Barometer gauges continue to trade deep in red

Indian benchmarks continued to trade deep in red in morning session, with Sensex and Nifty plunging around 590 and 170 points respectively, dragged by index heavyweights HDFC Bank, Reliance Industries, and JSW Steel amidst negative global cues. Sentiments remained pessimistic as the equity foreign direct investment (FDI) into India declined sharply to $13.9 billion in April-July 2023 from $22.04 billion a year ago, showing the effect of the slowdown in global economic activity. Some cautiousness also crept in with exchange data showing that foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,236.51 crore on Monday. Traders also took a note of Reserve Bank of India (RBI) data showing that outward remittances under the RBI’s liberalised remittance scheme (LRS) for resident individuals declined by 39.36 per cent in July 2023 compared to the previous month. This month-on-month (M-o-M) fall was due to a steep decline in funds sent for maintenance of close relatives. On the global front, Asian markets are trading mostly in red as investors awaited the U.S. Federal Reserve's monetary policy announcement later in the day for direction. The U.S. central bank is widely expected to leave interest rates unchanged, with traders likely to pay close attention to the accompanying statement, updated economic forecasts and commentary around the path of inflation and future of monetary policy.

The BSE Sensex is currently trading at 67008.90, down by 587.94 points or 0.87% after trading in a range of 66967.60 and 67294.16. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.16%, while Small cap index was down by 0.29%.

The top gaining sectoral indices on the BSE were PSU up by 0.25%, Power up by 0.20%, Utilities up by 0.11%, Consumer Durables up by 0.08% and Capital Goods up by 0.07%, while Realty down by 0.80%, Bankex down by 0.69%, Oil & Gas down by 0.63%, Telecom down by 0.61% and Energy down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 1.02%, Axis Bank up by 0.93%, Mahindra & Mahindra up by 0.81%, NTPC up by 0.77% and Tata Motors up by 0.67%. On the flip side, HDFC Bank down by 3.81%, Reliance Industries down by 1.64%, JSW Steel down by 1.31%, Maruti Suzuki down by 1.24% and Ultratech Cement down by 1.12% were the top losers.

Meanwhile, the Finance Ministry has said that net direct tax collection grew 23.51 per cent to over Rs 8.65 lakh crore till mid-September 2023, on higher advance tax mop-up from corporates. The ministry stated that the net direct tax collection of Rs 8,65,117 crore (as on September 16) includes corporate income tax (CIT) at Rs 4,16,217 crore and personal income tax (PIT) including Securities Transaction Tax (STT) at Rs 4,47,291 crore. Net collections was Rs 7,00,416 crore in the corresponding period of the preceding Financial Year (i.e. FY 2022-23).

It said advance tax collections stood at Rs 3.55 lakh crore till mid-September, a 21 per cent growth against Rs 2.94 lakh crore collected in the corresponding period of the preceding financial year. The advance tax collection of Rs 3.55 lakh crore as on September 16, comprises CIT at Rs 2.80 lakh crore and PIT at Rs 74,858 crore. 

Further, it said refunds of about Rs 1.22 lakh crore have been issued up to September 16. On a gross basis, direct tax collection for the financial year 2023-24 (as on September 16) stood at Rs 9.87 lakh crore, a 18.29 per cent growth over Rs 8.34 lakh crore in the corresponding period of the preceding financial year.

The CNX Nifty is currently trading at 19966.80, down by 166.50 points or 0.83% after trading in a range of 19952.35 and 20050.65. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 1.02%, Power Grid Corporation up by 1.02%, NTPC up by 0.85%, Coal India up by 0.84% and Bajaj Auto up by 0.80%. On the flip side, HDFC Bank down by 3.85%, Apollo Hospital down by 2.06%, BPCL down by 1.86%, Reliance Industries down by 1.71% and Britannia Industries down by 1.61% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 187.3 points or 0.56% to 33,055.29, Taiwan Weighted lost 93.57 points or 0.56% to 16,542.75, KOSPI dropped 7.19 points or 0.28% to 2,552.02, Straits Times fell 8.07 points or 0.25% to 3,232.68, Shanghai Composite weakened 10.9 points or 0.35% to 3,114.06 and Hang Seng declined 139.91 points or 0.78% to 17,857.26.

On the flip side, Jakarta Composite gained 51.84 points or 0.74% to 7,032.16.