Markets trade higher in early deals

The BSE Mid cap index rose 0.27%, while Small cap index was up by 0.43%

Indian equity benchmarks made positive start on Tuesday despite weakness in global peers. Markets are trading higher with notable gains in early deals on account of buying in Consumer Durables, Consumer discretionary and Realty counters. Sentiments got a boost as preliminary data released by the commerce and industry ministry showed merchandise exports grew 48 per cent YoY in July to $35.17 billion on account of a rise in global orders in shipments of petroleum products, engineering products, gems and jewellery segments. Addition optimism, Finance Minister Nirmala Sitharaman said the government's net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021. Though, upside remained capped as a periodic labour force survey by the National Statistical Office (NSO) showed that unemployment rate rose to 13.3 per cent in July-September 2020 as compared to 8.4 per cent in the year-ago period.

On the global front, Asian markets were trading mixed following the mixed cues from Wall Street overnight, with a dip in crude oil prices and the surge in the spread of the delta variant of coronavirus in several countries weighing on investors' sentiment. The spread of the virus in several markets in the region is also slowing down the pace of the economic recovery from the pandemic. Back home, metal stocks were in focus as the country's steel output took a hit during the April-June period of 2021 due to the emergence of the second wave of Covid-19 pandemic. In scrip specific development, State Bank of India traded higher amid report that it announced a 100 percent waiver on processing fees on home loans till August 31, 2021.

The BSE Sensex is currently trading at 53155.34, up by 204.71 points or 0.39% after trading in a range of 53088.35 and 53201.17. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.43%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.14%, Consumer discretionary up by 0.79%, Realty up by 0.73%, FMCG up by 0.71%, Healthcare up by 0.66%, while Metal down by 0.46%, Telecom down by 0.14%, Basic Materials down by 0.07%, Energy down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.88%, Titan Company up by 2.86%, Sun Pharma up by 2.26%, Power Grid Corp up by 1.08% and Nestle up by 0.91%. On the flip side, HCL Technologies down by 0.71%, Bajaj Auto down by 0.61%, Tata Steel down by 0.55%, ICICI Bank down by 0.45% and NTPC down by 0.13% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said the government’s net tax revenues grew 5 per cent in the fiscal year ended March 31, 2021 (FY21). The net tax (sum of direct and indirect taxes) revenue in 2020-21 was over Rs 14.24 lakh crore, a nearly 5 per cent growth from Rs 13.56 lakh crore in the previous financial year. However, non-tax revenue collection dipped 36 per cent to Rs 2.08 lakh crore in 2020-21 from over Rs 3.27 lakh crore in 2019-20. The government’s net revenue (tax+non-tax) collection in the last financial year declined 3.09 per cent to Rs 16.32 lakh crore.

Sitharaman said the government has taken many steps to boost both direct and indirect tax revenue collection, through curbing tax evasion, widening/deepening tax base, promoting voluntary compliance, reducing litigation and promoting digital transactions.

Besides, the total cess and surcharge collection under indirect taxes (GST+non-GST) increased 53 per cent to over Rs 4.39 lakh crore in 2020-21 as compared to the previous year. In 2018-19 and 2017-18, the cess collection under indirect taxes was Rs 2.67 lakh crore and Rs 2.17 lakh crore, respectively.

The CNX Nifty is currently trading at 15937.30, up by 52.15 points or 0.33% after trading in a range of 15914.35 and 15951.60. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 3.40%, Asian Paints up by 2.92%, Sun Pharma up by 2.08%, Tata Motors up by 1.15% and Tata Consumer Products up by 1.06%. On the flip side, Grasim Industries down by 1.29%, JSW Steel down by 1.00%, ONGC down by 0.73%, Bajaj Auto down by 0.63% and HCL Technologies down by 0.54% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 237.01 points or 0.85% to 27,544.01, Straits Times declined 26.43 points or 0.84% to 3,134.79, Hang Seng lost 214.32 points or 0.82% to 26,021.48 and KOSPI fell 0.69 points or 0.02% to 3,222.35. On the other hand, Taiwan Weighted added 8.93 points or 0.05% to 17,512.21, Jakarta Composite rose 25.98 points or 0.43% to 6,122.52 and Shanghai Composite was up by 0.02 points to 3,464.31.