Markets continue to trade in red amid mixed cues from other Asian markets

Indian equity markets continued to trade in red in late morning deals amid mixed cues from other Asian markets. Sentiments remained weak as the dollar and bond yields climbed on comments from a Fed official that the fight against inflation is not over and interest rates will stay high for a while. Traders overlooked report that Reserve Bank of India (RBI) Governor Shaktikanta Das has exuded confidence that India will continue to be the fastest growing major economy with a likely growth rate of 7 per cent in current financial year (FY23) on the back of strong macroeconomic fundamentals and financial sector stability.

On the global front, Asian markets were trading mixed, despite the broadly positive cues from the US markets on Friday, on continued optimism about the US Fed slowing the pace of interest rate hikes following recent tamer-than-expected US inflation data. Back home, on the BSE Sectoral front, traders were seen pilling up position in Metal, IT, TECK, Auto and Oil & Gas, while selling was witnessed in Power, Telecom, Utilities, Capital Goods and FMCG.  In the stock specific development, Aurobindo Pharma dropped after the company reported a weak set of numbers in the September quarter (Q2FY23).

The BSE Sensex is currently trading at 61658.29, down by 136.75 points or 0.22% after trading in a range of 61617.67 and 61916.24. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.01%, while Small cap index up by 0.28%.

The top gaining sectoral indices on the BSE were Metal up by 1.71%, IT up by 0.85%, TECK up by 0.43%, Auto up by 0.38% and Oil & Gas up by 0.24%, while Power down by 0.61%, Telecom down by 0.60%, Utilities down by 0.55%, Capital Goods down by 0.40% and FMCG down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.53%, Kotak Mahindra Bank up by 1.27%, Tech Mahindra up by 1.08%, Infosys up by 1.04% and HCL Tech. up by 0.67%. On the flip side, Dr. Reddy's Lab down by 4.20%, Power Grid Corp down by 1.47%, ICICI Bank down by 1.16%, Hindustan Unilever down by 1.14% and Bharti Airtel down by 0.94% were the top losers.

Meanwhile, the tax department has said that gross collection of tax on corporate and individual earnings jumped nearly 31 per cent so far in the current fiscal year (FY23) to Rs 10.54 lakh crore. This includes a 41 per cent growth in personal income tax (including Securities Transaction Tax) mop up and 22 per cent increase in corporate tax revenues over the same period last year.

After adjusting for refunds, the net direct tax collections between April 1-November 10 stood at Rs 8.71 lakh crore, which is 61.31 per cent of the Budget estimates (BE) for the full-year tax collection target. The Budget had estimated direct tax collection at Rs 14.20 lakh crore this fiscal, higher than Rs 14.10 lakh crore collected last fiscal (2021-22).

Refunds amounting to Rs 1.83 lakh crore have been issued between April 1-November 10, 61 per cent higher than what was issued in the corresponding period last year. Tax collection is an indicator of economic activity in any country. Collection from levy of tax on goods and services sold (GST) has flattened at around Rs 1.45-1.50 lakh crore per month.

The CNX Nifty is currently trading at 18334.70, down by 15.00 points or 0.08% after trading in a range of 18327.20 and 18399.45. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.70%, Tata Motors up by 2.81%, Apollo Hospital Ent. up by 2.72%, Grasim Industries up by 2.30% and Tata Steel up by 1.49%. On the flip side, Dr. Reddy's Lab down by 4.09%, Power Grid Corp down by 1.42%, Hindustan Unilever down by 1.22%, ICICI Bank down by 1.14% and ITC down by 0.98% were the top losers.

Asian markets were trading mixed, Hang Seng increased 282.25 points or 1.63% to 17,607.91, Taiwan Weighted strengthened 167.34 points or 1.19% to 14,174.90 and Straits Times advanced 45.17 points or 1.4% to 3,273.50, while KOSPI fell 8.93 points or 0.36% to 2,474.23, Jakarta Composite lost 45.74 points or 0.65% to 7,043.47 and Nikkei 225 slipped 265.32 points or 0.94% to 27,998.25 and Shanghai Composite declined 5.03 points or 0.16% to 3,082.26.