Dear Trader…
Indian bourses extended their losses and were trading with cut of over half a percent each in Today session amid concerns about the fate of China Evergrande. Most of the sectoral indices were trading lower and Realty was the top loser on BSE, down by around 4% followed by TECK and IT indices, trading down over 2%. Sentiments were fragile as finance ministry said the government will borrow Rs 5.03 trillion in the second half of the current fiscal to fund the revenue gap for reviving the pandemic-hit economy. Also, traders’ will closely watch Sebi's board meeting scheduled today for the regulator's decision on a few important things. While private equity firms could be allowed to acquire or set up their own asset management companies, a decision on superior voting rights may give founders of new-age companies more flexibility to raise capital before going public.
On the global front, Asian markets were trading mostly lower as investors fretted over China Evergrande Group's debt crisis and a widening power shortage in China. Back home, on the sectoral front, textile stocks were in focus as according to a notification of the textiles ministry only manufacturing companies registered in India will be eligible to participate under the recently approved Rs 10,683-crore production-linked incentive (PLI) scheme for the textiles sector.
Nifty futures opened at 17880.05 points against the previous close of 17856.75 and opened at a low of 17586.25 points. Nifty Future closed with an average movement of 317.65 points and a decline of around 126.25 points and 17730.50 points...!!
On the NSE, the midcap 100 index will decline 0.67% and smallcap 100 index is closing decline 0.54. Speaking of various sectoral indices, the NSE saw gains in Metal, Pharma, PSU Bank, Consumer Durables End Oil & Gas while all other sectoral indices closed Higher.
At the start of intra-day trading, October gold opened at Rs.46071, fell from a high of Rs.46071 points to a low of Rs.45730.00 with a decline of 238 points, a trend of around Rs.45831 and September Silver opened at Rs.60572, fell from a high of Rs.60585 points to a low of Rs.59612, with a decline of 806 points, a trend of around Rs.59828.
Meanwhile, Finance Ministry has set up two committees of state finance ministers which would rework rate slabs, review GST exempt items and identify potential evasion sources. Four years after the rollout of the national Goods and Services Tax (GST), which replaced the complex indirect tax structure, the center and states have started work on moving towards a ''simpler rate structure in GST'' by reviewing the current rate slabs, including special rates and merger of rate slabs.
The Group of Ministers (GoM) on rate rationalization would also review items under inverted duty structure to help minimize refund payout, and review the supply of goods and services exempt under GST to expand the tax base and eliminate breaking of input tax credit (ITC) chain. The GoM on GST system reforms would identify potential sources of evasion and suggest changes in business processes and IT systems to plug revenue leakage.
The panel, which would give its recommendation to the council from time to time, would review IT tools and interface available with taxmen and suggest ways to make them more effective, identify possible use of data analysis towards better tax compliance, and suggest ways of better coordination between central and state tax officers. The decision to set up these two GoMs was taken by the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, on September 17, 2021.
Technically, the important key resistances are placed in Nifty future are at 17777 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 17808 – 17838 levels. Immediate support is placed at 17676 – 17606 levels.
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