indian markets Archives

Stock market investors take note! 3 changes in transaction…

30 September 2024
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We take a look at the three changes that stock market investors should be aware of: (AI image)

Stock market investors take note! As Indian markets continue their upward trajectory, investors should take note of three important changes that will come into effect on October 1, 2024 potentially influencing their trading strategies and profitability.
We take a look at the three changes that stock market investors should be aware of:

New NSE, BSE transaction charges from October 1, 2024

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), India’s leading stock exchanges, have announced changes to their transaction fees for cash, futures, and options trading.These revisions, effective from October 1, are in response to a mandate from the Securities and Exchange Board of India (Sebi) requiring a standardized flat fee structure for all members of market infrastructure institutions.
BSE has adjusted the transaction fees for Sensex and Bankex options contracts in the equity derivatives segment to Rs 3,250 per crore of premium turnover. However, the transaction charges for other contracts in the equity derivatives segment remain unchanged.
For Sensex 50 options and stock options, BSE charges a transaction fee of Rs 500 per crore of premium turnover. There is no transaction fee applicable for index and stock futures.
As per NSE’s announcement, the transaction fee for the cash market will be set at Rs 2.97 per lakh of traded value. Equity futures will attract a fee of Rs 1.73 per lakh of traded value, while equity options will have a fee of Rs 35.03 per lakh of premium value.
In the currency derivatives segment, futures will be subject to a fee of Rs 0.35 per lakh of traded value. Options, including interest rate options, will incur a fee of Rs 31.10 per lakh of premium value.

Securities Transaction Tax Hiked

Another significant change is the increase in the securities transaction tax (STT) on Futures & Options (F&O) trading, as announced by Finance Minister Sitharaman earlier this year. Effective from October 1, trading in futures will attract an STT of 0.02%, up from 0.0125%, and options trading will be taxed at 0.1%.
This hike in STT was introduced as a disincentive for investors following a substantial increase in retail derivative trading. Analysts suggest that the increased STT may impact market volumes and depth, potentially affecting the revenues of exchanges and Sebi.

Changes in buyback taxation

Furthermore, the taxation rules governing share buybacks have been revamped. From October 1, income from share buybacks will be treated similarly to dividends and taxed in the hands of shareholders according to their applicable income tax slabs.
Share buybacks, a process where a company repurchases its own shares from shareholders, have been considered a tax-efficient method of returning cash to investors. The new changes aim to shift the tax burden from corporates to shareholders, allowing companies to allocate funds for other purposes.

Science & Environment

Foreign investors infuse Rs 15,420 crore in Indian markets…

20 July 2024
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NEW DELHI: The foreign portfolio investors have infused Rs 15,420 crore so far this week in the Indian equity market, according to the data by National Securities Depository.
The net investment by the foreign portfolio investors (FPI) surged to Rs 30,772 crore so far in July indicating the good buying by the foreign investors in the Indian markets.
The foreign investors have so far bought equities worth of Rs 1,30,138 crore this year.
“FPI flows are expected to remain volatile, this week the markets were strong, led by strong earnings and commentary from the large-cap. This week the markets of India, Brazil, Indonesia, Malaysia, Philippines, and South Korea witnessed inflows, while the markets of Taiwan, Thailand and Vietnam witnessed outflows” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.
Internationally the foreign investors this week have injected around $ 585 million in Brazil, $ 300 million in Indonesia, $ 324 million in Malaysia and $ 2085 million in South Korea. While Taiwan witnessed an outflow of $ 5325 mn, Vietnam witnessed a selling of $ 278 million of foreign investment this week.
According to market experts, foreign investors are investing in Indian markets amid a weakening in dollar and bond yields, and if this trend continues foreign investment will continue.
“During the fortnight ending 15th July FPIs were buyers in autos, capital goods, healthcare, IT, telecom, and oil and gas. A notable trend was the lack of buying in financial services, which partly explains the poor performance of financial services in July so far. If the recent trend of weakness in dollar and bond yields persists, FPIs are likely to continue their buying in the market,” said V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.
Foreign Institutional investors were sellers in January, April, and May, cumulatively selling equities worth around Rs 60,000 crores. However, they were buyers in February, March, and June, with cumulative purchases amounting to Rs 63,200 crores.

Science & Environment

Sensex surges 500 points, Nifty nears 19,800 on global…

11 October 2023
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Indian equity indices continued their upward trajectory for the second consecutive day, mirroring global market trends. Easing concerns about US interest rates, driven by dovish statements from key Federal Reserve officials, and stable oil prices, contributed to this positive momentum. Buying activity spanned across all sectors, according to an ET report.
The BSE Sensex surged by 500 points, reaching 66,538, while the Nifty50 traded at 19,827, marking a gain of 136 points around 10.50 am.
Among Sensex stocks, Axis Bank, ICICI Bank, L&T, Wipro, and Tata Motors all opened with gains, with Power Grid Corporation opening with losses.
Bank of Baroda shares, however, faced a nearly 4% decline after the Reserve Bank of India (RBI) prohibited the bank from adding customers to its mobile app.
In terms of sectors, Nifty Auto registered a 0.7% increase, and Nifty Media saw a 0.9% surge. Banks, financial institutions, IT, FMCG, metal, and pharma sectors all experienced gains. In the broader market, Nifty Midcap100 showed a gain of 0.93%, while Smallcap100 recorded an increase of over 1%.
Experts’ Insights
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the resilience of global markets amid the West Asian crisis. According to him, the key factors supporting the markets include the strength of the US economy, declining US bond yields, and the hope that the Israel-Hamas conflict will remain localized, thereby not affecting crude oil prices. Vijayakumar advised investors to remain cautious, considering the potential for the situation to worsen.
Deepak Jasani, Head of Retail Research at HDFC Securities, indicated that Nifty may progress towards 19,766 and later 19,878, with 19,589 serving as near-term support.

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Global Market Trends
Asian markets extended their rally, driven by the belief that the Federal Reserve has concluded its interest rate hike cycle. Additionally, reports of potential economic stimulus in China added to the optimism. Tokyo, Sydney, Seoul, Taipei, Manila, and Jakarta saw gains in early Asian trade.
On Wall Street, indices closed higher, marking their third consecutive day of gains. Dovish comments from US Federal Reserve officials contributed to lower Treasury yields, while market observers vigilantly monitored developments in the Middle East. The Dow Jones Industrial Average increased by 0.4%, the S&P 500 rose by 0.52%, and the Nasdaq Composite surged by 0.58%.
Q2 Earnings and Investment Trends
Investors awaited the September quarter earnings of Tata Consultancy Services, a leading IT company, and Delta Corp. Other IT service providers, including HCL Tech and Infosys, are set to release their results on Thursday.
Foreign institutional investors (FIIs) continued their selling streak for the 15th consecutive session on Tuesday, selling Indian shares worth a net of Rs 1,005 crore. In contrast, domestic institutional investors (DIIs) purchased shares amounting to Rs 1,963 crore.
Oil and Currency Market
Oil prices saw a slight increase as concerns about supply disruptions due to Middle East turmoil persisted. Brent crude rose by 26 cents (0.3%) to reach $87.91 a barrel, while US West Texas Intermediate (WTI) crude increased by 17 cents (0.2%) to $86.14 a barrel.
The Indian rupee rose by 3 paise to reach $83.22 against the US dollar in early trade. The dollar index, measuring the greenback against a basket of major world currencies, declined by 0.04% to 105.78.

Science & Environment

Sensex, Nifty sink on US credit downgrade, weak China…

2 August 2023
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NEW DELHI: Both Indian indices, sensex and Nifty, fell sharply on Wednesday, tracking weak global sentiments.

The BSE benchmark sensex slipped nearly 900 points in indraday trade while Nifty fell nearly 270 points.
Fitch’s downgrade of US credit rating from AAA+ to AA+, weak economic data from eurozone and China were main reasons behind the sharp decline in India stock markets.

“There has clearly been some exhaustion in the market,” said Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities, told Reuters. “At this level, the index has become a little top-heavy. Overall, the Nifty 50 will struggle as the risk-reward is favourable in only selective pockets.”
Nearly two weeks ago, Indian stock indices surged to new highs, with the benchmark sensex surpassing the 67,000-mark for the first time.
Several factors contributed to this bullish trend, including a consistent inflow of foreign portfolio funds (net buyers in Indian stock markets for five consecutive months), a positive economic outlook, strong global markets, and a relative moderation in inflation.
However, in recent sessions, both indices have experienced a gradual decline, partially due to investors engaging in profit booking. Analysts have flagged concerns over high stock valuations, which led to this steady decrease in stock prices.
(With inputs from agencies)

Tag: <span>indian markets</span>

Stock market investors take note! 3 changes in transaction…

New NSE, BSE transaction charges from October 1, 2024

Securities Transaction Tax Hiked

Changes in buyback taxation

Foreign investors infuse Rs 15,420 crore in Indian markets…

Sensex surges 500 points, Nifty nears 19,800 on global…

Sensex, Nifty sink on US credit downgrade, weak China…