Indian equity benchmark -- Nifty -- ended Tuesday's trading session on a higher note, supported by buying in Banking and Auto sectors’ stocks. Index made a positive start and extended its gains to touch day’s high point, as investors reacted positively to data showing that India’s retail inflation, based on the Consumer Price Index (CPI), for December stood at 5.22 per cent, slightly lower than 5.48 per cent in November, data released by the Ministry of Statistics & Programme Implementation showed on Monday. In October, CPI inflation had reached a 14-month high of 6.21 per cent and it stood at 5.69 per cent in December 2023. Some support also came as Fitch Ratings in its January update of the 'India Corporates Credit Trends' report stated that India's steady GDP growth outlook, improved banking sector's financial health and expected interest-rate cuts in 2025 will support credit access for corporates in FY26.
In afternoon session, index came off from day’s high, but remained in green till the end of the session, as sentiments remained optimistic with the government data showing that the net direct tax collection grew 15.88 per cent to about Rs 16.90 lakh crore so far in the current fiscal year (between April 1, 2024, and January 12, 2025). As per the data by the Central Board of Direct Taxes (CBDT), mop-up from net non-corporate taxes, which include mainly personal income tax, stood at over Rs 8.74 lakh crore.
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