GIFT Nifty:

The GIFT Nifty October futures contract is up 66 points, suggesting a strong start for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 5,485.70 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,214.83 crore in the Indian equity market on 18 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 83082.62 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Economy:

India's net direct tax collections jumped by 182.02% over last decade to Rs 19.60 lakh crore in FY24, from 6.95 lakh crore in FY15, following strong growth in personal income tax, the latest time series data from the Income Tax Department showed. Personal income tax collections zoomed up nearly 300% to Rs 10.45 lakh crore, from 2.65 lakh crore in FY15, outpacing corporate tax collections, which rose by 112.85% to Rs 9.11 lakh crore from Rs 4.28 lakh crore in FY15.

The contribution of direct taxes to total tax revenue climbed to 56.72% in 2023-24, the highest in 14 years. The direct tax-to-GDP ratio or the share of direct taxes in the overall economic output also jumped to over a two-decade high of 6.64%, time-series data released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance showed yesterday.

The data showed that FY24 was the second year in a row when personal income tax collection at Rs 10.45 lakh crore was higher than corporate tax collection of Rs 9.11 lakh crore. Tax buoyancy — the growth rate of taxes in relation to the economy’s nominal growth rate — grew to 2.12 in 2023-24 from 1.18 in the previous financial year. Income tax return filers increased to 8.09 crore in FY24 from 7.4 crore in FY23. In assessment year 2023-24, number of taxpayers increased to 10.41 crore from 9.37 crore.

Global Markets:

Asian stocks were mixed on Monday as traders digested China's latest loan prime rate cut and looked ahead to Japan's upcoming general election. The People's Bank of China lowered both the one-year and five-year LPRs by 25 basis points, signaling a continued effort to stimulate the economy.

Other key economic indicators this week include Tokyo's October inflation data and South Korea's preliminary third-quarter GDP figures. These releases will provide insights into the region's economic health and potential policy responses.

Global financial markets remain influenced by a complex interplay of factors. On one hand, investors are closely watching the economic prospects of the United States and China. On the other, geopolitical tensions in the Middle East and other regions continue to create uncertainty.

In the United States, major stock indices closed at record highs on Friday. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains, driven by strong earnings reports and optimism about the tech sector. Notably, Netflix's post-earnings surge contributed significantly to the Nasdaq's performance.

The broader market benchmark, the S&P 500, advanced 0.40% on Friday. The Dow Jones Industrial Average gained 0.09%, while the Nasdaq Composite closed up 0.63%. This marks the sixth consecutive week of gains for all three major indices, the longest such streak since late 2023.

Domestic Market:

Domestic equity benchmarks rebounded on Friday, snapping a three-day losing streak. Banks and metals led the gains, while IT and FMCG lagged. Despite the broader market's underperformance, positive bank results boosted investor sentiment, hinting at a promising earnings season. The S&P BSE Sensex rose 218.14 points or 0.27% to 81,224.75. The Nifty 50 index added 104.20 points or 0.42% to 24,854.05. The 50-unit index fell 1.50% in the past three sessions.