Markets hold momentum ahead of macro economic data

Key Indian benchmarks held their gaining momentum in late morning session, due to sustained buying by market participants ahead of key economic data — industrial production (IIP) for August and consumer inflation for September to be released later in the day. Traders took some encouragement with Finance Minister Arun Jaitley’s statement that an upward trajectory is being projected for growth from the current quarter and as far as growth figures are concerned in the next few years, it will keep on improving. Besides, traders remained optimistic on reports that the government’s revenue collection during April-September, the first half of fiscal year 2017-18 has shown a healthy growth. For the period, direct tax collections stood at Rs 3.86 lakh crore, registering a growth of 15.8 percent over the same period last year. On the sectoral front, some of banking shares were trading lower with International Monetary Fund’s (IMF) latest report which showed that Indian banking sector was vulnerable given that large segments have low profitability and have large problem loans.

On the global front, Asian markets were trading mostly in green, following the record closing highs overnight on Wall Street after the release of minutes of the US Federal Reserve's latest monetary policy meeting.  Back home, in scrip specific development, DIL touched the roof after the company received an approval to sign a Term Sheet to acquire 3,830,072 equity shares in its subsidiary, Fermenta Biotech (FBL), representing 21.05% of the issued and paid-up capital of FBL, from Evolvence India Life Sciences Fund LLC, a Private Equity Investor.

The BSE Sensex is currently trading at 31936.87, up by 102.88 points or 0.32% after trading in a range of 31813.67 and 31969.96. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.44%, while Small cap index was up by 0.71%.

The top gaining sectoral indices on the BSE were FMCG up by 1.21%, Metal up by 1.16%, Telecom up by 1.04%, Utilities up by 0.74% and Healthcare up by 0.70%, while Bankex down by 0.09% was the lone losing index on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.84%, Hindustan Unilever up by 1.79%, NTPC up by 1.49%, Reliance Industries up by 1.34% and Mahindra & Mahindra up by 1.31%. On the flip side, Bharti Airtel down by 1.40%, Tata Motors down by 0.78%, Coal India down by 0.78%, Asian Paints down by 0.75% and SBI down by 0.64% were the top losers.

Meanwhile, the government’s revenue collection during April-September, the first half of fiscal year 2017-18 has shown a healthy growth. For the period, direct tax collections, which comprise personal income and corporate tax, stood at Rs 3.86 lakh crore, registering a growth of 15.8 percent higher than the net collections for the corresponding period of last year, mainly on account of a healthy growth in advance tax mop-up. 

This is 39.4 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 FY18. In the April- September period last fiscal, 2016-17, the direct tax collection had grown around 9 percent to Rs 3.27 lakh crore. Till September 2017, advance tax collections have hit Rs 1.77 lakh crore, a growth rate of 11.5 percent.

In terms of gross revenue collections, personal income tax (PIT) collections (including Securities Transaction Tax) rose 30.1 percent, while growth under corporate income tax (CIT) was 8.1 percent over the corresponding period last fiscal. Refunds amounting to Rs 79,660 crore have been issued during April-September 2017. Before adjusting for refunds, the gross direct tax collection increased by 10.3 percent to Rs 4.66 lakh crore during April-September 2017.

The CNX Nifty is currently trading at 10023.40, up by 38.60 points or 0.39% after trading in a range of 9977.10 and 10032.05. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 5.18%, Hindalco up by 4.71%, Hindustan Unilever up by 1.93%, Aurobindo Pharma up by 1.90% and Sun Pharma up by 1.68%. On the flip side, Bharti Airtel down by 1.40%, Ultratech Cement down by 1.40%, SBI down by 0.87%, Tata Motors down by 0.85% and Asian Paints down by 0.80% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 11.35 points or 0.46% to 2,469.51, Jakarta Composite increased 31.53 points or 0.54% to 5,914.32, Taiwan Weighted increased 70.25 points or 0.66% to 10,711.44, Nikkei 225 increased 80.92 points or 0.39% to 20,962.19 and Hang Seng increased 115.83 points or 0.41% to 28,505.40.

On the flip side, Shanghai Composite decreased 9.45 points or 0.28% to 3,378.84 and FTSE Bursa Malaysia KLCI decreased 4.2 points or 0.24% to 1,753.01.