Domestic indices trade deeply in red; Nifty slips below 16,700 mark

Indian equity benchmarks extended their previous session’s losses with gap-down opening on Monday, as global sentiment remained cautious amid rising Omircon coronavirus cases worldwide. India's Omicron COVID count rose to 151 on Sunday after Maharashtra reported six more cases. Now, markets are trading deeply in red with cut of around 2% each in early deals due to selling in all the sector indices led by Metal, Realty and Industrials. Sensex and Nifty slipped below their crucial 56,000 and 16,700 levels, respectively. Traders were concerned with continues foreign fun outflow. Foreign portfolio investors (FPIs) have pulled out Rs 17,696 crore from the Indian markets in December so far amid uncertainty due to a new coronavirus strain, Omicron, and expectations of faster tapering by the US Federal Reserve. Also, RBI data showed declining for the third consecutive week, India’s forex reserves dipped by $77 million to reach $635.828 billion for the week ended December 10. Traders largely overlooked report that aided by revival of economic activities and better compliance, the Union government’s advance direct tax collections from companies, LLPs and individuals rose 50% on year to about Rs 2.1 lakh crore in Q3FY22, even as a favouarble base effect waned.

Global cues remained subdued with all the Asian markets trading lower following the broadly negative cues from Wall Street on Friday, on sinking oil prices and lingering concerns about the Omicron variant of the coronavirus, which seems to be spreading faster than other strains now in 89 countries. The resultant imposition of strict restrictions to curb the spread of the infection might slow down the pace of global economic recovery. Back home, sugar stocks were in focus as Food Secretary Sudhanshu Pandey ruled out hike in the minimum selling price of sugar from current Rs 31 per kg as domestic rates are higher and expressed confidence that exports will touch 50-60 lakh tonnes in the current marketing year starting October. In scrip specific development, Cipla rose as it received the U.S. FDA nod to market Lanreotide injection in American market.

The BSE Sensex is currently trading at 55,973.51, down by 1038.23 points or 1.82% after trading in a range of 55840.14 and 56538.15. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 2.71%, while Small cap index was down by 2.99%.

The top losing sectoral indices on the BSE were Metal down by 3.30%, Realty down by 3.10%, Industrials down by 2.93%, Auto down by 2.85%, Oil & Gas down by 2.84%, while there was no gainer.

The few gainers on the Sensex were Dr. Reddy up by 0.57%, Sun Pharma up by 0.35%, Wipro up by 0.26% and Power Grid up by 0.07%. On the flip side, Tata Steel down by 3.76%, Bajaj Finance down by 3.50%, SBI down by 3.37%, Kotak Mahindra Bank down by 2.84% and HDFC Bank down by 2.80% were the top losers.

Meanwhile, indicating recovery in the economy, the Finance Ministry has said advance tax collection increased by 53.50 per cent to Rs 4,59,917.1 crore as on December 16, 2021 for the first, second and third quarter of 2021-22, against advance tax collections of Rs 2,99,620.5 crore for the corresponding period of 2020-21. Direct tax collections for 2021-22, as on December 16, show that net collections are at Rs 9.45 lakh crore compared to Rs 5.88 lakh crore over the year-ago period, representing an increase of 60.8 per cent. It said ‘The net collection (as on December 16) in FY22 has registered a growth of 40 per cent over the corresponding period of previous year when the net collection was Rs 6,75,409.5 crore, and a growth of 40.93 per cent over the corresponding period of 2018-19 when the net collection was Rs 6,70,739.1 crore’.

Further, it shows a growth of 44.21 per cent over the corresponding period in 2019-20 when the advance tax collection (cumulative) was Rs 3.19 lakh crore and a growth of 49.76 per cent over the same period in 2018-19. The advance tax figure as on December 16, 2021 comprises Corporation Tax (CIT) of Rs 3,49,045.4 crore and Personal Income Tax (PIT) of Rs 1,10,871.7 crore. This amount is expected to increase as further information is awaited from banks. The last date for payment of third installment of advance tax is December 15 every year. The Net Direct Tax collection was Rs 9,45,276.6 crore, including CIT at Rs 5,15,870.5 crore (net of refund) and PIT including Security Transaction Tax (STT) at Rs 4,29,406.1 crore (net of refund). The gross collection of Direct Taxes (before adjusting for refunds) for 2021-22 (as on 16.12.2021) stood at Rs 10,80,370.2 crore compared to Rs 7,33,715.2 crore in the corresponding period of the preceding financial year.

The gross collection for 2019-20 was Rs 8,34,398 crore and that for 2018-19 was Rs 7,96,342 crore in the corresponding period. The gross collection of Rs 10,80,370.2 crore includes CIT at Rs 6,05,652.6 crore and PIT including Security Transaction Tax(STT) at Rs 4,74,717.6 crore. Minor head wise collection comprises advance tax of Rs 4,59,917.1 crore, Tax Deducted at Source of Rs 4,93,171.7 crore, Self-Assessment Tax of Rs 74,336.2 crore; Regular Assessment Tax of Rs 44,028.7 crore; Dividend Distribution Tax of Rs 6,525.9 crore and tax under other minor heads of Rs 2390.6 crore. Refunds amounting to Rs 1,35,093.6 crore have also been issued in 2021-22 so far.

The CNX Nifty is currently trading at 16655.80, down by 329.40 points or 1.94% after trading in a range of 16635.90 and 16840.10. There were 2 stocks advancing against 48 stocks declining on the index.

The only gainers on Nifty were Cipla up by 2.69% and Sun Pharma up by 0.14%. On the flip side, Bajaj Finance down by 4.06%, BPCL down by 3.50%, Tata Steel down by 3.45%, JSW Steel down by 3.42% and Tata Motors down by 3.22% were the top losers.

All the Asian markets are trading in red; Nikkei 225 slipped 619.66 points or 2.17% to 27,926.02, Straits Times declined 34.21 points or 1.10% to 3,077.42, Hang Seng lost 291.28 points or 1.26% to 22,901.35, Taiwan Weighted fell 149.02 points or 0.84% to 17,663.57, KOSPI plunged 52.65 points or 1.74% to 2,965.08, Jakarta Composite dropped 39.83 points or 0.60% to 6,562.10 and Shanghai Composite was down by 27.15 points or 0.75% to 3,605.21.