Sensex, Nifty end flat amid volatility

Indian equity benchmarks ended flat on Wednesday after hitting new lifetime peaks during the session, on the emergence of profit-taking amid a lack of immediate triggers. Benchmark indices opened at record highs on firm global cues. Sentiments also got boost with the Central Board of Direct Taxes’ (CBDT) statement that net direct tax collection grew 21 per cent to Rs 4.62 lakh crore so far this fiscal on higher advance tax mop-up. The first instalment of advance tax, which was due on June 15, showed collection rose 27.34 per cent to Rs 1.48 lakh crore. This includes Corporation Income Tax (CIT) at Rs 1.14 lakh crore and Personal Income Tax (PIT) at Rs 34,470 crore. Some support also came as exchange data showed Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth Rs 2,569.40 crore. 

However, markets shed their early gains and traded lackluster during the day due to the recent slow progress of monsoon. Traders took a note of the Reserve Bank Governor Shaktikanta Das’ statement that India should avoid adventurism and continue to focus on bringing down inflation towards the target of 4% despite the growing clamour to signal a pivot in monetary policy. He stated ‘At this point there is again clamour that one should change the stance. But we want clear evidence that inflation should moderate and perhaps a little faster. It will be too premature to talk in terms of changing the stance’. But, key gauges regained some traction in late hour of trading session but failed to hold momentum and ended flat as investors now looked forward to the Union Budget that is likely to be presented by Finance Minister Nirmala Sitharaman in July.  Meanwhile, the government has released the 17th instalment of about Rs 20,000 crore under PM-KISAN scheme and distributed certificates to over 30,000 self-help groups known as Krishi Sakhis. After depositing Rs 20,000 crore in the accounts of about 9.25 crore farmers, a total of about Rs 3,25,000 crore has been deposited in the accounts of farmers so far.

On the global front, European markets were trading mostly in red as investors reacted to cautious Fed comments, a weaker-than-expected U.S. retail sales report and signs of escalating tensions in Europe and the Middle East. Asian markets settled mostly higher on Wednesday buoyed by a rally in tech stocks, while the dollar wobbled after soft US retail sales data reinforced expectations of the Federal Reserve cutting rates later this year. 

Finally, the BSE Sensex rose 36.45 points or 0.05% to 77,337.59, and the CNX Nifty was down by 41.90 points or 0.18% points to 23,516.00.   

The BSE Sensex touched high and low of 77,851.63 and 76,954.87 respectively. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.91%, while Small cap index was down by 0.58%.

The few gaining sectoral indices on the BSE were Bankex up by 1.97% and IT up by 0.38%, while Realty down by 2.97%, Consumer Durables down by 2.42%, Capital Goods down by 2.15%, Oil & Gas down by 1.97% and Power down by 1.86% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 3.06%, Axis Bank up by 2.94%, ICICI Bank up by 1.93%, Kotak Mahindra Bank up by 1.67% and Indusind Bank up by 1.48%. On the flip side, Titan Co down by 3.47%, Larsen & Toubro down by 2.66%, Bharti Airtel down by 2.49%, Maruti Suzuki down by 2.43% and NTPC down by 1.99% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) has said that net direct tax collection grew 21 per cent to Rs 4.62 lakh crore during April 1 to June 17, 2024 period, on higher advance tax mop-up. The first instalment of advance tax, which was due on June 15, showed collections rose 27.34 per cent to Rs 1.48 lakh crore. This includes corporate income-tax (CIT) at Rs 1.14 lakh crore and Personal Income Tax (PIT) at Rs 34,470 crore.

CBDT said the net direct tax collection of Rs 4.62 lakh crore includes CIT at Rs 1.81 lakh crore and PIT (including Securities Transaction Tax) at Rs 2.81 lakh crore. Refunds amounting to Rs 53,322 crore have also been issued in the FY 2024-25 till June 17, 34 per cent higher than refunds issued during the same period in the preceding year.

It further said for April-June 17, gross collection of direct taxes (before adjusting for refunds) stood at Rs 5.16 lakh crore compared to Rs 4.23 lakh crore in the corresponding period of the preceding financial year, showing a growth of 22.19 per cent. For full fiscal, the interim budget has pegged direct tax collection at Rs 21.99 lakh crore.  

The CNX Nifty traded in a range of 23,664.00 and 23,412.90. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 3.11%, HDFC Bank up by 3.06%, ICICI Bank up by 1.92%, Indusind Bank up by 1.86% and Kotak Mahindra Bank up by 1.49%. On the flip side, Titan Company down by 3.60%, Maruti Suzuki down by 2.60%, Bharti Airtel down by 2.41%, Bajaj Auto down by 2.40% and BPCL down by 2.32%. 

European markets were trading mostly in red; France’s CAC fell 46.85 points or 0.61% to 7,581.95 and Germany’s DAX lost 44.49 points or 0.25% to 18,087.48, while UK’s FTSE 100 increased 4.47 points or 0.05% to 8,195.76.

Asian markets settled mostly higher on Wednesday tracking Wall Street gains overnight, while a weaker-than-expected US retail sales report reinforced expectations of an early rate cut by the Federal Reserve. However, some gains were limited as commentary from a slew of Fed officials emphasizing the need for more evidence of cooling inflation before lowering rates. Seoul shares gained as technology shares surged on bullish outlook for Artificial Intelligence technology. Japanese shares marginally rose by tracking an overnight rally in US semiconductor shares led by Nvidia. Meanwhile, the minutes of Bank of Japan's April policy meeting showed policymakers debating about the weak yen's impact on inflation, which has remained relatively low compared with other major economies.