Trendlyne Marketwatch
Trendlyne Marketwatch
23 Jul 2024
Market closes lower, Long-Term Capital Gains tax up to 12.5%
By Trendlyne Analysis

 

 

Nifty 50 closed at 24,479.05 (-30.2, -0.1%) , BSE Sensex closed at 80,429.04 (-73.0, -0.1%) while the broader Nifty 500 closed at 22,865.20 (-77.5, -0.3%). Market breadth is in the red. Of the 2,165 stocks traded today, 942 were on the uptrend, and 1,205 went down.

Indian indices extended the losses from the afternoon session and closed in the red. The Indian volatility index, Nifty VIX, fell by 18.4% and closed at 12.6 points. In the Union Budget 2024, the government raised tax on short-term capital gains to 20% from 15%. Tax on long-term capital gains increases to 12.5% from 10%. The Centre has also increased the exemption limit for capital gains to Rs 1.25 lakh per year.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red taking cues from the benchmark index. Nifty FMCG and BSE Consumer Durables were among the top index gainers today. According to Trendlyne’s Sector dashboard, Textiles Apparels & Accessories emerged as the best-performing sector of the day, with a jump of over 3.3%.

Asian indices closed in the red while European indices are trading mixed. US index futures traded lower, indicating a cautious start to the trading session. Brent crude oil futures are trading in the green. Morgan Stanley anticipates that by 2025, the increase in supply from both OPEC and non-OPEC producers, estimated at approximately 2.5 million barrels per day (bpd), will surpass the expected growth in demand.

  • HDFC Asset Management sees a short buildup in its July 25 future series as its open interest rises 18% with a put-call ratio of 0.4.

  • Gland Pharma gets US FDA approval for its latanoprostene bunod ophthalmic solution, used in reduing elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension. It has annual sales of $153 million.

  • SpiceJet rises sharply as its board of directors approves a qualified institutional placement (QIP) of shares worth Rs 3,000 crore.

  • Finance Minister Nirmala Sitharaman announces a significant allocation for PLI for Auto & Auto Components at Rs 73,500 crore, compared to the FY24 revised estimate of Rs 2,484 crore. However, the FAME India allocation stands at Rs 2,672 crore, down from the revised estimate of Rs 4,807 crore in FY24.

  • Bata India's board approves the closure of the Southcan unit in Karnataka. The factory contributed around 6.3% of the company's total production capacity in FY24.

  • Paytm rises as it partners with Axis Bank to provide point of sales (POS) solutions and electronic data capture (EDC) devices to the bank and its merchant network. This partnership will expand Paytm's market reach through Axis Bank's merchant base.

  • Steel Strips Wheels falls as its Q1FY25 net profit decreases by 13.9% YoY to Rs 40.4 crore, while revenue drops by 2.1% YoY. The company's EBITDA margin rises 20 bps YoY to 11%. It appears in a screener for stocks with strong annual EPS growth.

  • Finance Minister Nirmala Sitharaman proposes three schemes focused on employment-linked incentives and reveals a Rs 2 lakh crore allocation for job creation over the next five years.

  • Plastic products stocks like Supreme Industries, Astral and Finolex Industries fall in trade after the government increases customs duty on PVC flex banners to 25% from 10%.

  • Chemical stocks like SRF, PI Industries, UPL and Deepak Nitrite are falling in trade as Finance Minister, Nirmala Sitharaman, increases customs duty on ammonium nitrate to 10% from 7.5%.

  • Sanstar's Rs 510.2 crore IPO gets bids for 32.1X the available 3.8 crore shares on offer on the third day of bidding. The retail investor quota gets bids for 19.3X the available 1.9 crore shares on offer.

  • Finance Minister Nirmala Sitharam proposes to increase the security transactions tax (STT) on futures and options of securities to 0.02% and 0.1%. She also proposes to tax income received on the buyback of shares.

  • Food stocks like HMA Agro, Zeal Aqua, and Sharat Industries are rising in trade after Finance Minister Nirmala Sitharaman announces plans to promote shrimp farming through NABARD financing and marketing initiatives. She also proposes a customs duty cut on brood stocks, shrimps, and fish feed to 5%.

  • Stocks based in Andhra Pradesh, including NCC, Andhra Cements, and KCP rise after the FinMin announces the Centre will provide Rs 15,000 crore with additional amounts in the coming years. The allocation will also include support for the early completion and financing of the Polavaram irrigation project.

  • The Finance Minister proposes increasing the standard deduction for salaried employees from Rs 50,000 to Rs 75,000 under the new tax regime.

  • Telecom equipment manufacturers like ITI, Avantel and Optiemus Infracom are falling in trade as the government increases customs duty on telecom equipment to 15% from 10%.

  • Finance Minister Nirmala Sitharaman announces an allocation of Rs 1,000 crore for space technology development.

  • Finance Minister Nirmala Sitharaman announces the reduction in corporate tax rate on foreign companies from 40% to 35%.

  • The Finance Minister announces revised tax slabs under the new regime. The tax remains ‘Nil’ for income up to Rs 3 lakh, 5% for income between Rs 3-7 lakh, and 10% for income in the Rs 7-10 lakh range. The tax for Rs 10-12 lakh stands at 15%, 20% for Rs 12-15 lakh, and 30% for Rs 15 lakh and above.

  • Agriculture stocks like Kaveri Seed, Insecticides (India), and LT Foods are rising in trade as the government allocates a capex of Rs 1.5 lakh crore.

  • The Finance Minister announces a scheme to facilitate term loans to Micro, Small & Medium Enterprises (MSME) for the purchase of machinery and equipment without collateral or third-party guarantee. She proposes a credit guarantee scheme of Rs 100 crore to the MSME sector.

  • Finance Minister Nirmala Sitharaman proposes reducing customs duties on mobile phones and related components to 15%.

  • The government raises tax on short-term capital gains to 20% from 15%. Tax on long-term capital gains increases to 12.5% from 10%. The Centre also increases the exemption limit for capital gains to Rs 1.3 lakh per year.

  • Finance Minister Nirmala Sitharaman proposes to cut the customs duty on gold and silver to 6% during the Budget. She also proposes to reduce customs duty on platinum to 6.4%.

  • Defence stocks like Mazagon Dock Shipbuilders, Data Patterns, and Hindustan Aeronautics fall in trade after the government allocation for the sector remains unchanged at Rs 4.6 lakh.

  • Realty stocks like Puravankara, Oberoi Realty, and Unitech surge as the government assigns a Rs 10 lakh crore investment to meet the housing needs of 1 crore urban poor and middle-class families.

  • The Finance Minister announces the fiscal deficit target for FY25 at 4.9%, down from 5.1% during the interim Budget.

  • Cement & construction stocks like NCC, Alhluwalia Contracts, and Gensol Engineering surge more than 5% as the government assigns a capex of Rs 2.7 lakh crore for rural infrastructure development.

  • Mangalore Refinery & Petrochemicals falls sharply as its net profit plunges 92.8% YoY to Rs 73.2 crore in Q1FY25, due to higher raw materials, excise duty, and employee benefits expenses. However, revenue grows by 9.9% YoY to Rs 27,334.1 crore during the quarter. It shows up in a screener of stocks underperforming their industries over the past quarter.

  • Federal Bank rises as it gets the Reserve Bank of India's approval to appoint Krishnan Venkat Subramanian as the Managing Director and Chief Executive Officer, effective September 23, 2024.

  • The Centre keeps the FY25 capex outlay at Rs 11.1 lakh crore, or 3.4% of the GDP. This is higher than the FY24 revised estimate of Rs 9.5 lakh crore.

  • Suzlon Energy surges to its all-time high of Rs 57.8 per share as its net profit grows by 199.6% YoY to Rs 302.3 crore in Q1FY25, helped by lower finance costs and foreign exchange loss. Revenue increases by 50.1% YoY to Rs 2,044.4 crore, attributed to an improvement in the wind turbine generator segment. It appears in a screener of stocks with reducing debt.

  • RailTel Corp of India rises as it wins an order worth Rs 186.8 crore from the Ministry of Railways to develop HMIS and an integrated empanelled hospital referral portal for Indian Railways.

  • Gensol Engineering surges to its 5% upper circuit as it bags an engineering, procurement, and construction (EPC) order worth Rs 600 crore to set up 116 MW solar projects in Gujarat. The projects will be distributed in 2 locations across the state and are expected to be completed in the next 12 months.

  • Finance Minister, Nirmala Sitharaman announces the provision of Rs 2.66 lakh crore for rural development including rural infrastructure during the Annual Budget.

  • SBI Life Insurance buys a 0.8% stake in Can Fin Homes for approx Rs 82.8 crore in a bulk deal on Monday.

  • Ashish Kacholia sells a 0.8% stake in Sastasundar Ventures in Q1FY25. He now holds a 1.1% stake in the company.

  • Coforge's Q1FY25 net profit plunges 40.5% QoQ to Rs 133.2 crore due to higher employee benefits expenses. However, revenue grows by 2.4% QoQ to Rs 2,426.2 crore, driven by an improvement in the Americas and Asia Pacific markets. It features in a screener of stocks with declining return on equity (RoE) over the past two years.

  • Nifty 50 was trading at 24,547.75 (38.5, 0.2%), BSE Sensex was trading at 80,724.30 (222.2, 0.3%) while the broader Nifty 500 was trading at 22,994.90 (52.3, 0.2%).

  • Market breadth is in the green. Of the 1,897 stocks traded today, 1,134 were on the uptrend, and 732 went down.

Riding High:

Largecap and midcap gainers today include Titan Company Ltd. (3,466.85, 6.5%), ITC Ltd. (492.20, 5.5%) and Suzlon Energy Ltd. (57.83, 5.0%).

Downers:

Largecap and midcap losers today include Rail Vikas Nigam Ltd. (590.30, -5.4%), Indian Railway Finance Corporation Ltd. (194.14, -5.1%) and Macrotech Developers Ltd. (1,369.90, -4.7%).

Volume Rockets

26 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included AstraZeneca Pharma India Ltd. (7,067.60, 13.1%), C.E. Info Systems Ltd. (2,456.70, 8.7%) and Asahi India Glass Ltd. (697, 8.3%).

Top high volume losers on BSE were Oberoi Realty Ltd. (1,687.10, -3.3%), Shriram Finance Ltd. (2,739.20, -3.1%) and Laurus Labs Ltd. (430.45, -2.5%).

Elgi Equipments Ltd. (669.80, -1.6%) was trading at 19.7 times of weekly average. Easy Trip Planners Ltd. (42.24, 5.6%) and NCC Ltd. (337.75, 6.7%) were trading with volumes 13.8 and 11.5 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

25 stocks took off, crossing 52 week highs,

Stocks touching their year highs included - Indus Towers Ltd. (434.55, 3.0%), Britannia Industries Ltd. (5,944.75, 1.0%) and Colgate-Palmolive (India) Ltd. (3,168.85, 1.0%).

13 stocks climbed above their 200 day SMA including Sonata Software Ltd. (683.50, 3.0%) and Procter & Gamble Hygiene & Healthcare Ltd. (16,900, 2.3%). 22 stocks slipped below their 200 SMA including PNB Housing Finance Ltd. (757.40, -4.4%) and ITI Ltd. (295, -2.6%).

 
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