Net direct tax collections for FY24 jumps nearly 21% to Rs 13.70 lakh crore : Daily Market Update Equity 19 Dec 2023 | Globe Capital Market LTD.
Net direct tax collections for FY24 jumps nearly 21% to Rs 13.70 lakh crore : Daily Market Update Equity 19 Dec 2023

India's net direct tax collections from April 1 to December 17 (FY23-24) rose 20.7 percent Y-o-Y to Rs 13.70 lakh crore, according to provisional data shared by the Ministry of Finance. Within overall direct tax collections, corporate tax mop-up amounted to Rs 6.95 lakh crore, while personal income tax and securities transaction tax together came in at Rs 6.73 lakh crore. Before adjusting for refunds, gross direct tax collections for April 1-December 17 stood at Rs 15.96 lakh crore, up 17 percent on-year. Of this, gross corporate tax collections during the same period stood at Rs 7.90 lakh crore, while gross personal income tax and securities transaction tax stood at Rs 8.03 lakh crore, the ministry said on December 18

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.023% to 0.61%
  • Barring FTSE, other European equity markets settled on a negative note.
  • Asian equity markets are a trading mix.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21485 levels (as on 8:30AM)


News highlights from across the globe

  • Most indices in Asia are trading higher tracking gains in Wall Street. Investors in Japan await the outcome of Japan central bank’s two-day meeting.
  • U.S. stocks kicked off the week on a positive note buoyed by a burst of deals, even as Federal Reserve officials sought to sow doubts that aggressive interest rate cuts would materialise early next year
  • Brent crude was trading 1.83% higher at $77.95 a barrel.


Important news updates from the domestic front

  • HDFC Bank raised Rs 7,425 crore through its maiden 10-year infrastructure bond issue on Monday, at a coupon rate of 7.71%, according to market participants with knowledge of the matter.
  • Vedanta approved a second interim dividend of Rs 11 per share, amounting to Rs 4,089 crore. The record date for the payment of dividends is Dec. 27.
  • Apollo Tyres: An affiliate of Warburg Pincus is seeking about $100 million through a 3% stake sale, according to Bloomberg News. The floor price is set at Rs 440 apiece.
  • Sun Pharmaceutical Industries will acquire a 16.7% stake in Massachusetts-based Lyndra Therapeutics for $30 million.
  • Nestle India has set Jan. 5 as the record date for determining shareholders’ entitlement for stock splits. It had approved a share split in the ratio of 1:10 on Oct. 19.
  • IDFC First Bank received the RBI nod for the merger of IDFC and IDFC Financial Holding Co. with itself.
  • KPI Green opened its QIP for raising up to Rs 300 crore and set the floor price at Rs 1,245 per share, which indicates a discount of 9.64% to the stock’s previous close of Rs 1,377.85 on NSE.


Nifty Overview & Outlook

Nifty index settled on a flat to negative note after a lackluster trading session, closed shop at 21418 levels after cut of 38 points from its previous closing values.

The broader markets outperformed the benchmark as Small cap index rose 0.56% while Midcap index ended on a flat note against the negative closing of the frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Media index was at the top of the tally, rose over 1% followed by Consumer Durables, Healthcare and Pharma index that were up in range 0.5% to 1%.   On the other hand, Banking & Financial stocks along with Realty stocks led the decline down over 0.5% each.

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 with a cautious stance on Nifty index till it is trading above 21200 levels on closing basis and expect it to test 21800 and higher levels in near term.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty, Banknifty and Finnifty futures with decrease in open interest by 6.1%, 2.8% and 4.7% respectively.

On the sectoral front, long buildup was seen among Pharma, Infrastructure, Chemicals and Capital Goods stocks whereas some short buildup was seen in Banking, Finance and Realty stocks and some long unwinding was seen in Technology and Cement stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 21300 PE and 21500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 34 Cr in the cash segment, sold stocks futures worth Rs. 1895 Cr and bought index futures worth Rs.16 Cr. DIIs were net buyer in the cash segment to the tune of Rs 414 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21640-21740; Supports 21300-21170

Banknifty – Resistances 48380-48740; Supports 47350-46900

Finnifty – Resistances 21620-21740; Supports 21200-20950




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