Markets open at all-time highs but trim some gains in early deals

Indian benchmark indices -- Sensex and Nifty -- opened at all-time highs on Thursday powered by gains in heavyweights amid strong global cues. Some support came as CBIC chairman Sanjay Kumar Agarwal said the indirect tax collection for FY24 has exceeded the revised estimates (RE) of Rs 14.84 trillion by “a handsome margin”, helped by a record GST mop-up. Tax collection is a reflection of economic activity. But, soon markets trimmed most of their gains and are trading marginally higher in early deals as investors are cautiously looking ahead to the Services PMI data to be out later in the day, for more directional cues.  Foreign fund outflows also dented sentiments, Foreign institutional investors (FIIs) net sold shares worth Rs 2,213.56 crore on April 3, provisional data from the NSE showed. Some cautiousness came in markets as a private report said that merchandise exports from India for the financial year 2023-24 (FY24) may show a contraction of around 1-1.5 per cent after two consecutive years of growth, even as March is likely to witness robust double-digit growth. 

On the global front, Asian markets are trading higher, following the mostly positive cues from Wall Street overnight, as traders reacted to the latest remarks from US Fed officials that helped ease recent concerns about the outlook for interest rates. Fed Chair Jerome Powell reiterated that the central bank is not in a hurry to begin lowering interest rates, but reaffirmed his view that they will likely cut interest rates this year. China and Hong Kong are closed for the Ching Ming Festival, and Taiwan is also shuttered for Children's Day. Back home, shares of oil explorers such as ONGC, Oil India and Reliance are in focus after the government in its fortnightly review hiked windfall tax on petroleum crude to Rs 6,800 a metric tonne from Rs 4,900 earlier. In stock specific development, index heavyweight HDFC Bank traded with traction after it reported over 100 per cent YoY growth in retail loans in Q4.

The BSE Sensex is currently trading at 74015.88, up by 139.06 points or 0.19% after trading in a range of 73962.87 and 74501.73. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.32%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Utilities up by 1.84%, Power up by 1.56%, PSU up by 0.58%, Bankex up by 0.55% and Metal up by 0.54%, while Auto down by 0.15%, FMCG down by 0.11%, Healthcare down by 0.06%, TECK down by 0.06% and Consumer Durables down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 2.19%, Power Grid up by 2.10%, NTPC up by 1.92%, Tata Steel up by 0.70% and Kotak Mahindra Bank up by 0.49%. On the flip side, Sun Pharma down by 1.14%, Indusind Bank down by 0.97%, Bharti Airtel down by 0.69%, HCL Technologies down by 0.66% and ICICI Bank down by 0.45% were the top losers.

Meanwhile, Central Board of Indirect Taxes and Customs (CBIC) chairman Sanjay Kumar Agarwal has said that the indirect tax collection for FY24 has exceeded the revised estimates (RE) of Rs 14.84 trillion by “a handsome margin”, helped by a record GST mop-up. He said this achievement not only reflects professionalism but also underscores the strength of teamwork and perseverance within the CBIC community, and added that 'your relentless efforts have not gone unnoticed, and I extend my heartfelt appreciation to each and every member for their invaluable contributions throughout the year'.

The CBIC chairman said the gross GST mop up for 2023-24 also marks a milestone with the collection of Rs 20.18 trillion -- comprising state GST, Central GST, integrated GST and compensation cess -- exceeding the previous year's collection by an impressive 11.7 per cent. The RE for central GST, including compensation cess, was Rs 9.57 trillion, while for excise duty it was Rs 3.08 trillion and customs Rs 2.19 trillion.

In the Interim Budget presented in February this year, the government raised the target for direct tax collection in FY24 (April 2023 to March 2024) to Rs 19.45 trillion, while for indirect taxes -- including GST, Customs and Excise -- the target was lowered to Rs 14.84 trillion. The GST remained at a high point during the last fiscal 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. As per NSO estimates, tax collection is a reflection of economic activity. India is recording a world-beating growth rate and is projected to grow at 7.6 per cent in 2023-24. Domestic consumption and government capex are the main drivers of the country's economic momentum.

The CNX Nifty is currently trading at 22471.20, up by 36.55 points or 0.16% after trading in a range of 22446.10 and 22619.00. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.62%, Power Grid up by 2.21%, HDFC Bank up by 2.20%, Hindalco up by 1.18% and Coal India up by 0.92%. On the flip side, Hero MotoCorp down by 1.56%, Indusind Bank down by 1.00%, Shriram Finance down by 0.98%, Sun Pharma down by 0.97% and HCL down by 0.75% were the top losers.

Asian markets are trading in green; Nikkei 225 surged 645.86 points or 1.64% to 40,097.71, Jakarta Composite gained 67.9 points or 0.95% to 7,234.74, KOSPI rose 25.00 points or 0.92% to 2,731.97 and Straits Times was up by 20.91 points or 0.65% to 3,243.57.