Post Session: Quick Review

Indian equity markets ended Tuesday’s session deep in red, with Nifty and Sensex settling below the psychological 23,900 and 78,700 levels, respectively.  In first half of the session, markets traded near neutral lines, while in second half markets witnessed sharp selloff ahead of India’s inflation data later in a day. Globally, traders were concerned over US President-elect Donald Trump's potential aggressive trade policies. The broader indices, the BSE Mid cap index and Small cap index ended with cut of about a percent.

Indices made positive start following the broadly positive cues from Wall Street overnight. Traders took support as Union Minister Hardeep Singh Puri highlighted that India is moving towards a gas-based economy from the imported crude-based economy for its energy requirements. However, soon markets turned volatile as a private report stated that consumer price inflation in India is expected to have risen to 5.81 per cent in October - a 14-month high - due to a surge in vegetable and edible oil prices. Investors overlooked report that with an aim to further enhance the ease of doing business in India, the Reserve Bank of India (RBI) has relaxed norms by finalizing an operational framework for reclassification of Foreign Portfolio Investment made by foreign portfolio investors (FPIs) to Foreign Direct Investment (FDI) under Foreign Exchange Management (Non-debt Instruments) Rules, 2019, when they exceed the 10% ownership limit in an Indian company. In late afternoon deals, markets came under heavy selling pressure as investors sold out their riskier stocks. Traders overlooked the Union Minister of Commerce and Industry Piyush Goyal’s statement that a $2 trillion export can only be achieved by collective efforts of all stakeholders. He emphasized that this goal requires a strategic and collaborative effort, building on the momentum of India’s expected $800 billion in exports this year.

On the global front, European markets were trading lower as investors fret about China's economic recovery and wait for policy hints from the Trump administration. Asian markets ended mostly in red with Chinese and Hong Kong markets leading losses, as investors await U.S. President-elect Trump's stance on the economy, immigration, foreign policy and more. Back home, 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.

The BSE Sensex ended at 78,675.18, down by 820.97 points or 1.03% after trading in a range of 78,547.84 and 79,820.98. There were 3 stocks advancing against 27 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.98%, while Small cap index down by 1.26%. (Provisional)

The only gaining sectoral indices on the BSE were Realty up by 0.14%, while Power down by 2.79%, PSU down by 2.26%, Utilities down by 2.20%, Capital Goods down by 2.14% and Auto was down by 1.95% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Sun Pharma up by 0.28%, Infosys up by 0.06% and ICICI Bank up by 0.04%. On the flip side, NTPC down by 3.06%, Asian Paints down by 2.79%, HDFC Bank down by 2.75%, SBI down by 2.57% and Tata Motors down by 2.44% were the top losers. (Provisional)

Meanwhile, 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 ended at 23,883.45, down by 257.85 points or 1.07% after trading in a range of 23,839.15 and 24,242.00. There were 7 stocks advancing against 43 stocks declining on the index. (Provisional)

The top gainers on Nifty were Trent up by 0.74%, Infosys up by 0.47%, Sun Pharma up by 0.35%, HCL Tech. up by 0.30% and Reliance Industries up by 0.12%. On the flip side, Britannia down by 7.49%, Bharat Electronics down by 3.20%, NTPC down by 3.12%, HDFC Bank down by 2.72% and Asian Paints down by 2.68% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 68.91 points or 0.86% to 8,056.28, France’s CAC fell 72.23 points or 0.98% to 7,354.65 and Germany’s DAX was down by 112.32 points or 0.58% to 19,336.28.

Asian markets settled mostly down on Tuesday as investors were cautiously awaiting US President-elect Donald Trump's stance on the economy, immigration, foreign policy and more. Meanwhile investors were awaiting key US inflation reading later in the week for directional cues. Chinese and Hong Kong shares declined as stimulus efforts in China failed to meet expectations. Meanwhile, Chinese yuan slumped after private report said that Trump is likely to appoint two men with track records of harshly criticizing China for key positions in his new administration, a sign ties between the superpowers may deteriorate further in coming years. Japanese shares declined, even a day after Japanese PM Shigeru Ishiba pledged more than $65 billion of support for the nation's semiconductor and artificial intelligence sector over the next decade.