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WEEKLY MARKET REVIEW
The Indian market continued to make fresh record highs in the Budget week that ended July 26 led by positive global cues including better-than-expected US GDP data, indicating an early rate cut by the US Fed.
This week, BSE Sensex rose 728.07 points or 0.90 percent to finish at 81,332.72, while Nifty50 index added 303.9 points or 1.23 percent to end at 24,834.80. On July 26, the Nifty50 index touched a fresh record high of 24,861.15, while the BSE Sensex also went near to its record high of 81587.76.
In terms of market value, Tata Motors added the most, followed by Infosys, ITC, and Sun Pharmaceutical Industries. On the other hand, Reliance Industries, Axis Bank, and ICICI Bank lost most of their market cap.
On the sectoral front, the BSE Power, Healthcare and Auto indices rose 5 percent each, the BSE Telecom index added 4 percent and the BSE Oil & Gas index rose 3.4 percent. On the other hand, the BSE Bank index shed 2.5 percent and the Realty index fell 1.7 percent.
Considering Broader market indices, The BSE Small-cap index added 3.5 percent while the BSE Mid-cap Index added 3 percent and the BSE Large-cap Index rose 1.5 percent.
Foreign institutional investors (FIIs) turned net sellers this week as they sold equities worth Rs 4,721.26 crore, however, Domestic Institutional Investors (DII) turned net buyers as they bought equities worth Rs 8,109.78 crore.
This week, the Indian rupee lost further ground against the US dollar as it lost 6 paise to close at 83.72 on July 26 against its July 19 closing of 83.66.
ECONOMY
India has a high tax-to-GDP ratio given its per capita income: Revenue secretary
India may have a lower tax base, but its tax-to-GDP is much higher compared to its peers, Sanjay Malhotra, secretary of the Department of Revenue, ministry of finance, said at a Confederation of Indian Industry session on July 26.
“The tax-to-GDP, given the level of development, is not low. We are slightly above what our per capita income indicates,” the secretary noted.
Mineral royalty revenue jumps 32% for states during FY17 to FY22
The Supreme Court, on July 26, granted states the power to levy taxes on mineral rights, contending that royalty is a contractual consideration, opening the doors for the states to earn more revenues from mining operations.
Data from the Ministry of Mines shows that the states have already witnessed a surge in revenues from mining, as royalty revenues expanded at a compounded annual growth rate of 32 percent between FY17 and FY22.
GLOBAL MARKETS
Wall Street closes up on revival supported by inflation data, tech stocks
Wall Street’s major indexes ended higher on Friday as investors flocked back to tech megacaps that had triggered broad sell-offs earlier in the week, and inflation data boosted optimism that the Federal Reserve will soon commence cutting interest rates.
The S&P 500 gained 59.88 points, or 1.11%, at 5,459.10 points, while the Nasdaq Composite climbed 176.16 points, or 1.03%, to 17,357.88. The Dow Jones Industrial Average rose 654.27 points, or 1.64%, to 40,589.34.
Oil edges up on strong US GDP data but Asia economic woes limit gains
Oil prices were up slightly on Friday on stronger-than-expected U.S. economic data that raised investor expectations for increasing crude oil demand from the world’s largest energy consumer.
Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. U.S. West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel.
STOCKS IN NEWS
Paytm: Paytm has got approval from the government for its 500 million rupees ($5.97 million) investment in a key subsidiary, a top finance ministry official told Reuters on Friday. The approval, which was stuck for months due to the company’s link to China, will remove the main stumbling block to the unit, Paytm Payment Services, resuming normal business operations.
DLF: Realty major DLF plans to launch a nearly 37 million square feet area for sale in the medium term across various cities with a revenue potential of Rs 1.04 lakh crore as part of its strategy to encash strong demand for luxury homes. In its latest investor presentation for the April-June quarter, DLF informed about the “planned launches of Rs 1+ lakh crore (36 million square feet) of new products over the medium term”.
Tata Power: Tata Power Solar Systems Ltd (TPSSL) on Friday said it has partnered with the Bank of India (BOI) to facilitate easy financing for rooftop solar installations and the establishment of electric vehicle (EV) charging stations. The partnership is a significant milestone with Tata Power Solar becoming the first solar company to collaborate with BOI for both solar and EV Charging Station financing and strengthening its leadership as a green energy solutions provider, a statement said.
Sun Pharma: The company on Friday said the US health regulatory has approved its LEQSELVI (deuruxolitinib) drug for the treatment of adults with severe alopecia areata. The approval by the US Food and Drug Administration (USFDA) is for LEQSELVI (deuruxolitinib) 8 mg tablets, Sun Pharma said in a regulatory filing.