Benchmarks trade lower in early deals ahead of CPI inflation data

Indian equity benchmarks, after Samvat 2080 started on a bullish note on Sunday, opened Monday’s session in red terrain as investor focus shifted to the October CPI inflation data, slated to release later in the day. Mixed cues from Asian counterparts also impacted the domestic markets. Markets are trading lower with cut of around 0.40% each in early deals. Some cautiousness came in with a private report that Foreign Portfolio Investors (FPIs) selling spree continued as they dumped Indian equity worth over Rs 5,800 crore this month so far on rising interest rates and geopolitical tensions in the Middle East. This came after such investors withdrew Rs 24,548 crore in October and Rs 14,767 crore in September, data with the depositories showed. Traders were also concerned as the data released by the National Statistical Office (NSO) showed that growth in the Index of Industrial Production (IIP) cooled to a three-month low of 5.8 per cent in September from 10.3 per cent in August, on the back of moderation across all sub-sectors and use-based categories. 

On the global front, Asian markets are trading mixed amid concerns about interest rates and the impact of higher borrowing costs on global economic growth. The Moody's downgrading its ratings outlook on the US government from stable to negative is also weighing on the markets. Traders are also cautious ahead of US inflation data later in the week. Besides, the Bank of Japan said producer prices in Japan were down 0.4 percent on month in October. Meanwhile, markets in Malaysia and Singapore are closed for Deepavali holiday.

Back home, port sector stocks are in focus as Central government-owned ports, which are major ports and had been showing slow growth this financial year, saw a turnaround in October. The provisional data by the Indian Ports Association showed that there was 13 per cent growth in cargo and the ports handled 70 million tonnes (mt) of goods. In stock specific development, Eicher Motors rallied after reporting its highest ever quarterly profit and revenue in Q2.

The BSE Sensex is currently trading at 64966.98, down by 292.47 points or 0.45% after trading in a range of 64940.70 and 65176.96. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.30%, while Small cap index was down by 0.28%.

The few gaining sectoral indices on the BSE were Power up by 0.35%, Utilities up by 0.32%, Metal up by 0.25% and PSU up by 0.20%, while IT down by 0.70%, Realty down by 0.61%, TECK down by 0.61%, Consumer Durables down by 0.53% and Telecom down by 0.46% were the top losing indices on BSE.

The few gainers on the Sensex were NTPC up by 1.17%, Indusind Bank up by 0.35%, Sun Pharma up by 0.19% and Power Grid up by 0.12%. On the flip side, Bajaj Finance down by 0.98%, Infosys down by 0.78%, Nestle down by 0.76%, Hindustan Unilever down by 0.75% and Asian Paints down by 0.73% were the top losers.

Meanwhile, the Income Tax department has said that the provisional figures of Direct Tax collections up to November 09, 2023 in current financial year (FY24) continue to register steady growth. The Gross Direct Tax collections are at Rs 12.37 lakh crore, which is 17.59% higher than the gross collections for the corresponding period of last year. 

It stated Direct Tax collection, net of refunds, stands at Rs 10.60 lakh crore which is 21.82% higher than the net collections for the corresponding period of last year. This collection is 58.15% of the total Budget Estimates of Direct Taxes for FY 2023-24. So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 7.13% while that for PIT is 28.29% (PIT only)/ 27.98% (PIT including Securities Transactions Tax (STT)). 

After adjustment of refunds, the net growth in CIT collections is 12.48% and that in PIT collections is 31.77% (PIT only)/ 31.26% (PIT including STT). Refunds amounting to Rs 1.77 lakh crore have been issued during April 01, 2023 to November 09, 2023.

The CNX Nifty is currently trading at 19444.85, down by 80.70 points or 0.41% after trading in a range of 19440.90 and 19494.40. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 2.07%, Coal India up by 1.51%, NTPC up by 1.19%, Hindalco up by 0.82% and BPCL up by 0.40%. On the flip side, SBI Life Insurance down by 1.38%, ONGC down by 1.14%, Bajaj Finance down by 0.98%, Nestle down by 0.81% and Infosys down by 0.81% were the top losers.

Asian markets are trading mixed; Taiwan Weighted surged 142.12 points or 0.85% to 16,824.79, Jakarta Composite gained 22.74 points or 0.33% to 6,832.00 and Nikkei 225 added 22.53 points or 0.07% to 32,590.64. On the other hand, Hang Seng declined 24.46 points or 0.14% to 17,178.80, Shanghai Composite fell 5.66 points or 0.19% to 3,033.31 and KOSPI was down by 0.99 points or 0.04% to 2,408.67.