Indian Indices Continue Downtrend; Capital Goods And Banking Stocks Witness Selling

Indian share markets are presently trading on a negative note. Sectoral indices are trading on a mixed note with stocks from the capital goods sector and the banking sector witnessing maximum selling pressure. Realty stocks are trading in the green.

The BSE Sensex is trading down 125 points (down 0.4%) and the NSE Nifty is trading down 38 points (down 0.4%). Meanwhile, the BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading flat. The rupee is trading at 64.33 to the US$.

With two weeks to go for the goods and services tax (GST) roll-out, the GST Council has reduced the rates for 66 items and expanded the scope of the composition scheme for the benefit of small traders, manufacturers, and restaurateurs.

The composition scheme is a presumptive taxation scheme allowing small traders, manufacturers and restaurants to pay a 1-5% GST rate on sales without tax credits.

In our view, GST promises to transform India into a single common market and many sectors are subject to benefit immensely from the transition.

In other news, the Maharashtra government has announced a loan waiver for farmers. The state government has decided to form a committee to decide the criteria of debt relief.

Soon after the announcement, the farmer groups called off their protests which they have been agitating for the past ten days. The key demands made by agitating cultivators in Maharashtra included a minimum support price for all farm produce, 100% subsidy on drip irrigation equipment, better facilities for storage and transport of crops, etc. However, the key demand made by them was the loan waiver.

The above development is followed by Uttar Pradesh government’s recent farm loan waiver of Rs 307 billion.

One shall note that the Uttar Pradesh government’s farm loan waiver has also set a precedent of sorts with farmers from Tamil Nadu, Karnataka, Madhya Pradesh, and Rajasthan protesting for farm loan waivers from the government.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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