Indian equity benchmark -- Nifty -- ended Tuesday’s trading session near day’s high point as traders went for fundamentally strong stocks. After making a decent start, soon index extended its gains, as traders took encouragement with Economic Affairs Secretary Ajay Seth’s statement that second quarter GDP growth at 5.4 per cent is lower than the potential but exuded confidence that the second half to be better. He added several high-frequency indicators in the month of October are pointing towards that. Traders overlooked a private report that the recent decline in corporate earnings is likely to cast a shadow on the government’s direct-tax receipts and its fiscal position. Tax payment by listed companies was down 7 per cent year-on-year (Y-o-Y) in Q2FY25, their worst showing in the last four years and the first decline in corporate tax in seven quarters.
In afternoon session, index added gains to trade near day’s high point and remained higher till end of the day, as some support came with the rating agency ICRA stating that it expects sequential revenue growth for India Inc in the December quarter, led by improved rural demand and uptick in government spending, additionally supported by the festival season. Sentiments remained optimistic, as India scrapped the 30-month old windfall profit tax on domestically-produced crude oil and on export of jet fuel (ATF), diesel and petrol following a decline in international oil prices.
