Post Session: Quick Review

Indian equity markets extended their northward journey on Tuesday with Nifty and Sensex settling above the psychological 25,000 and 81,900 levels respectively. Nifty came back above 25000 mark on Tuesday. Investors braced for India’s Consumer Price Index (CPI) and India Industrial Production data to be out later in the week. As for broader indices, the BSE Mid cap index ended above half a percent, while Small cap index concluded with gains of above one and half a percent.

Markets made optimistic start tracking strengthening sentiment in global markets that were focused on the upcoming Federal Reserve policy rate meeting scheduled for next week. But, soon indices trimmed their gains to trade near neutral lines. Traders took note of Union Minister of State for Ministry of Commerce and Industry Jitin Prasada’s statement that India is revising FTAs with South Korea, Malaysia and various other ASEAN countries to benefit the domestic industries. He also emphasised the importance of boosting exports, reducing import dependence and ensuring growth. However, markets gained traction to trade higher in late morning session as the Goods and Services Tax (GST) Council in its 54th meeting has made various recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST. The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab is reduced from 12% to 5%. Indices added more points in afternoon session, as investors continued to hunt for fundamentally strong stocks. In late afternoon session, markets came off from day’s high levels.

On the global front, European markets were trading mostly in red as investors await key German and U.S. inflation readings this week for more cues on interest rate cuts. Asian markets settled mostly higher after the U.S. government proposed new sanctions on Chinese biotech firms. Investors digested Chinese trade data and looked ahead to the release of key U.S. consumer and producer inflation readings this week for additional clues on the size of potential rate cuts by the Federal Reserve at its meeting next week. Back home, Credit rating agency ICRA in its latest report has said that the Indian IT services industry is likely to see a second consecutive year of mild revenue growth of 4-6% in FY2025.

The BSE Sensex ended at 81,921.29, up by 361.75 points or 0.44% after trading in a range of 81,445.30 and 82,196.55. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.53%, while Small cap index was up by 1.53%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.00%, Utilities up by 1.76%, Power up by 1.74%, TECK up by 1.62% and IT was up by 1.52%, while Oil & Gas down by 0.42% and Energy was down by 0.03% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech up by 2.15%, Bharti Airtel up by 2.10%, Tech Mahindra up by 1.92%, NTPC up by 1.73% and Power Grid Corp up by 1.70%. On the flip side, Bajaj Finserv down by 1.77%, Bajaj Finance down by 1.45%, Hindustan Unilever down by 0.81%, Mahindra & Mahindra down by 0.68% and Tata Motors down by 0.30% were the top losers. (Provisional)

Meanwhile, in a relief to individuals, the Goods and Services Tax (GST) Council in its 54th meeting has made various recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.

The GST rate of extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 to be reduced from 18% to 12% at par with namkeens, bhujia, mixture, chabena (pre-packaged and labelled) and similar edible preparations in ready for consumption form which are classifiable under HS 2106 90. The GST rate of 5% will continue on un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion.

Besides, the GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab is reduced from 12% to 5%. Further, Reverse Charge Mechanism (RCM) will be introduced on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold. A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply.

GST rate on car seats classifiable under 9401 is increased from 18% to 28%. This uniform rate of 28% will be applicable prospectively for car seats of motor cars in order to bring parity with seats of motorcycles which already attract a GST rate of 28%.

The CNX Nifty ended at 25,041.10, up by 104.70 points or 0.42% after trading in a range of 24,896.80 and 25,130.50. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Divi's Lab up by 4.89%, LTIMindtree up by 3.20%, Bharti Airtel up by 2.28%, Wipro up by 2.12% and HCL Tech up by 1.85%. On the flip side, HDFC Life Insurance down by 4.47%, SBI Life down by 2.54%, Bajaj Finserv down by 1.93%, Shriram Finance down by 1.68% and Bajaj Finance down by 1.44% were the top losers. (Provisional)

European markets were trading mostly in red; UK’s FTSE 100 decreased 39.47 points or 0.48% to 8,231.37 and Germany’s DAX was down by 5.22 points or 0.03% to 18,438.34. On the flip side, France’s CAC was up by 27.66 points or 0.37% to 7,452.92.

Asian markets settled mostly higher on Tuesday tracking Wall Street gains overnight ahead of key US inflation data due this week for additional cues on the size of potential rate cuts by the Federal Reserve at its meeting next week. Investor were also focusing on the first US Presidential debate between Kamala Harris and Donald Trump later today. Hong Kong and Chinese shares gained after the latest customs data showed China’s exports unexpectedly accelerated in August. Although, the US House of Representatives passed legislation to cut off US government funding for Chinese biotech firms deemed national security risks. Japanese shares extended losses ahead to upcoming BoJ policy meetings later this month.