Sensex, Nifty trade flat with volatility despite sharp fall in CPI inflation

Indian equity benchmarks started Tuesday’s trading session slightly in red tracking mixed cues global markets. Soon, Sensex and Nifty turned volatile and are trading flat in early deals as investors are struggling for direction amid mixed macro-economic data. The government data showed that the index of industrial production (IIP) declined to a three-month low of 4.2 per cent in June from the upward revised figure of 6.2 per cent in the preceding month. On the other hand, India’s retail inflation rate, based on the consumer price index (CPI), in July fell below the RBI’s medium-term target of 4 per cent for the first time since August 2019 on the back of a high base and sharp reduction in food prices. CPI decelerated to 3.54 per cent in July as against 5.08 in the preceding month and 7.44 per cent during the same month a year ago.

On the global front, Asian markets are trading mixed, following the mixed cues from Wall Street overnight, as traders seemed reluctant to make significant moves ahead of the release of key US inflation reports later in the day and tomorrow, with the data likely to impact the outlook for interest rates. Back home, pharma stocks are in focus as ratings agency ICRA projected that the revenue of its sample set of Indian active pharmaceutical ingredients (API) producing firms is set to grow at a compound annual growth rate (CAGR) of 7 to 8 per cent by 2029. In stock specific development, Inox Wind surged after it bags 51 MW order from Everrenew.

The BSE Sensex is currently trading at 79676.86, up by 27.94 points or 0.04% after trading in a range of 79466.79 and 79692.55. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.13%, while Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.70%, Capital Goods up by 0.63%, Power up by 0.59%, Industrials up by 0.58% and Utilities up by 0.50%, while Basic Materials down by 0.17%, Realty down by 0.14% and Oil & Gas down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 1.04%, Axis Bank up by 0.91%, ICICI Bank up by 0.86%, TCS up by 0.78% and Larsen & Toubro up by 0.77%. On the flip side, HDFC Bank down by 2.25%, Tata Motors down by 0.93%, Asian Paints down by 0.67%, Hindustan Unilever down by 0.35% and Bajaj Finance down by 0.16% were the top losers.

Meanwhile, the government in its latest data has said that net direct tax collection grew 22.48 per cent to about Rs 6.93 lakh crore as of August 11 this fiscal. The mop-up includes personal income tax collection of Rs 4.47 lakh crore and corporate tax collection of Rs 2.22 lakh crore. 

Securities Transaction Tax (STT) mopped up Rs 21,599 crore, while other taxes (which include equalisation levy and gift tax) earned Rs 1,617 crore. Refunds worth Rs 1.20 lakh crore were issued between April 1 to August 11, a growth of 33.49 per cent.

Further, on a gross basis, it said direct tax collection grew 24 per cent to Rs 8.13 lakh crore. The collection includes PIT (personal income tax) of Rs 4.82 lakh crore and corporate tax of Rs 3.08 lakh crore. The government has budgeted to collect Rs 22.07 lakh crore in the current fiscal from direct taxes.

The CNX Nifty is currently trading at 24345.25, down by 1.75 points or 0.01% after trading in a range of 24299.40 and 24359.95. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 0.97%, Hero MotoCorp up by 0.92%, HCL Technologies up by 0.89%, ICICI Bank up by 0.87% and Apollo Hospital up by 0.86%. On the flip side, HDFC Bank down by 2.23%, BPCL down by 1.59%, Tata Motors down by 1.13%, HDFC Life Insurance down by 0.83% and Asian Paints down by 0.79% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 937.71 points or 2.68% to 35,962.71, Jakarta Composite gained 47.17 points or 0.65% to 7,344.80, Straits Times rose 27.56 points or 0.85% to 3,262.94 and Hang Seng advanced 17.13 points or 0.1% to 17,128.78. On the other hand, Taiwan Weighted lost 49.64 points or 0.23% to 21,723.62, KOSPI fell 5.68 points or 0.22% to 2,612.62 and Shanghai Composite was down by 2.11 points or 0.07% to 2,856.09.