The benchmark indices on Thursday continued to trade lower after Asian markets suffered modest losses taking cues from a lackluster day on Wall Street as investors locked in gains in thin trade ahead of the upcoming holidays.
At 09:56 am, the S&P BSE Sensex was trading at 26,104, down 138 points, while the broader Nifty50 was ruling at 8,014, down 47 points.
S&P BSE Auto and Bankex indices were the top sectoral losers and lost 0.5% each. Among individual stocks, Adani Ports, Maruti Suzuki and Axis Bank declined the most on Sensex. Among gainers, Sun Pharma, TCS and ITC surged up to 1%.
“If the Nifty index manages to stay below 8,056 for first half an hour, we would expect some weakness towards the 8,000 mark. In the other scenario, if the Nifty manages to stay above 8,085, we would continue with our recent optimistic stance on the market. For the coming session, resistance levels are seen at 8,112-8,133,” said Angel Broking in a technical report.
On Wednesday, the foreign portfolio investors (FPIs) sold shares worth a net Rs 1178.08 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 1057.96 crore, provisional data available with the stock exchanges suggested.
GST Council meet begins today
Back home, investors will keep an eye on the two-day Goods & Services Tax (GST) Council meet which begins later in the day. The GST Council will discuss drafts of the model GST, integrated GST and states’ compensation Bills.
The prime minister Narendra Modi’s push to demonetisation has derailed the timely implementation of the GST with Finance Minister Arun Jaitley extending the deadline beyond April 2017. It may not be easy to reach consensus in the GST Council meeting as states won’t risk another setback by rushing the sales tax into force.
A slump in business activity stemming from the cash crunch has already caused the revenue of state governments to slump by 25-40%.
Asian shares struggled on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan was slightly higher in early trade, while Japan’s Nikkei stock index slumped 0.6%. China’s Shanghai Composite was down 0.2%, while Hong Kong’s Hang Seng index shed 1%.
US stocks, which have been on a tear since the November 8 election on bets that the incoming Trump Administration will embark on growth-stimulating, inflation-stoking policies, pulled back from the record highs logged in the previous session.
The Dow Jones Industrial Average dipped 0.16% to end at 19,941.96 points and the S&P 500 lost 0.25% to 2,265.18. The Nasdaq Composite dropped 0.23% to 5,471.43.
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