Benchmarks extend gains in late morning deals

Indian equity benchmarks extended gains in late morning deals, led by gains in IT, TECK and Realty stocks. Sentiments remained positive with the Central Board of Direct Taxes (CBDT) stating that the net direct tax collection so far this fiscal rose 19.41 per cent to Rs 14.70 lakh crore from the corresponding period of last year. The provisional figures of Direct Tax collections up to January 10, 2024, continue to register steady growth. Traders overlooked Reserve Bank of India’s (RBI) data showing that India’s outward foreign direct investment (FDI) commitments fell sharply to $2.25 billion in December 2023, compared to over $4.12 billion in December 2022. Sequentially, they were also down from $4.0 billion in November 2023. Investors digested key earnings and awaited IIP and CPI data later in the day for clues to RBI's upcoming interest-rate decisions. On the global front, Asian markets are trading mixed following cautious comments from Fed officials after the release of hotter-than-expected U.S. consumer price inflation data. Investors also watched oil price movements closely after U.K. allowed military action in Yemen.

The BSE Sensex is currently trading at 72335.69, up by 614.51 points or 0.86% after trading in a range of 71982.29 and 72378.55. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.31%, while Small cap index was up by 0.60%.

The top gaining sectoral indices on the BSE were IT up by 4.76%, TECK up by 3.92%, Realty up by 1.96%, Oil & Gas up by 0.86% and PSU up by 0.71%, while Auto down by 0.64%, Healthcare down by 0.24%, Consumer Durables down by 0.20%, Power down by 0.06% and Consumer Disc down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 6.96%, Tech Mahindra up by 4.61%, Wipro up by 4.18%, TCS up by 3.74% and HCL Technologies up by 2.66%. On the flip side, Mahindra & Mahindra down by 1.41%, Asian Paints down by 1.16%, Bajaj Finserv down by 0.83%, Titan Company down by 0.82% and Power Grid Corporation down by 0.74% were the top losers.

Meanwhile, the finance ministry has said the GST intelligence unit detected tax evasion of more than Rs 1.98 lakh crore last year and arrested 140 masterminds who were involved in defrauding the exchequer. In 2023, the Directorate General of GST Intelligence (DGGI) detected significant GST evasion in diverse sectors like online gaming, casinos, insurance and secondment (import of manpower services).

The ministry stated ‘DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs 1,98,324 crore with a voluntary payment of Rs 28,362 crore. 140 masterminds involved in GST evasion were arrested.’

This is a significant improvement as compared to 2022 wherein 4,273 cases were detected, amounting to duty of Rs 90,499 crore, and voluntary payment of Rs 22,459 crore and 97 arrests were made. With regard to detection of fake Input Tax Credit (ITC) claims, the ministry said DGGI has initiated a special drive against ITC fraudsters to plug the leakage in government revenue. As a result, 2,335 cases with ITC fraud of Rs 21,078 crore were detected, with a voluntary payment of Rs 2,642 crore.

The CNX Nifty is currently trading at 21820.70, up by 173.50 points or 0.80% after trading in a range of 21715.15 and 21832.00. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Infosys up by 7.07%, Tech Mahindra up by 4.53%, Wipro up by 4.23%, LTIMindtree up by 3.99% and TCS up by 3.71%. On the flip side, Mahindra & Mahindra down by 1.39%, Cipla down by 1.37%, Asian Paints down by 1.19%, Bajaj Finserv down by 0.91% and Titan Co down by 0.86% were the top losers.

Asian markets are trading mixed; Taiwan Weighted lost 20.01 points or 0.11% to 17,525.31, Hang Seng declined 5.95 points or 0.04% to 16,296.09, Straits Times fell 14.84 points or 0.46% to 3,186.57 and KOSPI dropped 20.33 points or 0.8% to 2,519.94.

On the flip side, Jakarta Composite gained 0.77 points or 0.01% to 7,220.73, Shanghai Composite weakened 0.34 points or 0.01% to 2,886.31 and Nikkei 225 surged 481.8 points or 1.37% to 35,531.66.