Post Session: Quick Review

Indian equity benchmarks gave powerful performance on monthly F&O expiry day and ended with a gains of above a percent. Key indices made positive start, as traders got encouragement after Federal Reserve's November meeting minutes showed interest rate hikes may slow soon. Some additional support also came after Revenue Secretary Tarun Bajaj said India's tax collection will exceed the budget estimate by nearly Rs 4 lakh crore in the current fiscal on the back of buoyant income tax, customs duty and GST mop-up. Markets extended their gains, as local investors cheered after S&P Global Market Intelligence projected India’s real gross domestic product (GDP) growth to average 6.3 per cent annually between financial years 2021 and 2030, enabling it to overtake Japan and Germany to become the world’s third-largest economy in nominal US dollar terms.

Indices continued to move forward in afternoon session, as sentiments were largely positive with Union Home Minister Amit Shah’s statement that ‘we are moving at a fast pace towards achieving target of USD 5 trillion economy by 2025’. The street ignored a private report stating that the Indian economy is projected to grow 5.9 per cent in 2023, lower than 6.9 per cent growth estimated this year. Traders also overlooked the data of the Department for Promotion of Industry and Internal Trade (DPIIT) showed that Foreign Direct Investment (FDI) equity inflows into India contracted by 14 per cent to USD 26.9 billion during the April-September this fiscal. The inflows had stood at USD 31.15 billion during the corresponding period of the previous year. In late afternoon session, markets touched their 52-week high points amid rupee gained against dollar. Some comfort also came with report stated that Indian banking system is much better placed than the last cycle, and will be able to sustain the current round of high loan growth. It also said learnings from the last cycle of high loan growth which ultimately led to a huge spurt in sour loans have been internalised by the banking system.

On the global front, European markets were trading higher after minutes from the Federal Reserve's November meeting signaled a slowdown in future rate hikes. Asian markets ended mostly in green. Back home, in scrip specific development, Keystone Realtors has debuted at Rs 555.00 on the BSE, up by 14 points or 2.59% from its issue price of Rs 541. The offering, which was open for subscription between November 14, 2022 and November 16, 2022 was subscribed 2.01 times. The issue price was fixed at Rs 541 per share i.e. at upper end of price band of Rs 514-541 apiece. 

The BSE Sensex ended at 62,272.68, up by 762.10 points or 1.24% after trading in a range of 61,600.42 and 62,412.33. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.52%, while Small cap index was up by 0.42%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 2.30%, TECK up by 2.12%, Oil & Gas up by 1.25%, PSU up by 1.09% and Capital Goods was up by 0.98%, while Consumer Durables down by 0.02% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Infosys up by 3.26%, HCL Tech up by 2.94%, Wipro up by 2.57%, Power Grid up by 2.49% and Tech Mahindra up by 2.40%. On the flip side, Bajaj Finserv down by 0.14% and Kotak Mahindra Bank down by 0.09% were the top losers. (Provisional)

Meanwhile, revenue Secretary Tarun Bajaj has expressed optimism over India’s tax collection and said that it will exceed the budget estimate by nearly Rs 4 lakh crore in the current fiscal (FY23) on the back of buoyant income tax, customs duty and GST mop-up. He said the growth in tax revenues will continue to be higher than the GDP growth, helped by formalisation of the economy and better compliance. For this financial year ending March 2023 (FY23), the tax collection target set in the Union Budget is around Rs 27.50 lakh crore.

He said the direct tax collection comprising personal and corporate taxes would be close to Rs 17.50 lakh crore in the current fiscal. Mop up from indirect taxes (customs, excise and GST) would be close to Rs 14 lakh crore. He added that the total tax collection is expected to be about Rs 31.50 lakh crore in 2022-23. The Budget had pegged direct and indirect tax mop up at Rs 14.20 lakh crore and Rs 13.30 lakh crore for current fiscal, taking the total figure to Rs 27.50 lakh crore. Last fiscal, the direct tax collection grew nearly 50 per cent to Rs 14.10 lakh crore compared to 2020-21.

He further said ‘We are using a lot of data. We have data from income tax and GST departments, and MCA (Ministry of Corporate Affairs). We are also getting data regarding high value expenditure. Formalisation of economy and technology has helped improved compliance’. He noted that ‘The trend of higher tax collection than GDP growth will continue’. He also said that even though there was a reduction in customs and excise duties during this fiscal, the government will be very close to the target set in the Budget. The Budget has set a target of collecting Rs 2.13 lakh crore and Rs 3.35 lakh crore from customs and excise duties, respectively.

The CNX Nifty ended at 18484.10, up by 216.85 points or 1.19% after trading in a range of 18294.25 and 18529.70. There were 43 stocks advancing against 7 stocks declining on the index. (Provisional)

The top gainers on Nifty were Apollo Hospital up by 4.56%, HDFC Life Insurance up by 4.55%, BPCL up by 3.50%, Infosys up by 2.95% and Tata Consumer up by 2.93%. On the flip side, Cipla down by 1.14%, Coal India down by 0.91%, Kotak Mahindra Bank down by 0.44%, Tata Motors down by 0.15% and Bajaj Finance down by 0.13% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 8.22 points or 0.11% to 7,473.46, France’s CAC increased 35.78 points or 0.54% to 6,714.87 and Germany’s DAX was up by 111.08 points or 0.77% to 14,538.67.

Asian markets settled mostly higher on Thursday, tracking Wall Street gains overnight after the Federal Reserve November meeting minutes showed signs of slowing down of pace of interest rate hikes in its upcoming meetings. The Japanese Nikkei marked the highest level since September 13. Seoul shares rose sharply after the Bank of Korea delivered a modest 25-basis point rate hike in line with expectations. However, Chinese shares dropped, even as property shares jumped after four of China's biggest banks agreed to provide fundraising support to property developers. Meanwhile, China's daily Covid cases have hit a record high since the beginning of the pandemic.