Domestic indices trim opening gains to trade tad higher in early deals

Indian equity benchmarks made optimistic start on Tuesday following the broadly positive cues from Wall Street overnight coupled with fall in crude oil prices. Oil prices fell on Monday after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s second-biggest oil consumer and as the U.S. dollar edged higher. But soon markets trim some of their gains and are trading slightly higher in early deals amid buying in Realty and Telecom counters. Sentiments got boost as net direct tax collection grew 15.41 per cent to Rs 12.11 lakh crore between April 1 and November 10. However, sustained foreign fund outflows kept upside in check. Foreign institutional investors (FIIs) offloaded shares of Rs 2,307 crore, on November 11. 

On the global front, Asian markets are trading mostly lower as the markets are nervous as they seek clarity on U.S. President-elect Donald Trump's policy proposals, including increased tariffs, and await key U.S. inflation reading later in the week for directional cues. Though the markets are optimistic that Trump's policies such as tax reductions and deregulation will help boost corporate earnings, they see an uptick in inflation amid proposed increase in tariffs that will complicate the US Fed's interest-rate plans.

Back home, telecom stocks are in focus with report that telecom sector regulator Trai is likely to finalise its recommendation on proposed rules related to spectrum allocation for satellite communications by December 15. In stock specific development, Britannia Industries traded under pressure after it reported a 9 percent fall in Q2 consolidated net profit.

The BSE Sensex is currently trading at 79518.99, up by 22.84 points or 0.03% after trading in a range of 79461.47 and 79820.98. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.48%.

The top gaining sectoral indices on the BSE were Realty up by 1.38%, Telecom up by 1.12%, Healthcare up by 0.85%, TECK up by 0.46% and Consumer Durables up by 0.43%, while Capital Goods down by 0.26%, FMCG down by 0.19%, Auto down by 0.15%, Power down by 0.07% and PSU down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.17%, Sun Pharma up by 1.15%, ICICI Bank up by 1.05%, Tata Steel up by 0.83% and Axis Bank up by 0.62%. On the flip side, HDFC Bank down by 1.10%, Maruti Suzuki down by 0.99%, Asian Paints down by 0.96%, Indusind Bank down by 0.77% and Kotak Mahindra Bank down by 0.69% were the top losers.

Meanwhile, the government data has showed that net direct tax collection grew 15.41 per cent to Rs 12.11 lakh crore between April 1 and November 10. This includes net corporate tax of Rs 5.10 lakh crore and non-corporate taxes (including taxes paid by individuals, HUFs, firms) of Rs 6.62 lakh crore. Other taxes (which include Equalisation Levy and gift tax) worth Rs 35,923 crore were mopped up.

As per the Central Board of Direct Taxes (CBDT) data, the gross collection of direct tax stood at Rs 15.02 lakh crore, up 21.20 per cent, during April-November 10. Refunds worth Rs 2.92 lakh crore was issued during the period, a 53 per cent jump over year-ago period.

After adjusting for refunds, net direct tax collection (which include corporate, non-corporate and other taxes) stood at about Rs 12.11 lakh crore, a 15.41 per cent growth over Rs 10.49 lakh crore mopped up in the same period last fiscal. The government has budgeted to collect Rs 22.12 lakh crore in the current fiscal from direct taxes (personal income tax, corporate tax and other taxes), up 13 per cent over previous fiscal.

The CNX Nifty is currently trading at 24153.90, up by 12.60 points or 0.05% after trading in a range of 24132.90 and 24242.00. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Trent up by 1.84%, Sun Pharma up by 1.23%, Bharti Airtel up by 1.19%, ICICI Bank up by 1.11% and Hindalco up by 0.77%. On the flip side, Britannia Industries down by 1.31%, Asian Paints down by 1.01%, HDFC Bank down by 1.01%, Bharat Electronics down by 0.92% and Indusind Bank down by 0.77% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 382.18 points or 1.62% to 23,147.46, Hang Seng declined 335.77 points or 1.64% to 20,091.16, Nikkei 225 slipped 174.29 points or 0.44% to 39,359.03, KOSPI dropped 28.57 points or 1.13% to 2,503.09, Straits Times fell 27.38 points or 0.73% to 3,712.09 and Shanghai Composite weakened 2.15 points or 0.06% to 3,467.92, while Jakarta Composite gained 44.67 points or 0.61% to 7,311.13.