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Indian equity benchmarks moved between gains and losses on Tuesday before ending the day in red, on account of selling pressure in heavyweights like Tata Steel, Tech Mahindra, HCL Technologies and Reliance Industries. Domestic markets started trade in the green, as traders took some support with provisional data released by the government showed that India’s merchandise exports in October rose 42.33 per cent to $35.47 billion. The exports stood at $24.92 billion in October 2020 and $26.23 billion in October 2019. Some support also came with SBI Research’s report stating that the digitisation drive and pandemic-induced emergence of the gig economy have led to a faster formalisation of the economy, with the share of the informal sector shrinking to just 15-20 per cent in 2021 from 52.4 per cent in 2018. Adding to the optimism, Goods and Services Tax (GST) collection remained above Rs 1 lakh crore for the fourth month in a row at over Rs 1.30 lakh crore in October, indicating the impact of festive buying. This is the second highest collection of GST since its implementation on July 1, 2017.

However, markets lost momentum along the way and slipped into red in late afternoon session, as traders turned anxious with Centre for Monitoring of Indian Economy (CMIE) data showing that despite a 124 basis points month-on-month decline in urban joblessness rate, the country’s overall unemployment rate rose again in October, owing to a sudden 175 basis points rise in rural joblessness rate. Some concern also came amid reports that for the first time this fiscal, the weighted average cost of states' market borrowings crossed the 7 percentage mark at the auctions held on Monday with the average cut-off jumping by 12 bps to 7.02 per cent.

On the global front, Asian markets ended mostly lower on Tuesday as traders digested the latest coronavirus curbs in China and awaited key central bank decisions for clues on whether they could consider tightening monetary policy earlier than thought. The Fed's policy announcement is due on Wednesday and it is likely the U.S. central bank will announce tapering of its bond purchases. European markets were trading mostly in green despite Eurozone manufacturers reported a worsening of the supply chain in October. IHS Markit's final manufacturing Purchasing Managers' Index (PMI) dipped to an eight-month low of 58.3 in October from September's 58.6. That was shy of an initial 58.5 'flash' estimate.

Finally, the BSE Sensex fell 109.40 points or 0.18% to 60,029.06 and the CNX Nifty was down by 40.70 points or 0.23% to 17,888.95.          

The BSE Sensex touched high and low of 60,421.14 and 59,881.75, respectively and there were 14 stocks advancing against 16 stocks declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.55%, while Small cap index was up by 1.11%.

The top gaining sectoral indices on the BSE were Realty up by 3.33%, Consumer Durables up by 1.14%, Auto up by 0.96%, Consumer Discretionary up by 0.88%, Industrials up by 0.76%, while Metal down by 1.93%, Energy down by 1.20%, Basic Materials down by 1.13%, Oil & Gas down by 0.57%, Healthcare down by 0.34% were the losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.26%, Titan Company up by 1.95%, NTPC up by 1.75%, SBI up by 1.19% and Larsen & Toubro up by 1.18%. On the flip side, Tata Steel down by 3.74%, Tech Mahindra down by 2.12%, HCL Technologies down by 1.49%, Reliance Industries down by 1.44% and Indusind Bank down by 1.31% were the top losers.

Meanwhile, indicating the impact of festive buying, Goods and Services Tax (GST) collection remained above Rs 1 lakh crore for the fourth month in a row at over Rs 1.30 lakh crore in October. This is the second highest collection of GST since its implementation on July 1, 2017. The tax collections last month on goods sold and services rendered was 24 per cent higher than in October 2020.

The finance ministry said ‘The gross GST revenue collected in the month of October 2021 is Rs 1,30,127 crore of which CGST is Rs 23,861 crore, SGST is Rs 30,421 crore, IGST is Rs 67,361 crore (including Rs 32,998 crore collected on import of goods) and Cess is Rs 8,484 crore (including Rs 699 crore collected on import of goods)’.

CGST refers to Central Goods and Services Tax, SGST (State Goods and Service Tax) and IGST (Integrated Goods and Services Tax). It said this is very much in line with the trend in economic recovery, and added that ‘this is also evident from the trend in the e-way bills generated every month since the second wave’. It also said the revenues would have still been higher if the sales of cars and other products had not been affected on account of disruption in supply of semiconductors.

The CNX Nifty traded in a range of 18,012.25 and 17,847.60 and there were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 2.29%, NTPC up by 1.90%, Titan Company up by 1.86%, SBI up by 1.22% and Larsen & Toubro up by 1.21%. On the flip side, Tata Steel down by 3.44%, Grasim Industries down by 2.28%, JSW Steel down by 2.10%, Hindalco down by 1.93% and HCL Technologies down by 1.43% were the top losers.

European markets were trading mostly in green; France’s CAC increased 14.33 points or 0.21% to 6,907.62 and Germany’s DAX increased 63.20 points or 0.4% to 15,869.49, while UK’s FTSE 100 decreased 36.09 points or 0.5% to 7,252.53.

Asian markets ended mostly lower on Tuesday as investors awaited US Fed's policy announcement due on Wednesday that could reveal more about its plans to taper stimulus measures and hike interest rates. Japanese shares closed lower on profit taking after a strong rally following Japanese Prime Minister Fumio Kishida's election victory. Chinese shares declined sharply on growing concerns about the country's economic outlook after China-based property developer Yango Group offered to exchange some US dollar bonds for new notes personally guaranteed by its chairman to avoid defaulting on upcoming debt payments. However, Seoul shares gained after the government’s plan to seek inclusion into MSCI’s developed markets index.

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