Key indices hovered with small losses in mid-afternoon trade amid lackluster trading in European markets and weakness in Asian equities. At 14:15 IST, the barometer index, the S&P BSE Sensex, fell 39.12 points or 0.13% at 30,818.40. The Nifty 50 index declined 18.65 points or 0.2% at 9,485.45.
Meanwhile, investors were awaiting the nation-wide rollout of the much discussed indirect tax reform the Goods and Services Tax (GST) with effect from tomorrow, 1 July 2017.
Finance Minister Arun Jaitley held a meeting yesterday, 29 June 2017 with the representatives of trade and industry ahead of GST rollout. He asked the representatives of trade and industry to ensure that all benefits arising due to implementation of GST from 1 July 2017 are passed on to the consumers in a transparent manner.
Jaitley further said that now large number of traders has registered themselves and the GST Network and other official machinery is fully ready for smooth rollout of GST from 1 July 2017. He said that he is sure that GST will not have any inflationary impact.
Back to market, the S&P BSE Mid-Cap index fell 0.05%. The S&P BSE Small-Cap index lost 0.06%. The decline in both the indices was lower than the Sensex's decline in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,295 shares declined and 1,144 shares rose. A total of 177 shares were unchanged.
Auto stocks declined. Tata Motors (down 1.69%), Eicher Motors (down 1.29%), Ashok Leyland (down 1.23%), Bajaj Auto (down 1.1%), Hero MotoCorp (down 1.09%), Maruti Suzuki India (down 0.53%) and Mahindra & Mahindra (down 0.49%) edged lower. TVS Motor Company (up 0.26%) edged higher.
Metal and mining stocks also fell. Vedanta (down 1.08%), Hindalco Industries (down 0.99%), National Aluminium Company (down 0.54%), Hindustan Copper (down 0.47%), Jindal Steel & Power (down 0.45%), JSW Steel (down 0.32%) and Hindustan Zinc (down 0.19%) declined. Tata Steel (up 1.26%), NMDC (up 0.51%) and Steel Authority of India (up 0.26%) edged higher.
Bank of Baroda rose 2.89% at Rs 160 after a foreign brokerage reportedly upgraded the stock to buy from neutral with a target price of Rs 200. The outlook for its pre-provision operating profit (PPOP) is better than its rivals, due to expected improvements in its net interest margins, the brokerage said. PPOP is forecasted to grow at an average rate of roughly 13% between 2017 and 2019, it added.
Meanwhile, the India Meteorological Department (IMD) in its weekly weather report yesterday, 29 June 2017 said that during the week from 22nd June to 28th June 2017, the all India actual rainfall stood at 48.6 mm as against normal rainfall of 51.1 mm, with a departure of minus 5%.
The all India cumulative seasonal rainfall from 1st June to 28th June 2017 stood at 147.8 mm as against normal rainfall of 148 mm, with a departure of 0%.
On the macro front, the implementation of landmark tax reform GST will be closely watched. There will be a special function in the Central Hall of Parliament House tonight wherein a number of programs will be witness to the change in tax structure and implementation of GST across the country between the night of June 30 and July 1. The government expects GST to revolutionize India's taxing system and is being marketed as one nation one tax.
Overseas, European stocks witnessed a mixed trend. Asian stocks declined despite marginal improvement in China's manufacturing activity as select tech shares around the region sold off.
In economic news, China's manufacturing activity accelerated more than expected in June, suggesting the world's second-largest economy continued to confound expectations for a slowdown. The official manufacturing PMI rose to 51.7 in June, from 51.2 in May. Levels above 50 indicate expansion, while levels below signal contraction.
US equities fell yesterday, 29 June 2017 as technology stocks' latest drop washed out strong gains from the big banks.
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