Direct tax-to-GDP ratio scales 15-year high of 6.11% in FY23 : Daily Market Update Equity 24 Jan 2024 | Globe Capital Market LTD.
24-Jan-2024
Direct tax-to-GDP ratio scales 15-year high of 6.11% in FY23 : Daily Market Update Equity 24 Jan 2024

India's direct tax-to-GDP ratio hit a 15-year high of 6.11% in 2022-23, hovering near its peak of 6.3% reached in 2007-08, according to data released by the Central Board of Direct Taxes (CBDT). The data, released late on January 23, showed that the contribution of direct taxes – which majorly comprises corporate tax and personal income tax – to total tax collections has reached the pre-pandemic levels. In 2022-23, direct taxes made up 54.62% of the government's total tax revenue, up from 52.27% in 2021-22 and 46.84% in 2020-21 – the lowest in 15 years.

Overview and Outlook

Global Stock Market Today

  • Barring Dow, other US equity markets settled on flat to positive note
  • European equity markets settled on a flat to negative note.
  • Asian markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21260 levels (as on 8:30AM).

 

News highlights from across the globe

  • Japan’s exports rose 9.8% year-on-year in December.
  • Share indices on Wall Street closed at an all-time high after trading in a narrow range ahead of a slew of company results that should offer insights into the state of the global economy.
  • Brent crude was trading 0.51% lower at $79.55 a barrel.

 

Important news updates from the domestic front

  • Axis Bank Q3 FY24 (Standalone, YoY) – NII at Rs 12,532 crore vs Rs 11,459 crore, up 9.4% (YoY). Net profit at Rs 6,071.1 crore vs Rs 5,853.1 crore, up 3.7% (YoY) . Gross NPA at 1.58% vs 1.73% (QoQ). Net NPA at 0.36% vs 0.36% (QoQ).
  • Tata Elxsi Q3 FY24 (Consolidated, QoQ) – Revenue at Rs 914.23 crore vs Rs 881.7 crore, up 3.68%. EBIT at Rs 244.7 crore vs Rs 238.75 crore, up 2.49%. Margin at 26.76% vs 27.07%, down 31 bps. Net profit at Rs 206.43 crore vs Rs 200.22 crore, up 3.1%.
  •  Glenmark Life Sciences Q3 FY24 (Consolidated, YoY) Revenue at Rs 572.8 crore vs Rs 540.7 crore, up 5.9%.  Ebitda at Rs 172.6 crore vs Rs 145.5 crore, up 18.6%.  Margin at 30.13% vs 26.9%.  Net profit at Rs 118.8 crore vs Rs 105 crore, up 13.1%.
  • Pidilite Industries Q3 FY24 (Consolidated, YoY) Revenue at Rs 3,130 crore vs Rs 2,997.6 crore, up 4.4%.  Ebitda at Rs 742.5 crore vs Rs 495.9 crore, up 49.7%.  Margin at 23.72% vs 16.54%.  Net profit at Rs 510.9 crore vs Rs 307.7 crore, up 66%.
  • AU Small Finance Bank: The CCI gave the nod for the proposed amalgamation of Fincare SFB into itself. Amalgamation remains subject to receipt of RBI approval.
  • Lupin received tentative approval from the USFDA for its abbreviated new drug application for Rivaroxaban Tablets.
  • Rallis India approved a proposal for a capacity addition of 2000 MT per annum of the existing Pendimethalin Plant at Dahej SEZ unit which is expected to be completed in a phased manner by FY25.
  • Bharti Airtel prepaid Rs 8,325 crore to the Department of Telecom towards part prepayment of the deferred liabilities of spectrum acquired in the auction of the year 2015.
  • KEI Industries approved the voluntary liquidation of unit KEI Cables Australia.
  • Oberoi Realty achieved gross bookings of Rs 882 crore during the launch of its new tower in Elysian at Oberoi Garden City, Mumbai.

 

Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on the higher side but failed to sustain at higher levels and settled sharply lower at 21239 levels after a cut of nearly 350 points from its previous closing values.

Broader markets underperformed the frontline index as Small cap and Midcap indices were down 3% each against 1.54% decline of frontline index; resultant, poor market breadth.

All the sectoral indices, barring Pharma and Healthcare, tracked at NSE settled in red. Amongst them, Nifty Media index tumbled nearly 13% followed by Nifty Realty, Oil & Gas, PSU Bank and Metal index that were down in range 3.5% to 5.5%.

Nifty index fell on expected lines from an important resistance of 21750 levels as mentioned in our previous post dated Jan 23, 2024. Going ahead, we reiterate our bearish view on Nifty index and suggest traders to maintain sell on rise trading strategy till it is trading below 21600 levels on closing basis.

Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty futures with decrease in open interest by 5.4%, whereas short buildup was seen in Banknifty and Finnifty futures with increase in open interest by 17.3% and 6% respectively.

Nifty and Banknifty futures rolled 46% & 42% of open interest respectively into next contract so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 20500 PE closely followed by 21000 PE and 22000 CE followed by 21700 CE.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3115 Cr in the cash segment, bought stocks futures and index future worth Rs 659 Cr and Rs. 186 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 214 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21400-21510; Supports 21100-20975

Banknifty – Resistances 45760-46320; Supports 44460-43940

Finnifty – Resistances 20500-20760; Supports 19930-19720

 

F&O Securities in Ban Today  – BALRAMCHIN, IRCTC, NATIOANALUM, OFSS, RBLBANK.

 

Important Results Today – BAJAJAUTO, BALKRISIND, BDL, BSOFT, CANBK, CARERATING, CEAT LTD CONCOR, DALBHARAT, DLF, INDIANB, IOB, IOC, LAURAUSLABS, PNBHSGFIN, RAILTEL, TATASTEEL, TECHM, TVSMOTOR, UCOBANK, UJJIVANSFB.

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