Key benchmarks continue to trade in negative territory

Mirroring weak global cues, the Indian equity benchmarks continued their trade in negative territory in late morning session, with global selloff as an escalating trade spat between the US and China sapped investors’ confidence. Traders took note of private report that, the old macro enemies are making a comeback in India, such as higher oil prices, fiscal slippages, and if interest rates and inflation goes up it will weigh on macros. Meanwhile, on a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 689.75 crore, while domestic institutional investors (DIIs) bought shares worth Rs 413.16 crore on April 2. Investors failed to draw any sense of relief from the report that Direct tax collections in 2017-18 at Rs 9.95 lakh crore, exceeded the revised budgetary target of Rs 9.8 lakh crore for FY18. Also, 6.84 crore income tax returns filed in the year against 5.43 crore in the previous year.

On the global front, Asian markets were trading in red, as investors remained on the back foot as China imposed extra tariffs on 128 US products, deepening a dispute between the world's two biggest economies and stoking concerns about the impact on global growth. Back on domestic turf, the India’s core sector output expanded at a faster pace of 5.3% in February 2018, against the 0.6% growth recorded in February 2017. The core sectors expanded by 6.1 per cent in January.  In scrip specific development, Yash Papers shines on recording highest ever monthly export of paper at 1102 MT in March. Besides, Sat Industries gains on getting nod to pursue new line of business related to Stainless Steel hoses and fittings, through conversion of its 0.01% compulsorily.

The BSE Sensex is currently trading at 33178.82, down by 76.54 points or 0.23% after trading in a range of 33153.83 and 33318.34. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.22%, while Small cap index was up by 0.24%.

The top gaining sectoral indices on the BSE were PSU up by 0.58%, Healthcare up by 0.36%, Bankex up by 0.35%, Auto up by 0.35% and Oil & Gas was up by 0.15%, while Consumer Durables down by 0.67%, Capital Goods down by 0.59%, TECK down by 0.53%, IT down by 0.49% and FMCG was down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 1.98%, Tata Motors - DVR up by 1.48%, SBI up by 1.44%, Indusind Bank up by 1.42% and Mahindra & Mahindra was up by 1.23%. On the flip side, Wipro down by 2.17%, Adani Ports down by 1.46%, ONGC down by 1.25%, Larsen & Toubro down by 1.18% and HDFC was down by 0.96% were the top losers.

Meanwhile, the government’s revenue collection during fiscal year 2017-18 has gone up by 17.1 percent at Rs 9.95 lakh crore, supported by the addition of one crore new assessees who have started filing income tax returns. According to the Ministry of Finance, the net Direct Tax collections represent 101.5% of the Budget Estimates (Rs 9.8 lakh crore) and 99% of the Revised Estimates (Rs 10.05 lakh crore) of Direct Taxes for FY 2017-18.

The Ministry also indicated that nearly 6.84 crore income tax returns (ITRs) were filed in FY18 against 5.43 crore in FY17, registering a growth of 26 percent. It noted that before adjusting for refunds, gross collections have increased by 13 percent to Rs 11.44 lakh crore in FY 2017-18. Further, the data showed that refunds amounting to Rs 1.49 lakh crore have been issued during 2017-18. It added that net corporate tax recorded a growth of 17.1% while net personal income tax (including STT) recorded a growth of 18.9%.

The data highlighted that during FY18, the number of new ITR filers has also increased to 99.49 lakh as compared to 85.51 lakh new ITR filers added during FY17, which translates into a growth of 16.3 percent. It pointed out that the increase in total returns filed and new returns filed during FY18 is a result of sustained efforts made by the Income Tax Department in following up with potential non-filers through email, SMS, statutory notices, outreach programmes, etc. as well as through structural changes made in law and the Government’s emphasis on widening of tax net. 

The CNX Nifty is currently trading at 10182.00, down by 29.80 points or 0.29% after trading in a range of 10171.05 and 10229.45. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were HPCL up by 2.64%, Indiabulls Housing up by 2.17%, Yes Bank up by 1.98%, Indian Oil Corporation up by 1.53% and SBI up by 1.48%. On the flip side, Tech Mahindra down by 3.20%, Wipro down by 2.14%, Grasim Industries down by 1.70%, Zee Entertainment down by 1.55% and Eicher Motors was down by 1.44% were the top losers.

All the Asian markets were trading in red; Nikkei 225 declined 176.51 points or 0.83% to 21,212.07, Hang Seng slipped 167.87 points or 0.56% to 29,925.51, Taiwan Weighted dropped 66.74 points or 0.61% to 10,821.53, Shanghai Composite decreased by 33.82 points or 1.07% to 3,129.36, Jakarta Composite fell 30.51 points or 0.49% to 6,210.06, KOSPI Index weakened 6.4 points or 0.26% to 2,437.76 and FTSE Bursa Malaysia KLCI was down by 3.53 points or 0.19% to 1,854.82.