Sensex, Nifty trade flat amid volatility

Indian equity benchmarks erased initial gains and were trading flat in morning deals amid volatility. Traders got anxious as latest data by the Reserve Bank of India (RBI) showed India's foreign exchange reserves are down by $30 million at $594.85 billion for the week ending August 25. Traders overlooked Economic Affairs Secretary Ajay Seth’s statement that the government is confident of meeting the fiscal deficit target of 5.9 per cent of gross domestic product (GDP) and the nominal GDP target of 10.5 per cent despite pressure in the initial months of FY24. Meanwhile, data with the Securities and Exchange Board of India (SEBI) showed that investment in the Indian capital markets through participatory notes rose to close to a six-year high at Rs 1.23 lakh crore in July-end, making it the fifth consecutive monthly increase, on the back of stable macroeconomic fundamentals. The amount has reached the highest level since December 2017 -- when investment through the route stood at Rs 1.25 lakh crore. On the global front, Asian markets are trading higher, led by China shares, amid talk that all of Beijing's small policy steps might actually add up to real stimulus at some stage. The next move is expected to be a relaxation of restrictions on property buyers. 

The BSE Sensex is currently trading at 65373.20, down by 13.96 points or 0.02% after trading in a range of 65341.45 and 65630.85. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.72%, while Small cap index was up by 0.84%.

The top gaining sectoral indices on the BSE were Metal up by 2.70%, Realty up by 1.65%, PSU up by 1.53%, Utilities up by 0.93% and Industrials up by 0.88%, while FMCG down by 0.36%, Bankex down by 0.27% and Consumer Durables down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.74%, Ultratech Cement up by 3.15%, JSW Steel up by 1.22%, NTPC up by 1.04% and Wipro up by 0.97%. On the flip side, Asian Paints down by 0.92%, ITC down by 0.79%, Axis Bank down by 0.78%, Nestle down by 0.75% and Mahindra & Mahindra down by 0.74% were the top losers.

Meanwhile, the Finance Ministry has said that Goods and Services Tax (GST) collections grew by 11 per cent to over Rs 1.59 lakh crore in August 2023, on the back of improved compliance and reduced evasion, with experts forecasting higher mop-up to continue in the upcoming festive season. It stated the gross GST revenue collected in August 2023 is Rs 1,59,069 crore of which Central GST is Rs 28,328 crore, State GST is Rs 35,794 crore, Integrated GST is Rs 83,251 crore (including Rs 43,550 crore collected on import of goods) and cess is Rs 11,695 crore (including Rs 1,016 crore collected on import of goods). The Goods and Services Tax collection was over Rs 1.43 lakh crore in August 2022.

It mentioned ‘The revenues for the month of August 2023 are 11 per cent higher than the GST revenues in the same month last year. During the month, revenue from import of goods was 3 per cent higher and the revenues from domestic transactions (including import of services) are 14 per cent higher than the revenues from these sources during the same month last year.’

Besides, Revenue Secretary Sanjay Malhotra said GST collections have grown more than the nominal GDP growth rate in the April-June quarter despite no increase in tax rates. This is because of better compliance and improved tax collection efficiency. He added tax evasion and avoidance too have been low.

The CNX Nifty is currently trading at 19454.40, up by 19.10 points or 0.10% after trading in a range of 19435.30 and 19526.80. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 3.66%, Coal India up by 3.36%, Ultratech Cement up by 3.15%, Hindalco up by 2.91% and Grasim Industries up by 1.74%. On the flip side, Asian Paints down by 0.98%, Nestle down by 0.85%, Mahindra & Mahindra down by 0.79%, SBI Life Insurance down by 0.78% and Tata Consumer Product down by 0.77% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 469.29 points or 2.49% to 18,851.35, Taiwan Weighted added 108.47 points or 0.65% to 16,753.41, Straits Times rose 6.16 points or 0.19% to 3,239.46, Shanghai Composite strengthened 35.13 points or 1.11% to 3,168.38, Jakarta Composite gained 24.37 points or 0.35% to 7,002.02, KOSPI increased 12.49 points or 0.48% to 2,576.20 and Nikkei 225 surged 156.51 points or 0.48% to 32,867.13.