Domestic markets trade in fine-fettle in early deals

Indian equity benchmarks made optimistic start on Tuesday following the broadly positive cues from the US markets overnight and positive trade in Asian markets, as investors hoped this week's US inflation data supports an imminent end to the Fed rate hikes. Also, China signaled more economic measures to support the ailing property market. All eyes are now on the kick start of domestic Q1 earnings season. Domestic markets are trading in fine-fettle with gains of over 0.60% each in early deals as traders went for value buying. Sentiments got some support as provisional data available with NSE suggest that FPIs turned net buyers of domestic stocks to the tune of Rs 588.48 crore on July 10. Traders took encouragement as India’s direct tax collection soared 16 per cent to touch Rs. 4.75 trillion this financial year, showing continuity in revenue growth despite external headwinds.

On the sectoral front, power stocks are in focus as the government data showed that power consumption grew by 4.4 per cent to 139.23 billion units in June this year compared to 133.26 billion units last year. In stock specific development, Tata Communications rallied after it signed a share purchase agreement to acquire the remaining 41.9 per cent stake in eSIM company OSSE France for Rs 99.3 crore. However, Vedanta declined after Taiwan's Foxconn pulled out of a semiconductor joint venture with the company.

The BSE Sensex is currently trading at 65738.68, up by 394.51 points or 0.60% after trading in a range of 65517.57 and 65746.12. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.77%, while Small cap index was up by 0.73%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.25%, Telecom up by 1.12%, Industrials up by 1.12%, Healthcare up by 1.06% and Auto up by 1.04%, while Metal down by 0.14% was the sole losing index on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.70%, Bajaj Finserv up by 1.49%, Maruti Suzuki up by 1.46%, Bajaj Finance up by 1.45% and Asian Paints up by 1.28%. On the flip side, SBI down by 0.30%, Tata Steel down by 0.22%, NTPC down by 0.08% and Wipro down by 0.03% were the top losers.

Meanwhile, in a reflection of economic activity gaining traction, the Income Tax department in its latest data has showed that net direct tax kitty swelled 15.87 per cent to Rs 4.75 lakh crore so far this fiscal over the net collections for the corresponding period of last year. The collection has touched 26.05 per cent of the total budget estimates of direct taxes for full 2023-24 fiscal of Rs 18.23 lakh crore.

Refunds amounting to Rs 42,000 crore have been issued during April 1- July 9, 2023, which are 2.55 per cent higher than refunds issued during the same period in the preceding year.

On a gross basis, collection from direct taxes, which includes income and corporate taxes, grew 14.65 per cent to Rs 5.17 lakh crore. The 2023-24 budget has pegged direct tax collection at a little over Rs 18.23 lakh crore, a 9.75 per cent higher than Rs 16.61 lakh crore mopped up last fiscal.

The CNX Nifty is currently trading at 19475.35, up by 119.45 points or 0.62% after trading in a range of 19406.45 and 19477.80. There were 42 stocks advancing against 6 stocks declining, while 2 stocks remain unchanged on the index.

The top gainers on Nifty were HDFC Life Insurance up by 1.98%, Apollo Hospital up by 1.87%, Sun Pharma up by 1.87%, Britannia Industries up by 1.81% and Bajaj Finserv up by 1.55%. On the flip side, UPL down by 2.14%, JSW Steel down by 0.52%, Hero MotoCorp down by 0.42%, SBI down by 0.28% and Tata Steel down by 0.26% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 268.91 points or 1.46% to 18,748.63, Taiwan Weighted added 220.6 points or 1.32% to 16,873.40, Jakarta Composite gained 37.43 points or 0.56% to 6,768.47, KOSPI increased 33.63 points or 1.33% to 2,554.33, Shanghai Composite strengthened 15.5 points or 0.48% to 3,219.20, Nikkei 225 surged 6.54 points or 0.02% to 32,196.27 and Straits Times rose 2.09 points or 0.07% to 3,151.41.