Fuel prices in the country remained unchanged on Saturday with oil marketing companies continuing on the pause mode and keeping petrol and diesel prices static for 11th consecutive day.
Accordingly, pump price of petrol and diesel remained at previous days level of Rs 90.56 and Rs 80.87 a litre, respectively, in the capital.
Petrol and diesel fell by 22 paisa and 23 paisa per litre respectively last week on Tuesday in wake global softening of oil prices. OMC have decided to pause price revision as they want to watch the crude price movement that has now fallen to around $62.5 a barrel from remaining above this level in much of the last week.
Across the country as well the petrol and diesel price remain static on Saturday but its retail levels varied depending on the level of local levies on respective states.
In Mumbai, petrol continues to be priced at Rs 96.98 a litre and diesel at Rs 87.96 a litre. Premium petrol, however, continues to remain over Rs 100 a litre in the city as is the case with several cities across the country.
The OMCs went on price cut for the first time this year on two consecutive days - March 24 and 25 after keeping oil prices steady for past 24 days. It again reduced the price on March 30.
Thereafter, fuel prices have remained unchanged.
Earlier, petrol and diesel prices increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre, respectively, so far this year.
Officials in public sector oil companies said that retail price may rise again if crude and product prices pick up but for now it will fall or remain static for few more days.
The provisional figures of direct tax collections for the financial year 2020-21 showed that net collections are at Rs 9.45 lakh crore.
The net collection is around 5 per cent higher than the revised estimates for the 2020-21.
The net direct tax collections include corporation tax (CIT) at Rs 4.57 lakh crore and personal income tax (PIT), including security transaction tax (STT) at Rs 4.88 lakh crore.
"The net direct tax collections represent 104.46% of the Revised Estimates of Rs 9.05 lakh crore of direct taxes for the FY 2020-21," said a Finance Ministry statement.
The gross collection of direct taxes, before adjusting for refunds, for the FY21 stands at Rs 12.06 lakh crore, including corporation tax of Rs 6.31 lakh crore and personal income tax (including STT) of Rs 5.75 lakh crore.
It also includes advance tax of Rs 4.95 lakh crore, tax deducted at source (including Central TDS) of Rs 5.45 lakh crore, self-assessment tax of Rs 1.07 lakh crore, regular assessment tax of Rs 42,372 crore, dividend distribution tax of Rs 13,237 crore and tax under other minor heads of Rs 2,612 crore.
The official statement noted that despite an extremely challenging year, the advance tax collections for FY21 stand at Rs 4.95 lakh crore which shows a growth of approximately 6.7 per cent over the advance tax collections of the immediately preceding fiscal of Rs 4.64 lakh crore.
Further, refunds amounting to Rs 2.61 lakh crore have been issued in the FY21 as against refunds of Rs 1.83 lakh crore issued in the FY20, marking an increase of around 42 per cent over the previous financial year.
The key Indian equity indices traded marginally higher on Friday morning amid largely choppy trade session.
At around 10.35 a.m., Sensex was trading at 49,860.96, higher by 114.75 points or 0.23 per cent from its previous close of 49,746.21.
It opened at 49,743.39 and has so far touched an intra-day high of 49,906.91 and a low of 49,499.99 points.
The Nifty50 on the National Stock Exchange was trading at 14,896.75, higher by 22.95 points or 0.15 per cent from its previous close.
Manish Hathiramani, technical analyst with Deen Dayal Investments said: "The resistance of 14,950 has worked accurately for the Nifty. We failed to close above it. We need to get past 14,950-15,000 for an up move to commence.
"Thereafter it should be a bullish market which can take the index to 15,300-15,400. If we break 14,500, we can tumble to 14,200-14,300. It is a situation which requires patience and discipline. Traders need to be cautious."
The top gainers on the Sensex were Titan Company, Hindustan Unilever and the State Bank of India, while the major losers were Bajaj Finance, NTPC and Asian Paints
The key Indian equity indices traded in the green on Thursday morning with the BSE Sensex rising over 400 points to reclaim the 50,000-mark.
Around 10 a.m., Sensex was trading at 50,069.02, higher by 407.26 points or 0.82 per cent from its previous close of 49,661.76.
It opened at 49,885.26 and has so far touched an intraday high of 50,091.16 and a low of 49,832.35 points.
The Nifty50 on the National Stock Exchange was trading at 14,943.70, higher by 124.65 points or 0.84 per cent from its previous close.
Manish Hathiramani, technical analyst with Deen Dayal Investments: "We are currently trading at an important juncture. 14,900-14,950 is a resistance zone for the Nifty. If we can keep above this level for a few hours, the markets would break out of its current range bound movements and scale higher to 15,300-15,400."
"If we fail and resist these levels, the index can turn around and head back to 14,500-14,600," he said.
The Reserve Bank of India (RBI) has pegged retail inflation for the Apri-June quarter of the current financial year at 5.2 per cent.
Announcing the first Monetary Policy for FY22, RBI Governor Shaktikanta Das said that the consumer price index (CPI) inflation for the fourth quarter of the last fiscal has been revised to 5 per cent.
He noted that the evolving CPI inflation trajectory is likely to be subjected to both upside and downside pressures.
"The bumper foodgrains production in 2020-21 should sustain softening of cereal prices going forward, while the prices of pulses, particularly tur and urad, remain elevated, the incoming rabi harvest arrivals in the markets and the overall increase in domestic production in 2020-21 should augment supply which, along with imports, should enable some softening of these prices going forward," he said.
The RBI Governor added that while edible oils inflation has been ruling at heightened levels with international prices remaining firm, reduction of import duties and appropriate incentives to enhance productivity domestically could work towards a better demand-supply balance over the medium-term.
Suggesting that the states the Centre should take steps to control the rising fuel prices, Das said: "Pump prices of petroleum products have remained high. Reduction of excise duties and cesses and state level taxes could provide some relief to consumers on top of the recent easing of international crude prices. This could slow down the propagation of secondround effects."
The impact of high international commodity prices and increased logistics costs are being felt across manufacturing and services, he added.
Finally, inflation expectations of urban households one year ahead showed a marginal increase than over the three months ahead horizon according to the RBI's March 2021 survey.
"Taking into consideration all these factors, CPI inflation is now projected as 5.0 per cent in Q4:2020- 21; 5.2 per cent in Q1:2021-22, 5.2 per cent in Q2, 4.4 per cent in Q3 and 5.1 per cent in Q4, with risks broadly balanced."
The Monetary Policy Committee at its meeting on Wednesday decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent.
The key Indian equity indices traded in the green on Wednesday morning ahead of the Reserve Bank of India's monetary policy announcement.
At 10 a.m., the central bank is scheduled to make the announcement and the monetary policy committee (MPC) is expected to maintain the key lending rates due to inflationary pressure along with high bond yields during the first monetary policy review of FY22, experts contended
Around 9.30 a.m., Sensex was trading at 49,338.78, higher by 137.39 points or 0.28 per cent from its previous close of 49,201.39.
It opened at 49,277.09 and has so far touched an intra-day high of 49,407.23 and a low of 49,093.90 points.
The Nifty50 on the National Stock Exchange was trading at 14,738.70, higher by 55.20 points or 0.38 per cent from its previous close.
As the Indian equity market surged to new highs in just-ended financial year 2020-21, a look at the market trend shows that the robust performance of stocks took place on a rotational basis among the sectors during the year.
A report by IDFC Mutual Fund showed that sectoral rotation took place during the first and second halves of the last financial year.
Despite the sectoral rotation, metals stocks stood out throughout the year, as they outperformed in all the four quarters.
"Apart from that, significant sector rotation was seen from the first half of FY21 to the second half," it said.
In the first half, stable sectors like auto, IT and healthcare outperformed, while in the second half, cyclical sectors like capital goods, infrastructure, private and public sector banks outperformed.
The report indicated that the sectoral rotation may have just begun and may continue.
Further, noting that over the last three years, small caps and cyclical sectors have still underperformed, the report said, "outperformance in the current year of cyclical sectors is part of the catchup of the underperformance of the previous two years".
Despite the strong performance in the current year, cyclical sectors like PSU banks, telecom, auto, infra and metals continue to lag on a three-year basis, said the IDFC Mutual Fund report.
New Delhi, April 5 (IANS) The US Trade Representative (USTR) in its latest report on Foreign Trade Barriers released on March 31 has highlighted major trade barriers to American exports, FDI and e-commerce.
This report has been issued by Joe Biden Administration's newly appointed USTR, Katherine Tai who replaced Ambassador Robert Lighthizer after Donald Trump lost the election last year. It has found India's trade policies discriminatory which creates both tariff and non tariff-barriers and poses a threat to US trade and imports to India. Trade barriers include government laws, regulations and policies.
Duties, according to the report, have been increased across two large groups: Labour-intensive products and electronics and communication devices, such as cell phones, televisions, and related parts and components.
Earlier in January 2021, USTR had found India's Equalisation Levy as discriminatory and unreasonable,creating significant new tax burden for the US companies and/or restricting US commerce -- forcing them to undertake costly compliance measures.
Finance Ministry issued clarifications in February 2021, but the matter, instead of improving, has become much worse. US companies across the board have complained that the latest interpretation means that even merchandise trade will be subject to Equalisation Levy. The new interpretation is increasing nervousness and fear of tax terrorism, due to retrospective impact of such levy, even further.
According to the report, the United States' trade deficit with India in 2020 was up 1.7 per cent to $23.8 billion, exports down 20.1 per cent to $27.4 billion, and India's imports down 11.3 per cent to $51.2 billion, from last year. The report highlights that the US exporters continue to encounter significant tariff and non-tariff barriers. Additionally, there exists large disparities between WTO bound rates and India's MFN applied rates -- currently the highest in the world at 17.6 per cent.
In addition, the report also highlights the unpredictability and opaqueness that plagues India's tariff regime and how it poses major challenges to the US trade to India. As per the report, the Indian Government used the last two Union Budgets to increase tariffs on approximately 70 product categories, including key US exports, without warning or public consultation.
The report also places a major focus on barriers to Digital Trade. From wide-ranging data localisation requirements across sectors and policies like the Personal Data Protection Bill, 2019, RBI localisation guidelines, yet-to-be released e-commerce policy to the much discussed Equalisation Levy, the USTR claims that these digital barriers will impede foreign trade and increase the risk of retaliation from other countries, putting interests of Indian companies at risk.
Commerce Minister Piyush Goyal has made every attempt to negotiate a trade deal with previous USTR Lighthizer since September 2019, but without success. Fresh tariff hikes, equalisation levy and the recently notified IT Rules highlighted in the report, will further queer the pitch for a trade negotiation with the new USTR Katherine Tai, with whom Goyal has already held an introductory meeting two weeks ago.
As per the USTR, the recently notified IT Rules "incentivize overly restrictive approaches to policing non-IP user-generated content and will undermine many Internet-based platform services."
Metal stocks turned out to give the best returns in the pandemic-struck FY 2020-21. Analysts now feel the bull run is likely to continue with a pricing uptrend in the segment and increasing demand in the segment.
The metals and mining sector also saw a sharp increase in commodity prices and steel was one of the best-performing commodities in the just-ended FY21.
The S&P BSE Metal index has surged 176 per cent in the past one year.
Stock price of some of the major metal stocks Tata steel, JSW Steel and Hindalco Industries surged 240 per cent, 263 per cent and 294 per cent respectively.
An Axis Securities report noted that the earnings per share of metal stocks on the Nifty rose by 54 per cent after the third quarter of the last fiscal.
Noting that metals will report one of the best earnings trends, the report said that it is quickly getting factored into the prices.
"The metals and mining sector has seen a significant pricing uptrend as Chinese data has improved and dollar weakened. This trend is likely to persist in the medium term and metal stocks are likely to perform well," it said.
Metal futures which also were largely on a bull run in the last fiscal, are likely to stay in the uptrend going ahead, analysts said.
Steel prices rallied by 41 per cent in 2020, the Axis Securities report said.
Copper futures increased 26 per cent in 2020 and 11 per cent in the past one month.
Kshitij Purohit Lead, International & Commodity at CapitalVia Global Research Limited in a recent report noted that copper storage levels at the London Metal Exchange have decreased giving a deficit on supply side due to which prices may rise when combined with heavy volumes, capping the downside move in the metal.
The April contract of copper on the Multi Commodity Exchange (MCX) last closed at Rs 669.25 per kg.
On lead futures, he said that bullish momentum in the metal is expected to continue in the upcoming session.
The April contract on Thursday ended at Rs 162.85 per kg.
Vaccination drive along with earnings growth will determine India's stock markets' trajectory in FY22, said Motilal Oswal Financial Services Ltd. (MOFSL).
"As we step into FY22, two things will drive the markets from hereon, in our view. Given the recent resurgence in Covid-19 cases, the pace of vaccination will assume crucial importance," MOFSL said in a report.
"Secondly, the expectations for FY22 earnings are running high at more than 30 per cent growth in Nifty FY22E EPS. Given the rich valuations, any misses on FY22 earnings delivery may act as dampener."
At present, the market capitalisation-to-GDP is at a new year-end high of 105 per cent.
In terms of FY21, the Nifty ended last fiscal with a stellar 71 per cent returns.
"The returns look stellar due to the low base of FY20 when markets fell 26 per cent."
"The market delivered positive returns in all four quarters of FY21. FII flows in equities in FY21 were the highest ever at $37.6b while DII equity flows saw outflows after five consecutive years of inflows."
Besides, the report cited that all sectors delivered positive returns in FY21.
"Top gainers in the sectoral space were Metals, Autos, Technology, Real Estate and Private Banks while Consumer underperformed,"
"The theme of FY21 was high beta, cyclicals and value. Quality and defensive themes, the flavor of the past few years, took a breather."
Furthermore, the report pointed out that the market breadth was positive in FY21, with 49 Nifty stocks closing higher.
"Coal India was the only stock in Nifty which ended lower. Top performers were Tata Motors, Hindalco Industries, JSW Steel, Grasim Industries and Tata Steel."
"The Top-5 performers belonged to Cyclical space while the bottom five are dominated by Defensives."
In addition, it said that India recorded the highest ever FII inflows of $37.6 billion which was greater than the cumulative inflows of the last six years.
"DIIs recorded the first outflows of USD 18.4b after five years of inflows."
India recorded the highest ever FII inflows of $37.6 billion in financial year 2021, greater than the cumulative inflows of the last six years.
As per a report by Motilal Oswal Financial Services, DIIs recorded the first outflows of $18.4 billion after five years of inflows.
The Nifty ended FY21 with a stellar 71 per cent returns. The returns look stellar due to the low base of FY20 when markets fell 26 per cent. The market delivered positive returns in all four quarters of FY21.
As per the report, FII flows in equities in FY21 were the highest ever at $37.6 billion, while DII equity flows saw outflows after five consecutive years of inflows.
After the Covid-led sharp correction in March 2020, which dragged the FY20 returns, markets gradually recouped its losses in FY21, led by policy measures by governments, central banks as well as a better than expected corporate earnings performance which resulted in two consecutive quarters of earnings upgrades, a first in many years.
In fact, Nifty earnings growth of 13.5 per cent in FY21 is expected to be the best in six years, the report said.
The breadth was positive in FY21, with 49 Nifty stocks closing higher. Coal India at -7 per cent was the only stock in Nifty which ended lower. Top performers were Tata Motors (325 per cent), Hindalco Industries (242 per cent), JSW Steel (219 per cent), Grasim Industries (205 per cent), and Tata Steel (201 per cent).
The top five performers belonged to Cyclical space while the bottom five are dominated by defensives.
"As we step into FY22, two things will drive the markets from hereon, in our view. Given the recent resurgence in Covid-19 cases, the pace of vaccination will assume crucial importance. Expeditious containment of Covid19 cases and accelerated pace of vaccination will provide comfort for FY22 economic growth recovery. Secondly, the expectations for FY22 earnings are running high at 30per cent growth in Nifty FY22E EPS. Given the rich valuations, any misses on FY22 earnings delivery may act as dampener," the report said.
All sectors delivered positive returns in FY21. The Nifty Midcap 100 (102 per cent YoY) and Nifty Smallcap 100 (126 per cent YoY) outperformed the benchmark.
Top gainers in the sectoral space were Metals (151 per cent), Autos (108 per cent), Technology (103 per cent), Real Estate (90 per cent), and Private Banks (75 per cent), while Consumer under performed.
The theme of FY21 was high beta, cyclicals and value. Quality and defensive themes, the flavour of the past few years, took a breather, the report said.