AMC stocks decline, J Kumar Infra bags new order & more

Nifty50: 16,945 ▼ 131 (-0.7%)
Sensex: 57,527 ▼ 398 (-0.6%)

Dear reader,

It has 11,441 pieces of diamonds and is set in 18-carat white gold.

No, it's not jewellery. We are telling you about the world's most valuable guitar called the 'Eden of Coronet'.

It was created by a Hong Kong-based jewellery designer in 2015. And, this exquisite instrument is currently valued at a mind-boggling $2 million. Two images of this guitar were tweeted by Guinness World Records last week.

Let us tell you whether the market hit the right note or not.

• The markets ended lower in a volatile market.
• Out of the Nifty50 stocks, 42 stocks declined.
• Weak global cues dented the sentiments.

All the Nifty sectoral indices ended in the red with Media (-2.3%) and Realty (-2.3%) being the top losers.

What’s trending

⭐ AMC stocks decline 

Shares of mutual fund companies – HDFC AMC, UTI AMC and Aditya Birla Sun Life AMC – declined in the range of 4% to 5% intraday. This comes after the tax benefits on debt mutual funds were removed. More on this later.  

⭐ Zydus Lifesciences gets USFDA nod

The pharma major (-0.4%) has received two drug approvals from the USFDA. The cumulative annual sales of these drugs stood at $198.6 million in the US markets. The newly approved drugs will be manufactured at the company’s Ahmedabad facility.

⭐ J Kumar Infra bags new order

The infrastructure company (-1.0%) has secured a contract worth ₹249 crore in Bangalore. This project work involves the construction of a metro depot. The project is part of a joint venture in which J Kumar Infra’s share will be 55% (worth ₹137 crore). Meanwhile, the company received ₹1,670 crore worth of orders in the first nine months of FY23.   

⭐ Oil tanks due to oversupply fears 

Oil prices declined nearly 4% intraday. This comes after the US energy minister said the US may not refill its depleting strategic petroleum reserve. This could lead to an oversupply of crude oil in the markets. Last year, the US government had announced plans to buy oil for its reserves.

In Focus

Key takeaways from the finance bill

The finance bill was passed in the Lok Sabha with several amendments today. These amendments will have an impact on the various segments of the financial markets – from debt to futures and options (F&O).  

Let’s decode some of the key takeaways from the finance bill: 

Debt MFs: No tax benefits

The returns or gains on debt mutual funds will now be taxed according to an individual’s income tax slab. This means investors can no longer avail indexation benefits on debt funds. ICYDK indexation takes into account the impact of inflation and ensures that you are taxed accordingly. This would help investors in reducing their tax outgo. But, the indexation benefit has been removed. 

From 1 April 2023, debt funds will be taxed like fixed deposits. However, any investment made before 31 March 2023 will still benefit from indexation.

F&O: Pay higher STT

Beside this, trading in F&O will attract higher taxes from April 2023. The government has hiked the Securities and Transactions tax (STT) by 25% on sale of options and 25% on sale of F&O. 

In percentage terms, 0.0125% (vs 0.01% earlier) STT will be levied on sale of futures. In case of options, STT has been hiked to 0.0625% (vs 0.05% earlier).

Tax on card payments abroad

Also, payments for foreign tours through credit cards will be bought under the Liberalised Remittance Scheme (LRS). The RBI has been requested to look into this. The finance minister highlighted that such payments are not captured under LRS and have been escaping tax collection at source.

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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