Sensex sinks 398 pts, Nifty below 16,950 as STT hike, global cues weighs

CLOSING BELL: The debt mutual fund (Debt MF) investors will no longer receive the long-term capital gain tax benefit. Moreover, the Centre also hiked the STT on the sale of F&O contracts

4:13 PM

COMMENT:: Volatility in European markets fuel weakness

"Cues from both the global and domestic markets were subdued. The asset management industry was hit hard by tax changes and the elimination of the indexation benefit of debt mutual funds. The volatility was fuelled by weak European markets, which was driven by banking stocks as CDS spread increased. Although all major sectors traded in the red, selling in the IT sector was limited despite warnings of muted growth."

 

- Vinod Nair, Head of Research at Geojit Financial Services

 

4:09 PM

Nifty: The NSE benchmark could drop to 16,750

"Nifty slipped below the crucial level of 16,950 as the bears gained control of the market. Furthermore, the Nifty fell after a few days of consolidation, indicating an increase in bearish bets. The momentum indicator RSI is in bearish crossover. In the short term, the index may fall, with a potential drop to 16,750. On the higher end, resistance is visible at 17,200."

 

- Rupak De, Senior Technical Analyst at LKP Securities

4:09 PM

Bank Nifty:: Momentum in favour of the bears; sharp slide possible below 39,000

"The Bank Nifty bears took over the control on the last day of the week and the index ended on a negative note. The index as long as does not surpass the level of 40,000 remains in a sell on rise mode. The immediate support on the downside is at 39,000 and a breach below this will lead to a sharp decline. The momentum indicator RSI trading in the bearish zone confirms the weakness in the index."

 

- Kunal Shah, Senior Technical Analyst at LKP Securities

4:04 PM

GQG Partners' investment in Adani Green Energy soars 100% in 15 days

Imvestment made by GQG Partners in Adani Green Energy have fetched the Australia-based asset management company over 100 per cent returns in just 15 trading sessions. GQG Partners have earned over Rs 2,900 crore or 104 per cent during the period. READ MORE

4:02 PM

Sundaram-Clayton trades ex-date for scheme of arrangement; stock cracks 20%

The board at its meeting held on February 9, 2022 had approved the Composite Scheme of Arrangement of the company for issue of bonus NCRPS and demerger of manufacturing undertaking. READ MORE

4:00 PM

Two smallcap stocks touch new highs; have zoomed up to 49% in past three months

In the past three months, Vardhman Special Steels has zoomed 49% and KPIT Technologies has surged 41% as compared to a 3% decline in the S&P BSE Sensex. READ MORE

3:59 PM

Campus Activewear tanks 8% after over 9% equity changes hand on NSE

According to media report private equity firm TPG had plans to sell 7.62 per cent stake worth Rs 800 crore in Campus Activewear via a block deal at Rs 345 per share. READ MORE

3:56 PM

LIC plans investment exposure caps post Adani share rout: Reports

After the Adani group lost over $100 billion in valuation post scathing allegations by U.S.-based Hindenburg Research, state-run LIC was criticized for having over $4 billion exposure. READ MORE

3:55 PM

Govt deals tax blow to debt mutual funds, AMC stocks tumble

In a move to remove the tax advantage enjoyed by debt mutual funds over bank fixed deposits, the government has proposed to tax gains arising from debt MFs at the investor's slab rate, irrespective of the investment period. READ MORE

3:53 PM

Godrej Properties, Amber Enterprises hit 52-week lows; LIC at life-time low

LIC hit a life-time low of Rs 562.35, falling below its previous low of Rs 566 touched on February 27, and was down 9% in three weeks. READ MORE

3:51 PM

Market Breadth was extremely negative; 322 stocks hit 52-week lows

3:49 PM

BSE Smallcap Heatmap:: TTK Healthcare, ITI zoom over 13%; Sundaram-Clayton sinks 20%

3:47 PM

BSE Midcap Heatmap:: TI India, Patanjali shine; AB Capital, Rajesh Exports whine

3:45 PM

Nifty Oil & Gas index ends 1.4% lower; Petronet, OIL India dip up to 3%

3:44 PM

Nifty PSU Bank index slips over 2%; Bank of India, Maha Bank decline around 4%

3:41 PM

Nifty Metal index slumps 2.3%; Jindal Steel, SAIL drop up to 4%

3:40 PM

Broader indices end with deeper cuts; India VIX jumps over 5%

3:38 PM

Nifty 50 Losers:: Bajaj twins, metal shares take a knock

3:37 PM

Nifty 50 Gainers:: Cipla up 1%; Kotak Bank, Apollo Hospitals notable movers

3:35 PM

Sensex 30 Heatmap:: 5 Gainers v/s 25 Losers

3:34 PM

CLOSING BELL:: NSE Nifty50 plunged 132 points to 16,945

3:32 PM

CLOSING BELL:: S&P BSE Sensex extends fall, ends 398 points lower at 57,527

3:23 PM

Global Check:: US stock futures slip over 0.5%; UK tumble nearly 2%

Source: Investing.com

3:16 PM

ALERT :: 5 executives resign from Nykaa, reports Reuters

3:16 PM

BSE 500:: Sundaram-Clayton, Hikal, Campus Activewear among top losers

Sundaram-Clayton down 20 per cent was the top loser among the BSE 500 stocks. Hikal, Campus Activeweak, Network 18 Media and Aditya Birla Capital, down 6 - 8 per cent each were the other major losers so far on Friday.

3:08 PM

News Alert:: Manappuram Finance board okays Rs 8,000 cr fund raising plan for FY24

In a release to the BSE, the company said it plans to raise up to Rs 8,000 crore the financial year 2023-24 by way of issuance of redeemable non-convertible debentures.

3:00 PM

Expert comment: Debt fund taxation will drive money towards FDs, SGBs, and equity MFs

The proposed changes in debt fund taxation, also applicable to gold funds, international funds and domestic fund  of funds will have far reaching consequences. When STCGs are imposed on debt funds, the taxation will be similar to taxation of bank FDs. This is a blow to debt market.

 

The important consequences will be as follows:

>> More money will move to bank FDs
>> Equity mutual funds and hybrid funds with above 35 per cent investment in equity will attract more investments
>> Sovereign Gold Bonds will attract more funds
>>Since investment up to 31st March 2023 will be grand fathered, investors can invest in debt funds and international funds in the next few days up to 31st March
>> The biggest gainer will be the exchequer with increasing tax revenue
 

Views expressed by Dr. VK Vijayakymar, Chief Investment Strategist at Geojit Financial Services

2:58 PM

COMMENT on Debt fund taxation:: Tax policy moving to a simple, consistent tax regime

"The proposed changes in debt fund taxation, also applicable to gold funds, international funds and domestic fund  of funds will have far reaching consequences. When STCGs are imposed on debt funds, the taxation will be similar to taxation of bank FDs. This is a blow to debt market.

 

The important consequences will be as follows:

 

More money will move to bank FDs.

 

Equity mutual funds and hybrid funds with above 35% investment in equity will attract more investment.

 

Sovereign Gold Bonds will attract more funds.

 

Since investment up to 31st March 2023 will be grand fathered, investors can invest in debt funds and international funds in the next few days up to 31st March.

 

The biggest gainer will be the exchequer with increasing tax revenue.

 

Even though the proposed changes are a blow to the debt market, these changes simplify the tax system by taxing all fixed income products like. This proposed reform mainly targets HNIs and family offices who gained from the tax arbitrage under the existing tax regime.

 

The proposed changes are in line with the philosophy of the new default personal income tax regime without exemptions. India’s tax policy is moving to a simple, consistent tax regime with no room for tax exemptions and arbitrage."

 

- Dr. VK Vijayakymar, Chief Investment Strategist at Geojit Financial Services

2:55 PM

Expert comment: Debt taxation rejig will impact allocation decision

The change in debt taxation would meaningfully impact allocation decision. For the same expected return, investors will have to take higher risk going forward. Assuming an investors target return was post tax 7% pa over 3 years, that is currently achievable by investing 100% in a Target maturity fund that invested in AAA papers. Going forward, assuming yields don’t change, the investor will have to invest over 25% in equities (assuming 13% equity return), to achieve the same target return! The change is risk is high.

Views expressed by Roopali Prabhu – Chief Investment Officer & Executive Director,  Private Wealth Group, JM Financial

2:50 PM

GQG Partners' investment in Adani Green Energy soars 100% in 15 days

Imvestment made by GQG Partners in Adani Green Energy have fetched the Australia-based asset management company over 100 per cent returns in just 15 trading sessions. GQG Partners have earned over Rs 2,900 crore or 104 per cent during the period. READ MORE