Sensex, Nifty open in red ahead of GST launch

Finance Minister Arun Jaitley has especially requested that manufacturers extend the revenues gained via lower tax rates to the end consumers.

Mumbai, June 30: Benchmark indices opened on a weak note early on Friday. The 30-scrip Sensex lost 138.94 points or 0.45 per cent to open at 30,718.58. Similarly, National Stock Exchange’s Nifty lost 45.80 points or -0.48 per cent to open at  9,458.30.

The caution in market sentiments comes ahead of the much-awaited launch of the Goods and Services Tax in the country. The GST is all set to be launched in a midnight session of the Parliament. While a few political parties have decided to boycott the session, it is thought to bring about a landmark reform in India’s taxation system.

Slamming the opposition parties for not being a part of the event, Jaitley had briefed the media and said, “Those who have party to this consultation and decision making process must also accept this is not a decision of the Central government. It is equally a decision which 31 state governments and union territories have been a party to and these are representing various political complexions,” Jaitley said while addressing a press conference. They must display broad shoulder and own up this decision. Symbolic boycotts aren’t evidence of any kind of disassociation from these decisions.”

However, fears remain high among consumers, backed by uncertainty. Finance Minister Arun Jaitley has especially requested that manufacturers extend the revenues gained via lower tax rates to the end consumers. meanwhile, some fear that the necessary infrastructure required for such a nationwide change is not in place.

Meanwhile, global cues have also remained weak. US stocks saw a sharp downfall after its technology sector saw a fall. This could not be offset by its banking sector. Meanwhile, European markets managed to touch a nine-month low. Following the trend, Asian markets also remained subdued despite positive data from Chinese manufacturing.

The top gainers in the 30-scrip BSE included Sun Pharma, TCS, Cipla and Dr Reddy; that gained by 1.26, 0.96, 0.96 and 0.82 per cents. The entities that lost the most according to the Bombay Stock Exchange’s benchmark index were LT, ICIC Bank, Kotak Bank and HDFC that lost by 1.86, 1.40, 1.09, 1.08 percentage points each. Similar trends were also recorded by the Nifty.