Benchmarks trade flat in morning deals

Indian equity benchmarks were trading flat in morning deals, as investors remained on sidelines ahead of Consumer Price Index (CPI) or retail inflation and Index of Industrial Production (IIP) data to be out late in the day, for more directional cues. However, traders took some support with the Reserve Bank of India (RBI) in its report on state budgets, which is done annually, stating that states' finances improved in FY23, and there is a need to look at asset monetisation to help garner non-tax revenues. It stated road, transport and power sectors hold considerable potential where the states can undertake asset sales. Traders took a note of report that the government is likely to stick to the budgeted estimate of total tax collection target of Rs 33.61 lakh crore for current fiscal in the revised estimates. So far, direct tax collection is up by about 20 per cent and indirect tax is higher by 5 per cent. On the global front, Asian markets are trading higher driven by anticipation surrounding crucial economic data from the US and forthcoming meetings of major central banks, with potential insights into prospective interest rate cuts in the coming year.

The BSE Sensex is currently trading at 69911.20, down by 17.33 points or 0.02% after trading in a range of 69814.34 and 70033.64. 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 0.13%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Basic Materials up by 0.59%, IT up by 0.59%, Metal up by 0.35%, TECK up by 0.34% and Healthcare up by 0.33%, while Oil & Gas down by 1.13%, Capital Goods down by 0.90%, Energy down by 0.88%, Power down by 0.82% and Utilities down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.60%, Wipro up by 1.33%, TCS up by 1.25%, ITC up by 0.92% and Tata Steel up by 0.77%. On the flip side, Larsen & Toubro down by 1.14%, Titan Company down by 0.88%, Bharti Airtel down by 0.87%, NTPC down by 0.73% and Maruti Suzuki down by 0.55% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its report on state budgets, which is done annually, has said that states' finances improved in FY23, and there is a need to look at asset monetisation to help garner non-tax revenues. It stated road, transport and power sectors hold considerable potential where the states can undertake asset sales.

It said ‘States need to scale up their initiatives for asset monetisation in order to increase non-tax revenue. The monetisation of assets unlocks their value, eliminates their holding cost and enables scarce public funds to be deployed into new projects, thus fast-tracking new infrastructure creation.’ It also said mobilising revenues by undertaking a comprehensive review of unutilised land assets and converting them into revenue-generating industrial estates or doing an outright sale.

Further, it said that in the case of non-operational public sector undertakings (PSUs), states may expedite their liquidation to curb losses. States can also look at shoring up the non-tax revenues through revising user charges on electricity, water and other public services, royalties and premiums from mining, and better financial management of their PSUs. 
It said States' fiscal deficit improved for the second consecutive year in FY23, with the gross fiscal deficit getting contained at 2.8 per cent, adding that in FY24, it is set to come at 3.1 per cent of GDP.

The CNX Nifty is currently trading at 21005.10, up by 8.00 points or 0.04% after trading in a range of 20975.05 and 21037.90. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.22%, Ultratech Cement up by 1.75%, HDFC Life Insurance up by 1.45%, Hero MotoCorp up by 1.43% and Bajaj Auto up by 1.33%. On the flip side, BPCL down by 3.67%, Eicher Motors down by 1.33%, Coal India down by 1.24%, Larsen & Toubro down by 1.17% and Bharti Airtel down by 0.92% were the top losers.

All Asian markets are trading higher; Nikkei 225 surged 24.3 points or 0.07% to 32,816.10, Taiwan Weighted added 8.78 points or 0.05% to 17,427.12, Hang Seng advanced 137.02 points or 0.84% to 16,338.51, Straits Times rose 12.9 points or 0.42% to 3,103.10, KOSPI increased 11.21 points or 0.44% to 2,536.57, Jakarta Composite gained 13.82 points or 0.19% to 7,102.61 and Shanghai Composite strengthened 1.92 points or 0.06% to 2,993.36.