CBDT chair sees monthly GST collection jumping 7% on average: Daily Market Update - 10 April 2024 | Globe Capital Market LTD.
10-Apr-2024
CBDT chair sees monthly GST collection jumping 7% on average: Daily Market Update – 10 April 2024

India’s monthly goods and services tax collection is expected to expand at more than 7% on average in the new fiscal year on robust economic growth and more people paying taxes for what they consume, a top official from the Finance Ministry said. Revenue from the consumption tax is expected to clock in at over 1.80 trillion rupees ($21.6 billion) on an average monthly basis from the fiscal year starting April, according to Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes and Customs. The collection averaged 1.68 trillion rupees a month in the last fiscal year and 1.51 trillion in 2022-23.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat note.
  • European equity markets settled in red, down 0.11% to 1.34%.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is trading up by 70 points, Nifty futures is likely to open around 22850 levels (as on 8:30AM).

 

News highlights from across the globe

  • Majority of Asian equity markets are trading higher as traders await the release of US CPI data for March. The inflation print will give fresh cues about the Federal Reserve’s rate outlook moving ahead.
  • Wall Street traders making their final bets on Wednesday’s key inflation report sent stocks lower as bonds rebounded after a recent slide, Bloomberg said.
  • Brent crude was trading 0.01% higher at $89.43 a barrel.

 

Important news updates from the domestic front

  • One 97 Communications: Surinder Chawla, MD and CEO of Paytm Payments Bank, has resigned effective June 26.
  • Lupin launched first generic version of Oracea in the U.S.
  • Avenue Supermarts opened a new store in Bengaluru. The total number of stores as on date stands at 366.
  • Shyam Metalics announced the establishment of a new stainless-steel hot rolled coils facility at its existing plant in Odisha.
  • Rattan India Power: Manish Ratnakar Chitnis has been appointed as CFO after Ankur Mitra resigned.
  • ICICI Prudential received GST order worth of Rs 20.5 crore from Gujarat tax authorities for FY19.
  • Exide Industries to acquired 26% stake in Clean Max Arcadia for Rs 5.3 crore.
  • PB Fintech incorporated a wholly owned subsidiary PB Pay Pvt.
  • Welspun Living NCLT has approved the scheme of amalgamation of 5 wholly owned subsidiaries with company.

 

Nifty Overview & Outlook

Benchmark Nifty index ended on a flat to negative note at 22643 levels after hitting new all-time highs i.e. 22768.40 levels.

Performance on the broader front was mix as Small Cap Index ended on a flat to positive note while Midcap index performed in line with the benchmark, ended on a flat to negative note; resultant, poor market breadth.

Situation was no different on the sectoral front. Amongst them, Nifty Metal index was at the top of the tally, rose over 1%. On the other hand, Nifty Consumer Durables, FMCG, Media and PSU Bank index settled lower in range 0.5% to 1%.

Technically, Nifty Index is well placed on multiple chart frames. However, possibility of some profit taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 22300 levels on closing basis and expect it to test 22850 and higher levels in near term. Hence, we suggest traders to maintain buy on dips trading strategy till it is trading above the said levels.

 

Derivatives Overview & Outlook

Yesterday, no significant change was seen in Nifty, Banknifty and Finnifty futures on price front, whereas on open interest front, Nifty futures open interest increased by 8.9%, Banknifty and Finnifty open interest decreased by 0.3% and 2.8% respectively.

On the sectoral front, fresh long buildup was observed in Metals and Power shares. Fresh short was observed in FMCG, Media, Automobile  and Cement stocks and some long unwinding was seen in Chemical stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 22500 PE and 23000 CE closely followed by 22800 CE.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 593 Cr in the cash segment, bought stocks futures and index futures worth Rs 1022 Cr and Rs 2485 Cr respectively. DIIs were net buyers in cash segment worth Rs 2257 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22850-22920; Supports 22625-22570

Banknifty – Resistances 49100-49350; Supports 48570-48300

Finnifty – Resistances 21800-21860; Supports 21610-21550

 

F&O Securities in Ban Today  – BANDHANBK, EXIDEIND, HINDCOPPER,INDIACEM,SAIL, ZEEL.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.