The government’s direct tax-to-GDP ratio touched a 23-year high of 6.11 per cent in the 2022-23 fiscal year, official data from the Central Board of Direct Taxes revealed on Tuesday.
The data showed that the government’s direct tax collections increased 17.8 per cent to Rs 16.6 trillion in FY23, on a year-on-year (YoY) basis, while corporate tax collections during the period rose 16 per cent to Rs 8.26 trillion, and income tax collections gained 19.6 per cent to touch Rs 8.33 trillion, reported Financial Express.
The stock markets displayed volatility on Wednesday morning and reversed to attempt a recovery rally from the last trading session’s losses. As of 10:20 AM, the S&P BSE Sensex climbed over 400 points to cross the 70,500 mark and was trading at 70,782.65, while the NSE Nifty50 gained over 100 points to trade above 21,300 at 21,369.70.
The Indian rupee opened on a flat note and appreciated 1 paisa to touch 83.14 against the US dollar in early trade on Wednesday, owing to a muted trend in domestic equities. Forex traders noted that the domestic unit is trading with a slight negative bias due to selling pressure from foreign investors. In initial trade in the morning, the Indian currency hit 83.16 against the greenback. In the last trading session on Tuesday, the domestic unit settled at 83.15 against the US dollar.
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The stock markets exhibited volatility on Wednesday. In early trade, the BSE Sensex fell 316.75 points to inch closer to the 70,000 mark and touched 70,053.80, while the NSE Nifty50 dipped over 50 points to fall below the 21,200 mark and reached 21,187.65 in the morning. However, after markets opened, they attempted a recovery and the two key equity benchmarks moved in an upward trend to manage the losses.
As of 9:50 AM, the Sensex was trading higher by over 200 points at 70,575.04, while the Nifty50 inched up nearly 70 points to stand at 21,309.60.
In the last trading session on Tuesday, the stock markets plunged to a one-month low after reversing their rally in the morning. The markets failed to recover and engaged in a free fall owing to drops in financial and FMCG stocks. As such, the S&P BSE Sensex crashed by over 1,000 points to settle at 70,371, while the NSE Nifty50 declined by 333 points to close at 21,239.
“Global sentiments turned cautious after Fitch Group statement that South Asian economies would be most affected, amid rising hostilities in the Red Sea due to Houthi attacks and India’s economic forecast faces a significant risk on account of a prolonged spell of disruptions,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Official data from the Reserve Bank of India revealed on Tuesday that the net foreign direct investment (FDI) in India registered a decline in the April-November 2023 period, owing to the fall in global inflows and a rise in the repatriation of equity capital.
The data showed that the net FDI during the period under review dipped to $13.54 billion, against $19.76 billion on a year-on-year (YoY) basis. Further, during the first eight months of the ongoing fiscal year, FDI in India remained at $21.39 billion, however, FDI by India touched $7.85 billion. Comparatively, FDI in India stood at $29.11 billion, while FDI by the nation touched $9.35 billion in the corresponding period a year earlier.