Markets end flat amid consolidation ahead of GST Bill

Consumer-led stocks gained on expectations of the GST Bill and above normal monsoon forecast

Markets ended flat after gains in consumer-led stocks on expectations of the GST Bill and above normal monsoon forecast helped cap further downside.

The S&P BSE Sensex ended down 21 points at 27,982 and the Nifty50 ended down 14 points at 8,623. In the broader market, the BSE Midcap and Smallcap indices ended down 0.6%-0.8% each. Market breadth ended weak with 1764 losers and 980 gainers on the BSE.

"The market pared early gains as the global market weakened due to the slip in oil price and weak US economic data. The GST bill will be tabled tomorrow in the upper house and the market will continue to trade in a tight range till the verdict. We believe that market has been already rallying in expectation of passage of the GST. Since much of the benefits are in the long-term, the extent of the short-term rally will depend on the finalised tax rate, product exemption list and the time of implementation," said Vinod Nair, Head of Fundamental Research, Geojit BNP Paribas Financial Services.

On the macro-economic front, growth in the eight core sectors rose 5.2% in June, on the back of robust growth in coal and cement production. The index recovered from a five-month low in May, when it had grown 2.8%.

Meanwhile, the India Meteorological Department (IMD) on Monday retained its earlier forecast of ‘above normal’ rains during the four-month season of monsoon that started in June.

FMCG majors like ITC and HUL firmed up on renewed buying interest ahead of the GST Bill and  expectations that rural volume growth may pick up pace on the back of above normal monsoon forecast. ITC surged over 4% while HUL gained 0.5% contributing the most to the Sensex gains.

Most auto stocks ended higher after registering strong growth in domestic sales in July on improved consumer sentiment.

Shares of Maruti Suzuki India touched Rs 5,000 mark, a fresh record high on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), crossing the market capitalisation (m-cap) of Rs 150,000 crore on Tuesday. The stock ended nearly 3% higher. Hero MotoCorp gained over 1% while Bajaj Auto ended 0.3% higher.

L&T extended gains after the engineering major announced that its construction arm has bagged orders worth Rs 1,167 crore across business verticals.

Lupin ended over 1% lower after the Competition Commission of India (CCI) has imposed a total penalty of nearly Rs 73 crore on drug maker Lupin and two of its officials for unfair business practices, with regards to supply of medicines in the state of Karnataka.

Select financials such as ICICI Bank and HDFC were among the top losers along with auto major Tata Motors which ended over 2% lower on profit taking.

Sun Pharma came off its day's high to end with marginal losses.  The phara major today said it will launch the generic version of Glumetza, Metformin Hydrochloride tablets - a diabetes drug - soon in the US.

Among other shares, Delta Corp ended up 1.7% after the company reported a consolidated net profit at Rs 20 crore for the quarter ended June 30, 2016 (Q1FY17) as compared to a net loss of Rs 1 crore in the year ago quarter.

Indian Bank ended locked in 20% upper circuit after reporting 43% year on year (YoY) jump in net profit at Rs 307 crore for the quarter ended June 30, 2016 (Q1FY17). The public sector bank had registered a profit of Rs 215 crore in the year-ago quarter.

Advanced Enzyme Technologies rallied 17% after Reliance Mutual Fund bought shares of the firm through the open market on debut. The stock had zoomed 30% on its debut yesterday.