Update at 2.40 PM: The BSE Sensex was up 50 points at 30,906, hours before the last day of trading before the GST rollout comes to an end. Top gainers were ITC, Dr Reddy's Labs, Sun Pharma and TCS.
Update at 11.20 AM: The BSE Sensex had narrowed early morning losses and was trading 39 points lower at 30,818. Top gainers were Sun Pharma, ITC and Dr Reddy's Labs.
CDSL, which debuted on the National Stock Exchange today at 68 percent to the issue price of Rs 149, was trading at Rs 262 at around 11.25 am.
Original story:
Indian stock markets opened on a negative note on Friday, the last trading day before the goods and service tax (GST) is rolled out. Investors are apparently cautious of the implications, apart from booking profits. In another significant development, CDSL, whose initial public offering (IPO) was oversubscribed by 169 times, will be listed on stock exchanges today.
The BSE Sensex was down 170 points at 30,687 at around 9.30 am; stocks dragging the benchmark index included Larsen & Toubro, ICICI Bank and HDFC.
India will be switching over to "one nation one tax" from July 1 and the Central government will be holding a special Parliament session tonight to mark the historic occasion.
Central Depository Services (India) Limited, or CSDL, whose IPO closed on June 21, saw investors pouring in money in a big way, resulting in the Rs 524 crore public issue, creating a record for IPOs.
Also read: CDSL IPO oversubscribed 169 times, poised for spectacular listing
Automobile stocks are likely to be in focus in view of volume sales that will be declared tomorrow. Brokerages estimate sales to remain muted for June, notwithstanding companies luring prospective buyers with discount offers ahead of GST rollout.
"Automobile sales in June 2017 are expected to remain muted with most companies likely to post single-digit YoY growth or lower, or even a decline," Nirmal Bang Institutional Equities said in a note. The expectation of a fall in prices from July 1 has prompted many buyers to defer purchases.
Motilal Oswal Securities Limited (MOSL) had a similar view on June volume sales for automobile companies in view of the GST factor. "2W and PV wholesale volumes are expected to remain weak due to destocking at dealer level and postponement of purchases by customers due to GST-related uncertainty. On the CV front, pre-buying, coupled with continued shortage of BS-4 components, is likely to impact sales," it said in a note.
