Weak trade continues over Dalal Street

Weak trade continued over the Dalal Street in late morning session, on the back of negative cues from other Asian markets, however key indices managed to trim some losses. Losses got cut, as traders got support after the Central Board of Direct Taxes (CBDT) has said that gross collection of tax on corporate and individual earnings jumped nearly 24 percent so far in the current fiscal year that started on April 1, 2022. Besides, after withdrawing over Rs 7,600 crore last month, foreign investors have resumed buying Indian stocks and have invested more than Rs 2,400 crore in the domestic equity markets in the first week of October. However, indices remained in red, amid reports that exporters are keeping their fingers crossed due to ‘visible’ recessionary trends in the European Union (EU) as it could affect demand for domestic goods in that market in the coming months.

Asian markets were trading lower, even after confidence among Indonesian consumers remained strong in September despite easing from August. The survey data from the Bank Indonesia showed that the consumer confidence index dropped to a five-month low of 117.2 in September from 124.7 in the previous month. However, a reading above 100 indicates optimism among households.

The BSE Sensex is currently trading at 57624.96, down by 566.33 points or 0.97% after trading in a range of 57365.68 and 57640.84. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.95%, while Small cap index was down by 0.48%.

The top losing sectoral indices on the BSE were FMCG down by 1.54%, Auto down by 1.25%, Capital Goods down by 1.16%, Industrials down by 1.02% and Power down by 0.95%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Axis Bank up by 1.45%, Power Grid up by 0.79%, TCS up by 0.70% and Maruti Suzuki up by 0.08%. On the flip side, Asian Paints down by 2.34%, ITC down by 2.19%, HDFC down by 1.73%, Hindustan Unilever down by 1.73% and HDFC Bank down by 1.68% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) has said that gross collection of tax on corporate and individual earnings jumped nearly 24 percent so far in the current fiscal year that started on April 1, 2022. CBDT said direct tax collection came at Rs 8.98 lakh crore between April 1 to October 8, 2022, 23.8 percent higher than the gross collection in the corresponding period a year ago. Tax on corporate and individual income makes up for direct taxes. The gross collection of taxes on corporate earnings rose 16.74 percent from April 1 to October 8, while personal income tax collection jumped 32.30 percent.

After adjusting refunds, direct tax collection stood at Rs 7.45 lakh crore, 16.3 percent higher than the net collection for the corresponding period a year ago. This collection is 52.46 percent of the total Budget Estimates of Direct Taxes for FY 2022-23. Tax collection is an indicator of economic activity in any country. But in India, the robust tax collection was despite a slowdown in industrial production and exports.

It further said that so far as the growth rate for corporate income tax (CIT) and personal income tax (PIT) in terms of gross revenue collection is concerned, the growth rate for CIT is 16.73 percent, while that for PIT (including STT) is 32.30 percent. After the adjustment of refunds, the net growth in CIT collection was 16.29 percent, and that in PIT collection was 17.35 percent (PIT only)/16.25 percent (PIT including STT). Refunds amounting to Rs 1.53 lakh crore have been issued during the period April 1, 2022, to October 8, 2022, 81 percent higher than the refunds issued during the same period in the preceding year.

The CNX Nifty is currently trading at 17141.15, down by 173.50 points or 1.00% after trading in a range of 17064.70 and 17149.65. There were 4 stocks advancing against 45 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Axis Bank up by 1.54%, Power Grid up by 0.81%, TCS up by 0.69%, Maruti Suzuki up by 0.26% and Coal India up by 0.00%. On the flip side, Tata Motors down by 3.95%, Hero MotoCorp down by 2.82%, Tata Consumer Products down by 2.70%, Asian Paints down by 2.36% and ITC down by 2.20% were the top losers.

Asian markets were trading lower; Jakarta Composite lost 44.23 points or 0.63% to 6,982.55, Straits Times trembled 35.83 points or 1.14% to 3,109.98, Shanghai Composite declined 31.08 points or 1.03% to 2,993.31 and Hang Seng decreased 505.41 points or 2.85% to 17,234.64.