Benchmarks give up opening gains; trade lower in early deals

Indian equity benchmarks made positive start on Monday but soon lost momentum and slipped into red terrain amid mixed Asian cues. Markets are trading in red with marginal cut in early deals amid worries about continued fighting in Ukraine and climbing oil prices. Initially, some support came in as India's collection from tax on personal and corporate income jumped over 48 per cent in the current fiscal after a 41 per cent surge in advance tax payments, mirroring sustained economic recovery in a year that witnessed two waves of coronavirus infections. Though, traders turned cautious as according to the latest data from the RBI, the country’s foreign exchange reserves declined $9.646 billion to $622.275 billion in the week ended March 11. Adding pessimism, retail inflation for farm workers and rural labourers rose to 5.59 per cent and 5.94 per cent respectively in February, mainly due to higher prices of certain food items. Meanwhile, the government is working on classification of cryptocurrency as goods or services under the GST law, so that tax can be levied on the entire value of transactions.

On the global front, Asian markets are trading mixed as investors wait on further details of possible stimulus amid mounting external risks to an already slowing economy. Markets in Japan remain closed for a holiday. Earlier today, the People's Bank of China kept its benchmark interest rate for corporate and household lending unchanged. Back home, sugar industry stocks were in focus as industry body ISMA said sugar exports have jumped over 2.5 fold between October 2021 and February this year to 47 lakh tonnes on higher production and better demand of the Indian sweetener in the global market. In scrip specific development, Glenmark Pharmaceuticals jumped after receiving the USFDA approval for its Lacosamide Tablets.

The BSE Sensex is currently trading at 57709.57, down by 154.36 points or 0.27% after trading in a range of 57690.72 and 58127.95. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.15%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Metal up by 1.63%, Healthcare up by 1.16%, Telecom up by 0.88%, IT up by 0.78%, Basic Materials up by 0.75%, while Utilities down by 1.33%, Power down by 1.19%, Bankex down by 0.91%, FMCG down by 0.57%, PSU down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.64%, Sun Pharma up by 2.10%, Wipro up by 1.49%, Tata Steel up by 1.29% and Tech Mahindra up by 1.26%. On the flip side, Kotak Mahindra Bank down by 1.70%, Hindustan Unilever down by 1.69%, Asian Paints down by 1.52%, SBI down by 1.24% and Indusind Bank down by 1.18% were the top losers.

Meanwhile, expressing optimism over tax collection, CBDT Chairman J B Mohaptra has stated the Income Tax (I-T) department has made the ‘highest’ collection in its history, when the direct tax mop up jumped over 48 per cent in the current fiscal backed by a 41 per cent surge in advance tax payments. He said the net collection numbers as on until March 16, 2022 is Rs 13.63 lakh crore against Rs 11.18 lakh crore of 2018-19, Rs 10.28 lakh crore of 2019-20 and Rs 9.24 lakh crore of 2020-21.

Mohaptra said ‘the year-on-year net collections is more by 48.4 per cent over 2020-21, over 42.5 per cent of 2019-20 and 35 per cent over 2018-19. In the block of last four years, the net collection numbers are the highest’. He added ‘It beats the previous high by as much as Rs 2.5 lakh crore. This is the highest number of income tax collections thus far in the history of the department’. He noted that ‘If you look at the gross numbers, it is today Rs 15.50 lakh crore which is more by 38.3 per cent of 2020-21, more by 36.6 per cent of 2019-20, more by 32.7 per cent of 2108-19. We have never entered gross collection wise beyond Rs 12.79 lakh crore. This year, we have entered into Rs 15 lakh gross numbers which also is a historic high for the department’.

On all counts, he said the tax collection numbers are the highest thus far in the history of the department. The net collections in direct taxes, which is made up of income tax on individual income, corporation tax on profits of companies, property tax, inheritance tax and gift tax, in the current fiscal is 35 per cent higher than the collection of Rs 9.56 lakh crore in the pre-pandemic year of 2019-20 (April 2019 to March 2020). Advance tax collections, the fourth installment of which was due on March 15, rose to Rs 6.62 lakh crore, up 40.75 per cent, the statement said, adding refunds aggregating to Rs 1.87 lakh crore have been issued in the current fiscal. Almost 53 per cent of all direct tax collection was from corporate tax, while 47 per cent came from personal income tax, including securities transaction tax (STT) on shares.

The CNX Nifty is currently trading at 17255.25, down by 31.80 points or 0.18% after trading in a range of 17250.60 and 17353.35. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.17%, Maruti Suzuki up by 2.57%, Sun Pharma up by 2.00%, Cipla up by 1.98% and ONGC up by 1.76%. On the flip side, Kotak Mahindra Bank down by 1.75%, Hindustan Unilever down by 1.67%, IOC down by 1.65%, Asian Paints down by 1.62% and Adani Ports & SEZ down by 1.53% were the top losers.

Asian markets are trading mixed; Straits Times rose 5.95 points or 0.18% to 3,336.58, Taiwan Weighted added 129.11 points or 0.74% to 17,585.63 and Shanghai Composite was up by 0.51 points or 0.02% to 3,251.58. On the other hand, Hang Seng fell 18.13 points or 0.08% to 21,394.27, KOSPI declined 10.92 points or 0.40% to 2,696.10 and Jakarta Composite was down by 8.71 points or 0.13% to 6,946.26.