Dear Trader…
Indian equity benchmarks snapped their 3-day winning streak to end lower in a highly volatile session on Tuesday, as investors are eyeing GDP numbers for the fourth quarter of the previous fiscal year (2021-22) to be out later in the day. As per the expectations, India's economy likely slowed in the fourth quarter and is expected to grow between 3.5-5.5 percent. Markets made gap-down opening, as traders were anxious with domestic ratings agency India Ratings stating that the GST has not helped states achieve the key objective of boosting their tax revenue. The rating agency said that the data does not point to any benefits to the states in the last five years since the implementation of GST (Goods and Services Tax).
Though, markets failed to hold on to recovery mode and fell sharply in late afternoon deals, as some pessimism remained among traders with private report stated that soaring prices and the subsequent hit to consumer spending and investments are likely to further dampen India's economy, as the central bank faces a finely balanced struggle to tame inflation via rate hikes without hurting economic growth.
Nifty futures opened at 16589.00 points against the previous close of 16643.45 and opened at a low of 16528.05 points. Nifty Future closed with an average movement of 163.80 points and a decline of around 73.40 points and 16570.05 points...!!
On the NSE, the midcap 100 index will decline 0.13% and smallcap 100 index is closing rise 1.24%. Speaking of various sectoral indices, the NSE saw gains in only Realty, Media, Metal, Auto and FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, June gold opened at Rs.50959, fell from a high of Rs.51180 points to a low of Rs.50890 with a rise of 85 points, a trend of around Rs.51000 and May Silver opened at Rs.61597, fell from a high of Rs.61874points to a low of Rs.60760, with a decline of 362 points, a trend of around Rs.61520.
Meanwhile, expressing cautiousness, domestic ratings agency India Ratings has said the Goods and Services Tax (GST) has not helped states to achieve the key objective of boosting their tax revenue. It said that the data does not point to any benefits to the states in the last five years since the implementation of GST (Goods and Services Tax). From June this year, the Centre will stop giving states any compensation for tax collection shortfall. GST compensation for a five-year period was part of the agreement between states and the central government at the time of the roll-out of the new indirect tax regime in 2017.
Several states have asked for an extension of the GST compensation. However, finance minister Nirmala Sitharaman, while presenting the Budget for FY23, has already said that the compensation period will not be extended beyond June 2022. The rating agency said ‘...the data available so far does not instill confidence with respect (of) GST achieving or is on course to achieve its two key objectives, namely it boosts the tax revenue and is beneficial for the consuming states’. It said the share of state GST (SGST) in States' Own Tax Revenue (SOTR) at 55.4 per cent during FY18-FY21 compared 55.2 per cent during FY14-FY17 indicates that the growth in both SGST and non-SGST components of SOTR has been broadly similar.
Technically, the important key resistances are placed in Nifty future are at 16606 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 16676 – 16707 levels. Immediate support is placed at 16474 – 16404 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
