US Democratic President Joe Biden and Republican former President Donald Trump also weighed on market sentiments. Chinese shares declined after the yuan hit a seven-month low after data showed China's fiscal revenue fell 2.8% in the first five months of 2024 from a year earlier, accelerating from a 2.7% decline in the January-April period. Meanwhile, China and the European Union agreed to start talks on the planned imposition of tariffs on Chinese-made electric vehicles (EVs) being imported into the European market. However, Japanese shares gained as the Bank of Japan's summary of opinions from its June 13-14 policy meeting showed board members debated the need for timely rate hike, while a weaker yen bolstered exporter shares.