India hikes windfall tax on petroleum crude to Rs 9,800/ton - Daily Market Update - Equity 01 Nov 2023 | Globe Capital Market LTD.
India hikes windfall tax on petroleum crude to Rs 9,800/ton – Daily Market Update – Equity 01 Nov 2023

India on October 31 hiked windfall tax on petroleum crude to Rs 9,800/ton from Rs 9,050/ton with effect from November 1, according to a government notification. The windfall tax on aviation turbine fuel has been cut to nil from 1 rupee per litre and diesel reduced to Rs 2/litre from Rs 4/litre, the notification added.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on positive note, up in range 0.38% to 0.65%
  • European markets ended on a flat to positive note.
  • Asian equity markets are trading mixed.
  • GIFT Nifty is little changed, Nifty futures likely to open around 19130 levels (as on 8:30AM).


News highlights from across the globe

  • Asian stocks opened mixed after gains on Wall Street weren’t enough to offset a third monthly slide in the S&P 500.
  • The S&P 500 edged lower after the index rebounded in the final day of October, but still notched its worst monthly run since the onset of the pandemic.
  • Brent crude was trading at $87 a barrel and the yield on the 10-year US bond was trading at 4.92%.


Important news updates from the domestic front

  • Lupin received an EIR from the U.S. FDA for the Mandideep Unit-2 manufacturing facility. The inspection closed with the facility receiving the classification ‘No Action Indicated’.
  • Tata Consumers will merge three subsidiaries—NourishCo Beverages, Tata SmartFoodz, and Tata Consumer Soulfull Private—with itself. L. Krishnakumar, the Executive Director and Group CFO, resigned effective the close of business hours on Oct. 31, 2023. Navaneel Kar, President and Head of India Sales, submits his resignation w.e.f. Nov. 17. Current Senior CP of Strategy and M&A Punit Gupta to assume the role of Head of Sales India
  • Oberoi Realty wholly owned subsidiary, Sight Realty, executed a SPA and divested its entire 33% stake in JV Metropark Infratech and Realty Developments for a consideration of Rs 55.19 lakh. The buyer, Dipak Sharma, is an existing shareholder of the JV.
  • SBI Cards: Company and Reliance Retail to roll out Reliance SBI Cards. Cardholders to benefit from Reliance Retail’s presence and large portfolio of brands and SBI Card’s value propositions and offers
  • Bharti Airtel: The Department of Tax imposes a penalty of Rs 1.72 lakh for alleged violations of subscriber verification norms. The board approved the appointment of Douglas Anderson Baille as additional director, w.e.f Oct. 31, for a term of five years.
  • Zee Media: Company to strike off Zee Media Americas LLC, the entity formed by the company to be the wholly owned subsidiary of the company, in the State of Delaware, USA.
  • Zydus Lifesciences: Parties that entered the Sale and Purchase Agreement previously approved by the board have executed the SPA.
  • Mankind Pharma: The board approves a scheme of amalgamation between Shree Jee Laboratory, JPR Labs and Jaspack Industries, wholly owned subsidiaries of the company, with the company and their respective shareholders and creditors, subject to requisite approvals and consents.
  • Ethos approved the floor price for its preliminary placement at Rs. 1,627.49 per equity share. The company may offer a discount of not more than 5% on the floor price, as calculated for the issue.


Nifty Overview & Outlook

The benchmark Nifty index settled lower at 19079 levels after cut of 61 points from its previous closing values.

Performance on the broader front was mix. Mid Cap index outperformed the benchmark as it was up by 0.42% while Small cap index ended on a flat to negative note.

Performance on the sectoral front was no different. Amongst them, Nifty Realty was at the top of the tally, gained 1.27% followed by Nifty Media and Consumer Durable index that rose 0.91% &0.61% respectively. On the other hand, Auto, Pharma and Oil & Gas index led the declines, fell nearly 0.5% each.

Technically, Nifty index formed a bearish red candlestick on a daily chart. Going ahead, we reiterate our negative view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 19300 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty futures with an increase of 1.6% in open interest, Banknifty futures remained almost unchanged on open interest front whereas long unwinding was seen in Finnifty futures with decrease in open interest by over 54%.

On sectoral front, long buildup was seen among Chemicals, FMCG and Technology stocks whereas short buildup was seen among Automobile and Capital Goods stocks. Short covering was seen in Cement stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 19000 PE and 19200 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 696 Cr in the cash segment, bought stocks futures and index futures worth Rs. 562 Cr and Rs 68 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 340 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19285-19410; Supports 18980-18850

Banknifty – Resistances 43590-44000; Supports 42410-42040

Finnifty – Resistances 19390-19510; Supports 18960-18840






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