Morning Update :–Coal India, Tata Motors, Tata Consumer, Bharti Airtel, and Nestle India were among the major gainers on the Nifty, while Eicher Motors, UltraTech Cement, Axis Bank, Infosys, and Kotak Mahindra Bank were among the major losers.
Sensex – Fall -165 Points at 72,106
Nifty 50 – Fall -28 Points at 21,713
Indian Market
FII AND DII
| FII Sold | 855.80 Cr |
| DII Bought | 410.46 Cr |
Indian Market News
- Asian markets are trading lower; the Hang Seng is down 0.5%.
- India raises crude oil windfall tax
- The dollar begins 2024 steadily, and the focus shifts to statistics.
- Gold starts 2024 on a high note due to US Fed rate-cut hopes.
- In December, GST collections increased 10% year on year to Rs 1.65 lakh crore.
- China’s December manufacturing contraction worsens, and more support is on the way.
- TVS Motor reported December sales of 3.01 lakh units, a 25% increase year on year.
- Godrej Properties has purchased a 4-acre plot of land in Bengaluru.
- AIK Pipes and Polymers will make their BSE SME debut on January 2nd.
- Nestle India receives a tax demand order for Rs 46.4 crore.
- Eicher Motors’ total sales fell 7% in December, while exports fell 29%. YoY
- The Life Insurance Corporation of India has received a GST demand order of Rs 806.3 crore.
Global Markets updates
GIFT Nifty
With a gain of 20 points, the GIFT Nifty suggests a slightly good start for the overall index. After peaking at 22,022 points, GIFT Nifty futures were trading at 21,865 points.
US Markets
• Stock futures remain flat as the market prepares for the new year.
• The S&P 500 rallied 24 percent in 2023, marking its best win streak since 2004.
• Risk assets experienced a relief rally due to economic resilience and cooled inflation.
• The Federal Reserve ended rate hikes, a regional banking crisis, and wars in Ukraine and the Middle East.
• Technology shares led the 2023 advance, with Apple, Microsoft, and Nvidia leading the way.
• The Nasdaq Composite ended the year up 43.4%, marking its best year since 2020.
European Markets
• European stocks ended the day in the green, marking a positive end to 2023.
• The Stoxx 600 index provisionally ended 2023 up 12.64 percent, following a 12.9% fall in 2022.
• London markets closed early, with the FTSE 100 in the green.
• Spanish pharmaceutical group Grifols was the biggest stock mover, climbing around 8.4% after selling a 20% stake in Shanghai RAAS to Haier.
• Germany’s DAX rose nearly 20% over 2023, while France’s CAC 40 and the UK’s FTSE 100 gained 16.4% and 3.64 percent, respectively.
Asian Markets
• China’s manufacturing PMI contracted further in December 2023, indicating a need for more policy support to revive the economy.
• Japan assessed the damage from a powerful earthquake on New Year’s Day, closing markets until January 4.
• Japan’s Nikkei 225 ended 2023 with over 28% gains, making it Asia’s top-performing market.
• S&P Global will conduct private factory activity surveys for China, Australia, and South Korea, and Singapore’s fourth-quarter GDP readings.
• Australia’s S&P/ASX 200 rose 0.4%, while futures for Hong Kong’s Hang Seng index stood at 17,160.
Oil Prices
Fears that the market is oversupplied from record output outside of OPEC have led to a pessimistic mood in US crude oil, which saw the commodity conclude the year more than 10% down. The West Texas Intermediate contract for February ended the day at $71.65 per barrel, down 12 cents, or 0.17 percent. March’s Brent contract settled at $77.04, down 11 cents, or 0.14 percent.
Despite continued geopolitical danger in the Middle East because of the terrible war in Gaza, US crude and the global benchmark saw their first yearly fall since 2020. For the year, WTI is down 10.73 percent and Brent is down 10.32 percent.
Dollar Index
The dollar’s value stayed around Rs 82.23, while the Dollar index saw a 0.06 percent increase in futures trading at 101.06.
Gold Prices
With levels safely above $2,000 per ounce, gold prices maintained stable on Friday, marking its best year since 2020 and bolstered by expectations that the US Federal Reserve may lower interest rates as early as March.
The spot price of gold remained same from the previous session at $2,062.59 per ounce. US gold futures finished the year 13.45 percent higher, with a 0.6% decrease at $2,071.80, marking the first positive year in three.
News Updates
ITR Filing: 8.18 crore returns were filed in AY 2023–2024, a 9% YoY increase.
As of December 31, 2023, the Ministry of Finance said on January 1 that 8.18 crore Income Tax Returns (ITRs) have been filed for assessment year (AY) 2023–2024, marking a “record high”.
When compared to the previous assessment year, when a total of 7.51 crore ITRs were filed, the number of ITRs filed has increased by 9%. According to a press release, 1.60 crore audit reports and other forms were filed in total during AY2023–24, compared to 1.43 crore during the same period in AY2022-23.
RBI enhances the tier 3, tier 4, and urban cooperative banks’ bulk deposit limitations.
On January 1, the Reserve Bank of India (RBI) announced that it had chosen to boost the maximum amount of bulk deposits that scheduled primary (urban) co-ops in tier 3 and tier 4 cities can accept to Rs 1 crore and above.
“On a review, it has been decided to enhance the bulk deposit limit for Scheduled Primary (Urban) Co-operative Banks, in Tier 3 and 4, to Rs 1 crore and above,” the RBI noted in a press release. The RBI announced that “Rs 15 lakh and above” would be the bulk deposit limits for urban cooperative banks that are not located in tier 3 or tier 4 cities.
December showed a 10% YoY increase in GST receipts to Rs 1.65 lakh crore.
The Ministry of Finance revealed on January 1 that the government’s Goods and Services Tax (GST) collections climbed by 10% year over year to Rs 1.65 lakh crore in the final month of 2023.
The December GST receipts, at Rs 1.65 lakh crore, are 2% less than the Rs 1.68 lakh crore collected in November. The monthly GST collection has crossed Rs 1.5 lakh crore for the eleventh consecutive month. According to the latest recent GST data, Rs 1.66 lakh crore was collected on average each month in 2023–2024.
Over time, monthly GST collections have climbed. After the pandemic struck in 2020–21, collections quickly jumped from an average of less than Rs 1 lakh crore per month in 2017–18, to an average of Rs 1.51 lakh crore in 2022–23
December yield on short-term debt instruments increases by 15-20 basis points due to low liquidity.
Due to the banking system’s restricted liquidity in December, the yield on short-term debt instruments including commercial papers and certificates of deposit climbed by 15 to 20 basis points (bps).
One tenth of a percentage point is equivalent to one basis point. According to data supplied by Moneycontrol, as of December 29, the yield on commercial papers issued by manufacturing businesses climbed by 10 bps, while those issued by non-banking finance companies (NBFC) jumped by 20 bps. In a similar vein, certificates of deposit yields climbed by 10 basis points.
A CD is a form of short-term debt instrument that banks issue to raise money. Contrarily, a CP is an unsecured money market instrument that corporate borrowers issue as a promissory note in order to diversify their short-term borrowing sources and give investors another option.
The wearable AI market is predicted to expand to a size of over $250 billion by 2032.
A technical corporation helmed by a star-studded cast of executives and board members introduced a wearable in November 2023 that instantly became the talk of the town.
An early peek at a world without cellphones came from the company Humane and its Pin, a tiny device worn over clothes. The tiny gadget, which runs on OpenAI’s ChatGPT, projects monochromatic text and images onto a user’s hand in the style of a hologram using a laser projection system.
With the exception of its hardware, Pin doesn’t have a screen and communicates with the user largely through voice instructions. Even though the gadget is still young, it has exciting possibilities for natural computing in the future. This prompts the question: Is there a market for wearables with AI capabilities?
In 2023, automotive sales hit 40 lakh, gaining 4.4% in traditionally slow December.
According to industry sources, the passenger vehicle (PV) business saw its wholesale numbers jump 4.4 percent to 2,87,904 units in December year-over-year (YoY) basis, despite December being a month when Original Equipment Manufacturers (OEMs) often go for inventory clearances and limited dispatches to dealers. There were 2,75,653 PV dispatches in total in December 2022.
30,90,026 units were sold altogether from April to December of this fiscal year, a 7.6% increase over 28,71,695 units during the same period prior year. Sales of 41,08,000 units were made in total in 2023, an increase of 8.3 percent from 37,92,000 units in 2022. Industry analysts predict that the domestic PV market reached 40 lakh sales in a calendar year for the first time.
Stocks in news
Asian Paints: Life Insurance Corporation of India now owns 48,652 equity shares in Asian Paints, up from 4.995 percent to 5.000 percent of the company’s paid-up capital.
Eicher Motors: Compared to 68,400 motorcycles sold in December 2022, Royal Enfield sold 63,387 motorcycles in December 2023, a 7% decrease. Motorcycle exports fell by 29% to 6,096 units from 8,579 units over the same time period.
Life Insurance Corporation of India: The Deputy Commissioner of State Tax, Mumbai, has issued a demand notice for the Corporation to pay Rs 806.3 crore in GST, interest, and penalties for the state of Maharashtra. For FY2017–18, the demand order/penalty notice includes a Rs. 365 crore GST and a Rs. 404.77 crore penalty.
Power Grid Corporation of India: Power Grid was named the winning bidder to construct an interstate transmission system under Phase-III Part D – Phase I, on a build, own operate and transfer (BOOT) basis, for the evacuation of power from the Rajasthan REZ (20GW).
TVS Motor Company: Compared to 2,42,012 units sold during the same period in 2022, the two-and three-wheeler company posted monthly sales of 3,01,898 units in December 2023, indicating a growth of 25%. By December 2023, its total shipments had increased to 85,391 units, an 8 percent annual growth.
Kernex Microsystems (India): South Central Railway has placed an order for comprehensive signalling and telecommunication works for the deployment of an automatic block signalling system for Rs 109.46 crore with the joint venture company, VRRC-KERNEX-CE-RVR JV.
G R Infraprojects: After placing first in the tariff-based competitive bidding process (TBCB), the company was awarded a Letter of Intent for a “transmission system for evacuation of power from RE projects in Rajgarh (1000 MW) SEZ in Madhya Pradesh- Phase II, with annual transmission charges of Rs 41.9 crore.”
Bharti Airtel: Bharti Airtel Services, a subsidiary, has signed into an agreement to purchase 49,45,239 equity shares, representing a 97.1 percent ownership in Beetel Teletech, another Bharti Group firm, as part of the group restructuring. Additionally, Beetel Teletech owns a 49 percent share in a joint venture that consists of two manufacturing sites that create networking and telecom devices, including those that meet the requirements of the production-linked incentive (PLI) programme.
Nestle India: The FMCG company has received an order from the Additional Commissioner, Office of the Principal Commissioner, Central Goods & Services Tax & Central Excise Commissionerate, Chandigarh, demanding payment of tax totaling Rs 46.4 crore under the CGST/SGST Act, applicable interest, and a penalty amounting to Rs 4.65 crore.
SJVN: The request of the Company and the Ministry of Power to establish four joint venture (JV) firms for the development of hydroelectric and renewable projects in India and Nepal has been approved by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India. In order to create 5,000 MW of RE projects, the business would establish a joint venture with Maharashtra State Power Generation business. To carry out the development of the 1,878 MW Oju hydroelectric project in Arunachal Pradesh, the Government of Arunachal Pradesh and Navyuga Engineering Company will enter into another joint venture. The third joint venture (JV) will see the corporation working with GMR Energy and the Nepal Electricity Authority to implement the 900 MW Upper Karnali Hydroelectric Project in Nepal. Additionally, to develop 1,000 MW of RE projects in Assam, subsidiary SJVN Green Energy would partner with Assam Power Development Company in a joint venture.
Coal India: India’s coal production climbed by 8.2 percent year over year to 71.9 million metric tonnes in December 2023. From April to December of the same year, the production jumped by 11% to 531.9 million metric tonnes. In December 2023, the offtake increased by 6.1 percent year over year to 66.6 million metric tonnes; in comparison, the offtake for the nine months that ended in December 2023 increased by 8.7 percent to 552 million metric tonnes in comparison to the same time the previous year.
UltraTech Cement: The largest cement business in the nation, UltraTech Cement, reported a 6% YoY (2 percent QoQ) increase in overall sales volume at 27.32 million metric tonnes. Sales volume in India increased by 5% YoY (2 percent QoQ) to 26.06 million metric tonnes.
APL Apollo Tubes: The structural steel tube company reported sales of 6,03,659 metric tonnes in Q3 FY24, which is 0.2 percent less than Q3 FY23’s sales of 6,05,049 metric tonnes and 10.5 percent less than Q2 FY24’s sales of 6,74,761 metric tonnes. A QoQ fall in sales volume was attributed to channel de-stocking in Q3 FY24 in expectation of a correction in steel prices.
Sheela Foam: The Joint Commissioner, Central GST Commissionerate, Noida, issued a revised decision based on the company’s representation, dropping most requests and confirming a demand of Rs 3,25,100 with interest and a penalty of Rs 32,510. The Commissioner of GST Intelligence sent the company a Show Cause Cum Demand Notice earlier in October, claiming a tax demand of Rs 20.26 crore, along with an equal penalty of Rs 20.26 crore and applicable interest on the same demand.
Zydus Wellness: The Office of Commissioner of GST and Central Excise, Maharashtra, has sent an order to Heinz India, which amalgamated with Zydus Wellness Products, a fully owned subsidiary firm, accusing the latter of underpaying taxes, interest, and penalties totaling Rs 19.03 crore for the fiscal years 2017–18 through 2019–20.
South Indian Bank: For the quarter that ended in December of FY24, the institution reported an increase in gross advances of 10.83 percent year over year to Rs 77,713 crore. During the same time frame, CASA climbed by 2.8 percent YoY to Rs 31,529 crore, while deposits jumped by 9.37 percent YoY to Rs 99,164 crore.
Dhanlaxmi Bank: In Q3 FY24, gross advances increased by 11.9 percent to Rs 10,347 crore, while total deposits increased by 10.6 percent YoY to Rs 14,310 crore. During the quarter, CASA increased by 5.69 percent YoY to Rs 4,459 crore, while the gold loan category saw a YoY gain of 28.36 percent to Rs 2,675 crore.
Veerhealth Care: One of the leading institutional supplier businesses in the US has given the company a preliminary sample export order worth $50,000 (about Rs 41.50 lakh). The company will be entering the USA market, which will open up other markets worldwide for the manufacturing and supply of oral care goods. Previously, it has been manufacturing and exporting various types of oral care products to East African countries.
JTL Industries: This steel tube manufacturer saw its quarterly sales volume reach a record high of 1,00,905 MT in Q3 FY24, up 76.05 percent from Q3 FY23. The company attributes this strong growth to the healthy demand for its structural steel tubes and pipes, which are used in the infrastructure and industrial sectors in both domestic and foreign markets.
Religare Enterprises:The Principal Commissioner, Central Goods and Services Tax and Central Excise Commissionerate, Chandigarh, has issued an order to Religare Enterprises: Subsidiary Care Health Insurance (CHIL) under the Central Goods and Services Tax Act, requesting payment of Rs 35.92 crore in taxes, along with a penalty of Rs 3.59 crore and applicable interest.
Alembic Pharmaceuticals: During the quarter that ended in December 2023, the US Food and Drug Administration (USFDA) approved a number of products that the company produces, including Osimertinib tablets, Dapsone gel, Carmustine for injection, Fluorouracil injection, and Acyclovir cream. Alembic has received 196 ANDA approvals in total from the USFDA—170 final approvals and 26 preliminary clearances.
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