Government cuts windfall tax on crude oil : Daily Market Update Equity 16 Jan 2024 | Globe Capital Market LTD.
Government cuts windfall tax on crude oil : Daily Market Update Equity 16 Jan 2024

India has slashed the windfall tax on crude oil. The windfall tax has been reduced from Rs 2,300 per tonne to Rs 1,700 per tonne, according to a gazette notification issued on Monday. The export tax on petrol, diesel and aviation turbine fuel remains nil. The new tax rates will take effect on Jan 16, it said. India first imposed windfall profit taxes on July 1 last year joining a growing number of nations that tax the supernormal profits of energy companies.

Overview and Outlook

Global Stock Market Today

  • US equity markets were close yesterday.
  • European equity markets ended lower in range 0.4% to 0.72%
  • Majority of Asian equity markets are trading in red.
  • GIFT Nifty is down by 50 points, Nifty futures are likely to open around 22100 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading lower on Tuesday, amid a lack of overnight cues from U.S. markets due to the holiday.
  • Japan reported its corporate goods price index remained unchanged in December on an annualized basis, compared to a decline expected by market participants.
  • China will be on focus for its GDP number, scheduled for release on Wednesday. The economy is expected to grow at 5.3% annual rate, compared to 4.9% pace recorded in the preceding quarter.


Important news updates from the domestic front

  • Bank of Baroda will issue long-term infrastructure bonds worth Rs 5,000 crore in the second tranche.
  • Nalco: India’s Khanij Bidesh India and Argentina’s Catamarca Minera Y Energetica Sociedad DEL ESTADO signed an agreement for the first-ever exploration and mining of lithium. The estimated project cost is Rs 200 crore.
  • PNC Infratech with its arm, executed definitive agreements with Highways Infrastructure Trust to divest 12 of the company’s road assets and one toll concession in the states of Uttar Pradesh, Madhya Pradesh, Karnataka, and Rajasthan. The enterprise value of the transaction is Rs 9,005.7 crore.
  • Patanjali Foods in its Q3 business update, reported that the food and FMCG segments accounted for 32% of total revenues, edible oils’ sequential volume growth was seen in single digits and branded sales continued to contribute 75% of the total edible oil sales volume.
  • BLS International Services through its arm, signed a definitive agreement to acquire a 100% stake in iDATA, a Turkey-based visa and consular services provider, to expand the existing business in new geographies and with new client governments.
  • Life Insurance Corp has temporarily closed its Mauritius branch due to ongoing Cyclone Belal in Mauritius.
  • Rail Vikas Nigam emerged as the lowest bidder for supply, installation, testing and commissioning of 11 KV Line-associated works. The consideration for the order is Rs 251 crore.
  • Trident appointed Deepak Singhal as chief executive officer for the paper, energy and chemicals business.
  • InterGlobe Aviation’s local passenger market share stood at 61.8% vs. 61.8% in November.


Nifty Overview & Outlook

The benchmark Nifty index settled yet another session at new record highs i.e. 22097 levels after adding over 200 points to its previous closing values.

Mid cap index traded in line with benchmark, up nearly 1%, whereas Small-cap index underperformed the benchmark, ended with a gains of 0.42% against 0.93% gains in the benchmark.

All the sectoral indices, barring Media and Metal, tracked at NSE settled in green. Amongst them, Nifty IT and Oil & Gas index gained maximum, up over 1.5% followed by Nifty Bank, PSU Bank and Pharma index that were up by 1% each.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21440 levels on closing basis and expect it to test 22250 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, all F&O indices witnessed addition of long positions. Amongst them, Nifty added around 5% of open interest, Finnifty added around 3.5% of open interest followed by Banknifty and Midcap Nifty that added around 1% of open interest each as long buildup.

Majority of F&O sectors settled higher. Amongst them, IT, Telecom and Oil & Gas index witnessed maximum addition of long positions. On the other hand, some short covering was seen among Capital Goods and Realty stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 22000 PE and 22500 CE closely followed by 22300 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1086 Cr in the cash segment, bought stocks futures worth Rs 135 Cr and also bought index futures worth Rs 1446 Cr. DIIs were net sellers in the cash segment to the tune of Rs 821 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22200-22265; Supports 21990-21900

Banknifty – Resistances 48625-48800; Supports 48000-48650

Finnifty – Resistances 21640-21740; Supports 21460-21370






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