Key equity barometers trade with strong gains; Zomato declines post Rs 401 crore tax notice

The key equity indices traded with strong gains in morning trade. The Nifty traded above the 21,700 mark. Shares across sectors advanced, with metals, banks and financials leading the charge.

At 09:26 IST, the barometer index, the S&P BSE Sensex, was up 288.50 points or 0.40% to 72,326.93. The Nifty 50 index advanced 79.65 points or 0.37% to 21,734.40.

The Nifty 50 index and the Bank Nifty index have hit record high of 21,744.25 and 48,589.45, respectively.

In the broader market, the S&P BSE Mid-Cap index added 0.30% and the S&P BSE Small-Cap index gained 0.45%.

The market breadth was strong. On the BSE, 2073 shares rose and 773 shares fell. A total of 82 shares were unchanged.

Stocks in Spotlight:

Canara Bank rose 2.83%. The bank is in the process of listing its mutual fund subsidiary Canara Robeco Asset Management Company, on the stock exchanges by way of initial public offer (IPO).

Sula Vineyards added 1.84%. The company said its wine tourism has achieved new records over Christmas weekend. On December 24th, over 5,000 visitors entered the gates of Sula, a first for a single day. From December 23rd to 25th, visitor numbers also set single-day and three-day records, totaling over 12,000 visitors at Sula�s Nashik and Bengaluru wine tourism facilities.

Zomato fell 1.81%. The company received a show cause notice from the Directorate General of GST Intelligence, demanding an alleged tax liability of Rs 401,70,14,706/- for the period from 29 October 2019 to 31 March 2022 related to delivery charges. Zomato believes it is not liable for the tax as the charges are collected on behalf of delivery partners and will respond to the notice with support from legal and tax advisors. Despite no order being passed, the company has voluntarily disclosed the matter due to the potential impact of the alleged tax demand.

KPI Green Energy jumped 4.44%. The company`s board will consider bonus share issue on 30 December 2023.

Global Markets:

In Asian markets, stocks advanced due to expectations of more aggressive rate cuts.

On Wednesday, US stocks closed higher, with the S&P 500 inching up to 4,781.58 and the Nasdaq Composite adding to 15,099.18. The Dow Jones Industrial Average also rose by 111.19 points to close at 37,656.52.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell 0.11% to 7.197 as compared with previous close 7.205.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.2650, compared with its close of 83.3475 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement added 0.14% to Rs 63,765.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.14% to 100.84.

The United States 10-year bond yield advanced 0.43% to 3.804.

In the commodities market, Brent crude for February 2024 settlement lost 6 cent or 0.08% to $79.48 a barrel.

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