Markets trade near neutral lines with positive bias

Indian equity markets were trading near neutral lines with positive bias in late morning deals on account of buying in TCS, Tech Mahindra, HDFC Bank and HCL companies' stocks. Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.35-1.05%. Traders were getting encouragement as the World Bank has revised its earlier projection of Indian economy growth by 1.2 per cent to 7.5 per cent for FY23/24. However, traders were cautious to take positions as the RBI appointed MPC (Monetary Policy Committee) begin their 3-day meet to discuss policy measures. Weak cues from the global markets also weighed the domestic sentiments.  

On the global front, Asian markets were trading in red following negative cues from the US markets overnight as strong US economic data sent Treasury yields higher and renewed concerns over the outlook for interest rates. Back home, on the BSE sectoral front, traders were seen pilling up position IT, TECK, Utilities, Oil & Gas and Metal, while selling was witnessed in Realty, FMCG, Auto, Healthcare and Bankex. 

The BSE Sensex is currently trading at 73937.28, up by 33.37 points or 0.05% after trading in a range of 73540.27 and 73971.18. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index up by 1.02%.

The top gaining sectoral indices on the BSE were IT up by 1.28%, TECK up by 1.07%, Utilities up by 0.67%, Oil & Gas up by 0.61% and Metal up by 0.52%, while Realty down by 1.25%, FMCG down by 0.37%, Auto down by 0.36%, Healthcare down by 0.19% and Bankex down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.97%, Tech Mahindra up by 1.73%, HCL up by 1.17%, Wipro up by 1.01% and HDFC Bank up by 0.80%. On the flip side, Nestle down by 2.83%, Bajaj Finserv down by 1.13%, Kotak Mahindra Bank down by 0.95%, Indusind Bank down by 0.93% and JSW Steel down by 0.85% were the top losers.

Meanwhile, the government has broadly met the tax collection target of over Rs 34.37 trillion for fiscal year 2023-24 (FY24) on the back of robust economic activity and improved compliance. In the revised estimates (RE) presented in Parliament on February 1, 2024, the government had raised the target for direct tax collection in FY24 to Rs 19.45 trillion, while for indirect taxes (GST+ Customs + Excise) the target was lowered to Rs 14.84 trillion.

The net direct tax collections (comprising corporate tax and personal income tax) reached over Rs 18.90 trillion as of March 17, 2024. Goods and services tax (GST) remained a high point during the last fiscal (FY24) with collections reaching a record high of Rs 1.87 trillion in April 2023 and the second highest collection coming in at Rs 1.78 trillion in March 2024. The gross tax collection target as per the revised estimate stood at Rs 34.37 trillion for FY24. Tax collection is a reflection of economic activity.

India is recording world-beating growth rate and is projected to grow at 7.6 per cent in 2023-24, as per NSO estimates. Domestic consumption and government capex are the main drivers of the country's economic momentum. India grew above 8 per cent for three consecutive quarters (April-December) and various agencies have revised the growth estimates of India for FY24 closer to 8 per cent.  

The CNX Nifty is currently trading at 22457.10, up by 3.80 points or 0.02% after trading in a range of 22346.50 and 22466.65. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were TCS up by 1.95%, Tech Mahindra up by 1.72%, Hindalco up by 1.37%, HCL up by 1.29% and Shriram Finance up by 1.20%. On the flip side, Nestle down by 2.88%, Bajaj Auto down by 1.53%, HDFC Life Insurance down by 1.35%, Britannia down by 1.31% and Bajaj Finserv down by 1.25% were the top losers.

All Asian markets were trading lower; Hang Seng declined 147.5 points or 0.87% to 16,784.02, Nikkei 225 slipped 368.24 points or 0.92% to 39,470.67, Taiwan Weighted lost 80.13 points or 0.39% to 20,386.44, Straits Times fell 19.44 points or 0.6% to 3,228.28, KOSPI dropped 40.61 points or 1.48% to 2,712.55, Shanghai Composite weakened 3.7 points or 0.12% to 3,071.26 and Jakarta Composite plunged 54.11 points or 0.75% to 7,182.87.