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By Alpha Research
Jan 30, 2024
In the week gone by, Nifty registered a new all-time high of 22124 in Tuesday’s session but it then witnessed a sharp correction where the index sneaked below 21300 in just a couple of days. The index recovered marginally towards the end of the week and it ended just below 21600 with a weekly loss of about one and a half percent.
In the last week, we have not seen any broader market sell-off as the midcaps have outperformed. The PSU stocks too were buzzing and continued to outperform inspite of volatility in the benchmark indices.
Losses were extended due to profit booking by the investors following the positive data of U.S. economy that reduced the optimism of rate cut by U.S. Federal Reserve. Sentiments were further dampened following rise in U.S. Treasury yields that attracted the foreign portfolio investors away from domestic markets.
However, positive earnings from U.S. tech companies along with the People’s Bank of China's decision to reduce reserve ratio by 50 bps w.e.f. Feb 5, 2024 to support growth and financial liquidity, restricted the losses.
Bond yields remained steady during the week under review as market participants awaited for the sale of debt by the central government along with central government’s budget for further cues.
Data from Reserve Bank of India showed that reserve money grew 5.0% on a yearly basis for the week ended Jan 19, 2024 compared to an increase of 12.3% in the same period of the previous year. The currency in circulation grew 4.0% on a yearly basis for the week ended Jan 19, 2024 compared to an increase of 8.0% in the same period of the previous year.
The Central Board of Direct Taxes (CBDT), the number of Income Tax Returns (ITRs) filed surged 104.91% to 7.78 crore in FY23 as compared to 3.8 crore in FY14.
India’s GDP's direct tax share reached a 15-year high of 6.11% during FY23. However, the economic growth at current prices could not result in as high a rise in direct tax collections during the reported period as witnessed during FY22.
Best Regards,
Alpha Research Team
