Direct tax collection reaches 80% of revised financial target, FY24 target at Rs 15.60 lakh crore: Daily Market Update -12 Feb 2024 | Globe Capital Market LTD.
Direct tax collection reaches 80% of revised financial target, FY24 target at Rs 15.60 lakh crore: Daily Market Update -12 Feb 2024

Net direct tax collection so far in current fiscal grew 20% year-on-year to Rs 15.60 lakh crore, which is 80% of revised budget estimates for full fiscal year. "The provisional figures of direct tax collections continue to register steady growth. Direct tax collections up to 10th February, 2024 show that gross collections are at Rs 18.38 lakh crore, which is 17.30% higher than the gross collections for the corresponding period of last year," Central Board of Direct Taxes said in a statement. Direct tax collection, net of refunds, till Feb. 10 of FY24 stands at Rs 15.60 lakh crore, which is 20.25% higher than the net collections in the corresponding period last year.

Overview and Outlook

Global Stock Market Today

  • Barring Dow, other US equity markets settled higher.
  • European equity markets ended on a flat to negative note.
  • Asian equity markets are trading on a mix note.
  • GIFT Nifty is up by 65 points, Nifty futures are likely to open around 21920 levels (as on 8:30AM).


News highlights from across the globe

  • A renewed rally in big tech sent the U.S. stock market towards a milestone amid hopes the Federal Reserve will soon be able to cut rates, bolstering the outlook for corporate profits, Bloomberg reported.
  • Markets in Australia were trading lower on Monday, while investors look forward to the release of U.S. inflation data for month of January.
  • Markets in China, Hong Kong, Taiwan, South Korea, and Vietnam were closed for observance of Lunar Year. Bourses in Japan is also closed on Monday.


Important news updates from the domestic front

  • Hero MotoCorp Q3 FY24 (Standalone, YoY) – Revenue up 21.07% at Rs 9,723.7 crore vs Rs 8,030.98 crore. Ebitda up 47.37% at Rs 1,362.03 crore vs Rs 924.18 crore. Margin expands 249 bps to 14% vs 11.5%. Net profit up 50.94% at Rs 1,073.4 crore vs Rs 711.1 crore.
  • Tata Power Q3 FY24 (Consolidated, YoY) – Revenue up 3.69% at Rs 14,651 crore vs Rs 14,129.12 crore. Ebitda up 3.53% at Rs 2,417.42 crore vs Rs 2,334.78 crore. Margin at 16.5% vs 16.52%, narrows 2 bps. Net profit up 2.27% at Rs 1,076.12 crore vs Rs 1,052.14 crore.
  • ONGC Q3 FY24 (Standalone, QoQ) – Revenue down 1.07% at Rs 34,788 crore vs Rs 35,163 crore. Ebitda down 13.3% at Rs 14,835 crore vs Rs 17,118 crore. Margin contracts 603 bps at 42.6% vs 48.68%. Net profit down 6.7% at Rs 9,535.7 crore vs Rs 10,216.3 crore. Board declares second interim dividend of Rs 4 per share.
  • ONGC board approves appointment of KC Ramesh as Chief Financial Officer with immediate effect. The company will transfer Golfinho-Atum assets of ONGC Videsh Rovuma Ltd. and Beas Rovuma Energy Mozambique Ltd. to Moz AssetCo in lieu of proportionate equity. The estimated value of Golfinho-Atum assets is $1.28 billion.
  • One 97 Communication formed a group advisory committee to work with the company’s board to strengthen compliance and regulatory matters.
  • Vedanta completed repayments to its bondholders on Feb. 7 in line with the consents it received earlier in the year, in which maturities of $3.2 billion in bonds were successfully extended to 2029.
  • Adani Power has clarified that it has submitted a resolution plan for the acquisition of Lanco Amarkantak Power but has still not received any communication from the Resolution Professional.
  • Navin Fluorine: Life Insurance of India increased its stake in the company to 7.07% from 5.03% earlier.
  • Easy Trip Planners: The board approved a proposal for five-star hotel in Ayodhya with investment of up to Rs 100 crore.


Nifty Overview & Outlook

The benchmark Nifty index ended on a flat to positive note at 21782 levels, added 64 points to its previous closing values after a lackluster trading session.

Nifty index outperformed the broader markets as it ended on a positive note while Small cap & Midcap index was down 1.40% and 0.77% respectively.

Performance on the sectoral front was mix. Amongst them, Nifty Bank was at the top of the tally, gained nearly 1.5% followed by PSU Bank, Pharma and FMCG index that ended higher in range 0.5% to 1%. On the other hand, Nifty Metal and Oil & Gas index led the declines, fell 1.5% each.

Technically, Nifty index is trading sideways in a board range of 21200-22120 levels for past couple of weeks. Going ahead,  either side break and sustenance from this range will open the doors for next directional move in that direction.


Derivatives Overview & Outlook

Last Friday, no significant move was observed on price front in Nifty futures whereas open interest decreased by 3.9%. Short covering was seen in Banknifty futures with decrease in open interest by 5.5%, and long build was seen in Finnifty futures with increase in open interest by 0.4%.

On the sectoral front long buildup was observed in Media, Cement and Chemical shares whereas short buildup was seen in Automobile and Finance stocks. Long unwinding was seen in Metals, Oil & Gas and Power stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 21500 PE and 22000 CE


Institutional Trading Activity

Last Week, FIIs sold stocks worth Rs 5871 Cr in the cash segment, sold stocks futures and index future worth Rs 7047 Cr and Rs. 7813 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 5326 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21950-22100; Supports 21670-21550

Banknifty – Resistances 46030-46450; Supports 45300-44900

Finnifty – Resistances 20430-20660; Supports 19980-19780






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