Stock markets fly on wings of HDFC twins, IT

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By S Jha

New Delhi, November 11: The Foreign institutional investors pumped in a net of over Rs 3900 crores on Friday, while their domestic counterparts after days of shorting the market went long by pumping in over Rs 800 crores to send the stock markets soaring. The report that HDFC bank will have a greater weightage post-merger with HDFC in the MSCI Global index sent the twins higher by over six per cent.

The Thursday rally on NASDAQ and Dow Jones on the back of the US data which suggested cooling of inflation had set the US equity markets on a higher trajectory. The rebound on NASDAQ, which has seen rout this year, brought cheers to the IT stocks, as the whole pack of Infosys, Wipro, HCL Technology, Tech Mahindra, Mind Tree and others strongly rallied. The IT stocks in India for several months had been laggard, with most of them losing over 50 per cent from their respective peaks.

The stars of the day were the HDFC twins. HDFC Bank and HDFC have higher weightage on Sensex and Nifty, and they powered the indices on firm notes. A report by Macquarie stated that the weightage of the HDFC twins on the MSCI would go up to 13 per cent from 5.78 per cent, which will pave the way for the FIIs to further buy into the financial heavyweights.

The indices were also helped by the Reliance Industries which gained over two per cent on Friday. With the FIIs coming strongly into the Indian equity market, Nifty broke the 52 week high to gain over 320 points on Friday.

Meanwhile, the provisional figures of Direct Tax collections up to November 10 this year showed steady growth. Direct Tax collections show that gross collections are at Rs 10.54 lakh crore which is 30.69 per cent higher than the gross collections for the corresponding period of last year. Direct Tax collection, net of refunds, stands at Rs 8.71 lakh crore which is 25.71 per cent higher than the net collections for the corresponding period of last year. This collection is 61.31 per cent of the total Budget Estimates of Direct Taxes for F.Y. 2022-23.

So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 22.03 per cent while that for PIT (including STT) is 40.64 per cent. After adjustment of refunds, the net growth in CIT collections is 24.51 per cent and that in PIT collections is 28.06 per cent (PIT only) 27 per cent (PIT including STT).

Refunds amounting to Rs.1.83 lakh crore have been issued during 1st April, 2022 to 10th November, 2022, which are 61.07 per cent higher than refunds issued during the same period in the preceding year.

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