IGI Logo

Indian equity benchmarks were trading near their intraday low points, on the back of mixed cues from other Asian markets along with selling in Auto and Telecom stocks. Traders got cautious amid a private report stating that India's fast-depleting foreign exchange reserves are likely to drop more than was predicted just a month ago by end-2022 as the Reserve Bank of India will continue to shield the rupee from the dollar's strength. The street overlooked report that credit to industries in September 2022 grew at the fastest pace it has grown in the last 100 months, aided primarily by a pick-up in working capital loans from corporates. Traders also paid no heed towards RBI governor Shaktikanta Das’ statement that India today presents a picture of resilience and optimism for the world.

Asian markets were trading mixed, after the monetary base in Japan dropped 6.9 percent on year in October, coming in at 615.262 trillion yen. That follows the 3.3 percent decline in September. Banknotes in circulation rose 2.9 percent on year, while coins in circulation fell 3.2 percent. Current account balances were down 9.0 percent on year, including a 10.3 percent drop in reserve balances.

The BSE Sensex is currently trading at 60937.98, down by 183.37 points or 0.30% after trading in a range of 60903.52 and 61209.65. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell by 0.01%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were Metal up by 1.19%, Healthcare up by 0.81%, Energy up by 0.34% and Oil & Gas up by 0.30%, while Auto down by 1.07%, Telecom down by 1.00%, TECK down by 0.95%, Realty down by 0.69% and Power down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.51%, ITC up by 1.32%, HDFC Bank up by 0.60%, Dr. Reddy's Lab up by 0.50% and Tata Steel up by 0.40%. On the flip side, Bharti Airtel down by 2.65%, Maruti Suzuki down by 2.27%, Hindustan Unilever down by 1.44%, Nestle down by 1.41% and Titan down by 1.39% were the top losers.

Meanwhile, the government has cut the windfall tax on domestically produced crude oil to Rs 9,500 per tonne from Rs 11,000 per tonne earlier, while increasing the rate on export of diesel and jet fuel (ATF) in line with rise in international oil prices.

In the fortnightly revision of windfall tax, the government has hiked the rate on export of diesel to Rs 13 per litre from Rs 12 per litre. The levy on jet fuel too was increased to Rs 5 a litre, from Rs 3.50. The levy on diesel includes Rs 1.50 per litre road infrastructure cess (RIC). When the levy was first introduced, a windfall tax on export of petrol alongside diesel and ATF too was levied. But the tax on petrol was scrapped in subsequent fortnightly reviews.

While the windfall profit tax is calculated by taking away any price that producers are getting above a threshold, the levy on fuel exports is based on cracks or margins that refiners earn on overseas shipments. These margins are primarily a difference of international oil price realised and the cost. India first imposed windfall profit taxes on July 1, joining a growing number of nations that tax super normal profits of energy companies.

At that time, export duties of Rs 6 per litre ($12 per barrel) each were levied on petrol and aviation turbine fuel and Rs 13 a litre ($26 a barrel) on diesel. A Rs 23,250 per tonne ($40 per barrel) windfall profit tax on domestic crude production was also levied. The duties were partially adjusted in the previous rounds on July 20, August 2, August 19, September 1, September 16, October 1 and October 16.

The CNX Nifty is currently trading at 18085.65, down by 59.75 points or 0.33% after trading in a range of 18081.35 and 18178.75. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 7.18%, Adani Enterprises up by 6.29%, Hindalco up by 4.51%, NTPC up by 4.25% and Sun Pharma up by 4.18%. On the flip side, Axis Bank down by 4.53%, Eicher Motors down by 3.39%, Apollo Hospital Ent. down by 2.97%, Maruti Suzuki down by 2.95% and Bharti Airtel down by 2.30% were the top losers.

Asian markets were trading mixed; Hang Seng increased 371.90 points or 2.41% to 15,827.17, Taiwan Weighted strengthened 62.96 points or 0.48% to 13,100.17, KOSPI rose 1.65 points or 0.07% to 2,336.87 and Shanghai Composite gained 33.34 points or 1.12% to 3,002.54. On the flip side, Nikkei 225 slipped 15.53 points or 0.06% to 27,663.39, Straits Times trembled 2.62 points or 0.08% to 3,127.88 and Jakarta Composite lost 53.82 points or 0.76% to 6,998.48.

Above views are of the author and not of the website kindly read disclaimer