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.
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






Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.