Government hikes Windfall tax on Crude Petroleum: Daily Market Update - 4 April 2024 | Globe Capital Market LTD.
Government hikes Windfall tax on Crude Petroleum: Daily Market Update – 4 April 2024

The government has increased the windfall tax on crude petroleum. The special additional excise duty on crude petroleum has been raised from Rs 4,900 per tonne to Rs 6,800 per tonne, according to a gazette notification issued on Wednesday. The new tax rates will take effect on April 4, it said. The taxes on diesel, petrol and aviation turbine fuel will continue to remain nil.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat note.
  • European equity markets too settled on a flat note.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is trading up by 80 points, Nifty futures is likely to open around 22600 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equity markets are trading in green on Thursday after the Federal Reserve Chair Jerome Powell indicated rate cuts are imminent this year.
  • Powell said the recent strong inflation report did not “materially” change the broader picture offered for risk assets. However, the central bank will adhere to wait and watch mode before pulling down the borrowing cost.


Important news updates from the domestic front

  • Axis Bank: The Competition Commission has approved the proposed infusion of Rs 1,612 crore by the company in Max Life Insurance.
  • KEC International secured orders worth Rs 816 crore across various businesses.
  • Brigade Enterprises signed a joint development agreement with United Oxygen to develop a ‘Grade A’ office space with a leasable area of 3.0 lakh square feet and the project has a gross development value of around Rs 340 crore.
  • Avenue Supermart’s standalone revenue from operations stood at Rs 12,393.5 crore, up 19.9% YoY for the fourth quarter. The total number of stores was 365 as of March 31.
  • Vodafone Idea: The board will meet on April 6 to consider share issuance proposals of equity and/or convertible shares on a preferential basis.
  • Vedanta: Vedanta Aluminium has expanded its alumina refining capacity to 3.5 million tonne per annum.
  • RBL Bank reported total deposits at Rs 1.03 lakh crore, up 22% YoY as of March 31 and gross advances at Rs 85,640 crore, up 5% YoY.
  • Punjab and Sindh Bank: Arnab Goswamy has been appointed as Chief Financial Officer for a period of 3 years from the date of his joining.
  • Cyient DLM: Ram Dornala ceases to be the chief operating officer of the company effective today.


Nifty Overview & Outlook

Benchmark Nifty index ended on a flat to negative note at 22434 levels after a cut of 18 points from its previous closing values.

Broader markets outperformed the benchmark as Small cap index up over 1% while Midcap index ended on flat to positive note against negative closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty PSU Bank index was the top gainer, rose 1.78% followed by Nifty IT and Media index that were up, 0.73% and 0.57% respectively. On the other hand, Nifty Realty index led the decline, down over 2.5%.

Technically, Nifty index is well placed on multiple time frames. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 22000 levels on closing basis. Crossover and sustenance above 22550 spot will be a positive development that might take it towards 22800 and higher levels.


Derivatives Overview & Outlook

Yesterday, no meaningful activity was seen in Nifty, Banknifty and Finnifty futures on price front, whereas on open interest front, all three added around 1%, 4% and 11% of open interest respectively.

On the sectoral front, long buildup was seen among Banking, Power and Chemical stocks whereas some short buildup was seen among Realty, FMCG and Auto stocks.

On the options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 22000 PE and 22500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2214 Cr in the cash segment, sold stocks futures and Index futures worth Rs 10315 Cr and 1677 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 1102 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22590-22650; Supports 22270-22200

Banknifty – Resistances 47800-48100; Supports 47300-47000

Finnifty – Resistances 21250-21300; Supports 21020-20950


F&O Securities in Ban Today  – HINDCOPPER, SAIL, ZEEL


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