Domestic indices magnify gains in late morning deals

Domestic equity indices magnified their gains and were trading higher with gains of over one and half percent in late mooning deals as market participants indulged in enlarging their positions. Hectic buying in Reliance Industries, Infosys, TCS, Power Grid and NTPC helped the markets to magnify their gains. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets also participated in the rally. Sentiments got boost as the 10-year U.S. Treasury yield slumped to a one-month low. Support also came in as the government has targeted a fiscal deficit of 5.1 percent of the GDP for 2024-25. In absolute terms, the fiscal deficit for 2024-25 is seen at Rs 16.85 lakh crore, with the number for 2023-24 lowered to Rs 17.35 lakh crore from the budget estimate of Rs 17.87 lakh crore. Support also came in as Commerce and Industry Minister Piyush Goyal said India has sustained its export growth notwithstanding the global challenges emerging due to issues like the Israel-Hamas war and the Budget has laid out a strong foundation to push the economic growth.

On the global front, Asian markets were trading mostly in green following positive cues from the US markets overnight. Back home, all the sectoral indices on the BSE were trading in green led by Oil & Gas, Energy, PSU, Utilities and Power. 

The BSE Sensex is currently trading at 72786.27, up by 1140.97 points or 1.59% after trading in a range of 71977.56 and 72793.22. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.25%, while Small cap index up by 1.17%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.39%, Energy up by 3.28%, PSU up by 2.99%, Utilities up by 2.93% and Power up by 2.84%, while there were no losers.  

The top gainers on the Sensex were Power Grid up by 5.47%, Reliance Industries up by 3.31%, Infosys up by 3.04%, NTPC up by 2.89% and TCS up by 2.67%. On the flip side, Axis Bank down by 0.05% was the only loser.

Meanwhile, the government's gross tax revenue is projected to grow 11.46 per cent to Rs 38.31 trillion in the next fiscal (FY25), buoyed by 11.6 per cent growth in Goods and Services Tax (GST) collections. GST collection in 2024-25 is estimated to rise to Rs 10.68 trillion, an increase of Rs 1.1 trillion or 11.6 per cent.

As per the Interim Budget 2024-25, of the total tax collections, Rs 21.99 trillion is estimated to come from direct taxes (personal income tax + corporate tax), and Rs 16.22 trillion from indirect taxes (customs + excise duty +GST). In the current fiscal (FY24), the government estimates gross tax revenue to exceed the budget estimated by about Rs 76,000 crore. The budgeted tax revenue for current fiscal was Rs 33.61 trillion, while the revised estimate pegs it at Rs 34.37 trillion, as per the Interim Budget 2024-25. 

Even though the corporate tax collections remained as per the FY24 budget estimates, the personal income tax collection is expected to overshoot budget estimates by over Rs 1.20 trillion in current fiscal. While the revised estimate for customs and excise duty collections has been lowered to Rs 2.19 trillion and Rs 3.08 trillion respectively, GST collections are estimated at the budgeted level of Rs 9.57 trillion in current fiscal ending March 31, 2024. 

The CNX Nifty is currently trading at 22042.75, up by 345.30 points or 1.59% after trading in a range of 21812.00 and 22048.85. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were BPCL up by 6.03%, Power Grid up by 5.49%, Adani Ports up by 4.92%, Hero MotoCorp up by 3.78% and Reliance Industries up by 3.28%. On the flip side, Eicher Motors down by 1.51% and HDFC Life Insurance down by 0.63% were the only losers.

Asian markets were trading mostly in green; Nikkei 225 surged 146.24 points or 0.41% to 36,157.70, Taiwan Weighted added 91.82 points or 0.51% to 18,059.93, Straits Times rose 38.6 points or 1.23% to 3,181.66 and KOSPI increased 71.21 points or 2.8% to 2,613.67. However, Shanghai Composite weakened 51.85 points or 1.87% to 2,718.89, Jakarta Composite plunged 9.23 points or 0.13% to 7,192.47 and Hang Seng declined 25.31 points or 0.16% to 15,540.90.