Benchmarks end higher in volatile session on Thursday

Indian equity benchmarks ended higher in the volatile session on Thursday, propped up by buying in IT, consumer durables and Utilities stocks amid expectations of a robust corporate performance. Markets made a positive start as traders took support with CBIC chairman Sanjay Kumar Agarwal’s statement 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. Tax collection is a reflection of economic activity. However, markets soon erased gains and witnessed selling pressure during the first half of the trading session as traders turned cautious with provisional data from the NSE showing that foreign institutional investors (FIIs) net sold shares worth Rs 2,213.56 crore on April 3, 2024. 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.

However, markets rebounded sharply during the second half to settle higher, as traders took encouragement with data showing that India's services activity continued to expand in March, with the HSBC Purchasing Managers' Index (PMI) for the sector coming in at 61.2. Rising from 60.6 in February to 61.2 in March, the seasonally adjusted HSBC India Services Business Activity Index pointed to one of the strongest growth rates seen in over 13-and-a-half years. The upturn was largely attributed to healthy demand conditions, efficiency gains and positive sales developments. Some solace also came as Sebi Chairperson Madhabi Puri Buch said that Indian capital markets are commanding high valuations as foreign investors are bullish about the country's economic growth on the back of strong domestic macroeconomic data. Investors also eyed the RBI meeting outcome slated for Friday. 

On the global front, European markets were trading higher after revised data showed economic activity in the eurozone's private sector expanded for the first time in ten months in March. The eurozone services PMI improved to 51.5 from 50.2 in February. Asian markets settled higher on Thursday, after Federal Reserve Chair Jerome Powell reaffirmed his view that U.S. rates will be cut this year, but not anytime soon.

Finally, the BSE Sensex rose 350.81 points or 0.47% to 74,227.63 and the CNX Nifty was up by 80.00 points or 0.36% to 22,514.65. 

The BSE Sensex touched high and low of 74,501.73 and 73,485.12 respectively. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index fell 0.11%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were IT up by 0.93%, Consumer Durables up by 0.85%, Utilities up by 0.78%, Consumer Discretionary up by 0.68% and Bankex up by 0.57%, while Oil & Gas down by 1.64%, Energy down by 1.01%, PSU down by 0.75%, FMCG down by 0.34% and Realty down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 3.06%, Titan Company up by 1.98%, Tech Mahindra up by 1.74%, Asian Paints up by 1.72% and TCS up by 1.41%. On the flip side, SBI down by 1.52%, Bharti Airtel down by 1.44%, JSW Steel down by 1.01%, Power Grid Corporation down by 0.96% and ITC down by 0.60% 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 traded in a range of 22,619.00 and 22,303.80. There were 31 stocks advancing against 19 stocks declining on the index. 

The top gainers on Nifty were HDFC Bank up by 3.15%, Titan Company up by 1.95%, Tech Mahindra up by 1.83%, Eicher Motors up by 1.80% and Asian Paints up by 1.80%. On the flip side, ONGC down by 2.12%, Adani Ports & SEZ down by 2.00%, Shriram Finance down by 1.80%, BPCL down by 1.72% and Bharti Airtel down by 1.48% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 33.19 points or 0.42% to 7,970.63, France’s CAC rose 6.48 points or 0.08% to 8,159.71 and Germany’s DAX gained 25.31 points or 0.14% to 18,393.03.

Asian markets settled higher on Thursday, in thin holiday trade as markets of Hong Kong and China were closed for Ching Ming Festival, while Taiwan market was closed for Children's Day holiday. Seoul shares gained after Federal Reserve Chair Jerome Powell reaffirmed the central bank is on track to cut interest rate cuts this year. Japanese shares rose tracking gains of US tech shares, while the yen weakened broadly following a meeting of the country's leading monetary authorities.