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Domestic indices remain in red in late morning deals
Jul-25-2024

Domestic equity indices trimmed some of their losses but continued to trade in red in late morning deals on account of selling by funds and retail investors. Markets fell due to disappointing quarterly result from Axis Bank, worsening the negative mood among investors already affected by the government's recent tax increases on equity investment gains and derivatives trading. Further, weak cues from the global markets also weighed on the domestic sentiments. On the BSE sectoral front, traders were seen pilling up positions in Oil & Gas, Energy, Capital Goods, Power and Industrials, while selling was witnessed in Bankex, Consumer Durables, Metal, Realty and IT.

On the global front, Asian markets were trading in red following negative cues from the US markets overnight. Traders were cautious as South Korea’s GDP grew 2.3% year on year, lower than the 2.5% expected by street. On a quarter on quarter basis, the country’s economy shrank 0.2%, compared to a 0.1% rise expected. Back home, in the stock specific development, Karnataka Bank surged on reporting 8% rise in Q1 net profit. 

The BSE Sensex is currently trading at 79788.43, down by 360.45 points or 0.45% after trading in a range of 79477.83 and 79807.90. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.29%, while Small cap index up by 0.01%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.28%, Energy up by 1.40%, Capital Goods up by 1.18%, Power up by 1.04% and Industrials up by 0.82%, while Bankex down by 1.46%, Consumer Durables down by 0.96%, Metal down by 0.93%, Realty down by 0.58% and IT down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 5.07%, Larsen & Toubro up by 2.54%, Kotak Mahindra Bank up by 1.00%, Adani Ports up by 0.64% and NTPC up by 0.55%. On the flip side, Axis Bank down by 6.44%, ICICI Bank down by 1.85%, Titan down by 1.74%, Tata Steel down by 1.34% and Tech Mahindra down by 1.25% were the top losers.

Meanwhile, the Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal has said that about 66 per cent of taxpayers out of the over 40,000,000 filers have opted for the new regime for income tax return (ITR) filing during the current season till now. He noted that the focus of the government and the direct taxes administration is on simplification of the tax processes including filing of ITRs and conduct of other businesses with the Income Tax Department. 

The CBDT chief said about 7.5 crore ITRs were filed the last time at the end of the deadline on July 31, 2024. The current ITR filing season for assessment year 2024-25 will similarly end on July 31 for different categories of taxpayers whose accounts are not supposed to be audited. He said more transactions are being automatically reported to the taxpayers (while filing ITR) and this meant that more information is being made available to the taxpayer.  He said ‘so therefore, we expect that the compliance will be more because simplification is also simultaneously taking place’. 

Agrawal said so far, as the new tax regime is concerned, the government is nudging the taxpayer towards opting for it and therefore this is being sweetened also, by way of changing the tax slabs, which gives benefit to the taxpayers. Talking about the end of the old regime, he said the process was in the ‘transition stage’ and a call would be taken at an appropriate time after it is seen which regime has better acceptability among the taxpayers.

The CNX Nifty is currently trading at 24329.00, down by 84.50 points or 0.35% after trading in a range of 24210.80 and 24333.35. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.09%, ONGC up by 3.90%, BPCL up by 2.67%, Larsen & Toubro up by 2.57% and SBI Life up by 2.01%. On the flip side, Axis Bank down by 6.44%, Shriram Finance down by 2.59%, ICICI Bank down by 1.92%, Titan down by 1.86% and Tata Steel down by 1.35% were the top losers.

All Asian markets were trading lower; Hang Seng declined 284.04 points or 1.67% to 17,027.01, Jakarta Composite plunged 43.08 points or 0.6% to 7,219.68, Shanghai Composite weakened 13.52 points or 0.47% to 2,888.43, Straits Times fell 32.51 points or 0.95% to 3,428.31, KOSPI dropped 46.09 points or 1.7% to 2,712.62 and Nikkei 225 slipped 1286.96 points or 3.4% to 37,867.89. 
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