Benchmarks trade in fine fettle on sanguine global cues

Indian equity benchmarks have made a firm start and are trading in fine fettle in early deals on Tuesday, tailing the strong global cues. Traders also took some encouragement with report that direct tax collections in the first five months of the current fiscal grew 17.5% to Rs 2.24 lakh crore, mainly on account of income tax mop-up from individuals. This is 22.9% of the total budget estimates of direct taxes, which comprise personal income and corporate tax, for the current financial year. Moreover, traders eyeing the macro data of industrial production for July scheduled to be announced post market hours.

Global cues remained strong with most of the Asian counters trading in green at this point of time, with less damage than originally feared from Hurricane Irma supporting the case for a gradually improving U.S. economy. The US markets rallied in last session as Hurricane Irma hit Florida with less force than expected and North Korea failed to conduct another nuclear missile test over the weekend.

Back home, a RBI paper has said that farm loan waiver amounting to Rs 88,000 crore likely to be released in 2017-18 by seven states, including Uttar Pradesh and Maharashtra, may push inflation on permanent basis by 0.2 per cent. The market breadth indicating the overall health of the market was strong, with 1,164 shares gaining and 758 shares declining, while a total of 75 shares were unchanged.

The BSE Sensex is currently trading at 31962.56, up by 80.40 points or 0.25% after trading in a range of 31950.24 and 32037.94. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.46%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Realty up by 1.74%, Metal up by 1.07%, Basic Materials up by 0.93%, Oil & Gas up by 0.85% and FMCG was up by 0.76%, while Telecom was down by 0.52% was the lone losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 3.37%, ITC up by 1.15%, Hindustan Unilever up by 1.06%, Tata Motors - DVR up by 0.95% and Asian Paints up by 0.93%. On the flip side, Cipla down by 1.15%, Coal India down by 1.05%, Dr. Reddy’s Lab down by 0.89%, ONGC down by 0.89% and Bharti Airtel down by 0.78% were the top losers.

Meanwhile, continuing its trend, the government’s revenue collection during April-August period of fiscal year 2017-18 has shown a steady growth. Direct Tax collections, which comprise personal income and corporate tax, jumped 17.5 percent to Rs 2.24 lakh crore in the first five months ending August 2017, mainly on account of income tax mop-up from individuals.

This is 22.9 percent of the total budget estimates of direct taxes for the current financial year. The government estimates to collect Rs 9.80 lakh crore from direct taxes in the current fiscal. In the April-August period last fiscal, 2016-17, the direct tax collection had grown 15.03 percent to Rs 1.89 lakh crore.

In terms of gross revenue collections, personal income tax (PIT) collections (including Securities Transaction Tax) rose 16 percent, while corporate income tax (CIT) mop-up grew 5 percent. Refunds amounting to Rs 74,089 crore have been issued during April-August 2017 which is 7.2 percent lower than the refunds issued during the corresponding period last fiscal. After adjusting for refunds, the net growth in corporate tax collections was 18.1 percent, while that in income tax collections was 16.5 percent.

The CNX Nifty is currently trading at 10030.50, up by 24.45 points or 0.24% after trading in a range of 10028.10 and 10056.85. There were 34 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 3.34%, Zee Entertainment up by 2.34%, ACC up by 2.08%, BPCL up by 1.88% and Indian Oil Corporation up by 1.36%. On the flip side, Indusind Bank down by 1.77%, Cipla down by 1.46%, Coal India down by 1.05%, Tech Mahindra down by 1.04% and Bharti Airtel down by 1.03% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI rose 1.44 points or 0.08% to 1,784.18, Shanghai Composite gained 2.37 points or 0.07% to 3,378.79, KOSPI Index jumped 5.19 points or 0.22% to 2,364.27, Jakarta Composite added 6.69 points or 0.11% to 5,878.57, Taiwan Weighted increased 24.68 points or 0.23% to 10,596.84 and Nikkei 225 was up by 204.02 points or 1.04% to 19,749.79.

On the flip side, Hang Seng was down by 2.14 points or 0.01% to 27,952.99.