On stock market closure day, highest-ever April GST collections amid mixed auto sales data

Auto data & highest ever April GST: Even as the capital markets remained closed on Wednesday on account of Maharashtra Day, both the investors as well as market observers, continued to watch the space with bated breath for the US Fed to announce the outcome of its two-day meeting held to deliberate on the rate cut. The US Fed led by its Chairman Jerome Powell, is expected to hold a briefing Wednesday (May 1) at 11:30 pm IST.  Meanwhile, the IPO action at the capital markets, during the ongoing week is also keeping keen stock watchers glued, while auto sales data released by companies on Wednesday is expected to determine movers and shakers in the auto stocks space.  

Notably, Wednesday saw a second consecutive monthly record Goods and Services Tax (GST) mop-up at Rs 2.10 lakh crore. Besides, a cross-section of economists on Wednesday expressed optimism after government data a day earlier had revealed that infrastructure output in India saw a 5.2 per cent rise in March. The economic analysts also showed optimism over the International Monetary Fund’s (IMF) raised positive outlook to 4.5 per cent for Asia-Pacific in 2024. 
Wednesday being the first day of the month, typically saw buzzing activity in the automobile space as almost all major automotive companies released their April sales data. Here’s a roundup of the sector-specific major happenings of the day and all the buzz in the country’s economic, policy-making, and business space.

MARKETS 

Capital markets regulator SEBI on Wednesday made the nomination optional for jointly-held mutual fund accounts to promote ease of doing business. Besides, SEBI allowed fund houses to have a single fund manager to oversee commodity and foreign investments. This is expected to reduce the cost of managing the fund.
On the IPO front, after SME Emmforce Autotech stock listed with a 90 per cent premium over the IPO price earlier this week, and other SME IPOs Sai Swami Metals & Alloys,  Amkay Products IPO also opened for subscription on April 30, the focus remains on a clutch of IPOs slated to open on May 3.  

BUSINESS 

Automakers on Wednesday announced a mixed bag of auto sales data for April. Among the passenger and commercial vehicle makers Maruti Suzuki India Limited (MSIL) and Tata Motors reported higher sales of cars with 5 per cent and 11 per cent respectively. 

While major two-wheeler makers Bajaj Auto and HeroMoto Corp typically release their monthly sales data on the second day of the month, Chennai-headquartered two-wheeler and three-wheeler manufacturer TVS Motor recorded 25 per cent YoY increase in sales in April, with sales increasing from 306,224 units in April 2023 to 383,615 units in April 2024. The leading electric two-wheeler maker Ola Electric saw its market share zoom over 50 per cent with April sales. 
Notably, auto sales numbers are seen as a key indicator of private consumption as the automobile sector contributes around 7 per cent to India's economy. Auto sales fuelled by regional festivities and a robust demand for costlier sports utility vehicles (SUVs) were the key takeaway of April auto sales data. Small car sales have been subdued as the high inflation rate is making the mass market cars out of prospective car buyers' reach.

Earnings: Apart from auto sales, a clutch of earnings on Wednesday, mostly from the blue-chip Adani Group were seen. Adani Wilmar, which has a presence in edible oil and food-FMCG businesses, reported a 67.5 per cent  rise in its fourth-quarter profit on Wednesday. Adani Energy Solutions Q4 net profit fell 13 per cent to Rs 381 crore. Adani Power saw its Q4 FY24 revenue grow 29 per cent YoY to Rs 13,787 crore. Besides, the Adani Ports and Special Economic Zone (APSEZ) on Wednesday announced the revision of its credit rating to AAA by CARE Ratings.

Global buzz: The four-month jail term for Changpeng Zha, the 42-year-old Canadian resident and founder-CEO of cryptocurrency firm Binance for charges of money laundering and fraud made headlines globally.  The UK house prices unexpectedly drop for the second consecutive month. The month-on-month drop stood at 0.4 per cent, following a 0.2 per cent decrease in March.

ECONOMY

Even as a major focus for the day remained on GST collections, the commodity space remained dominated by action from the energy domain, as oil marketing companies on Wednesday, implemented a price reduction for commercial LPG gas cylinders by Rs 19 with immediate effect after which the retail sales price of a 19 kg commercial LPG cylinder in Delhi now stands at Rs 1,745.50. 

The prices of gold on Wednesday tumbled to their lowest level in almost four weeks as investors eagerly awaited the outcome of the US Federal Reserve's policy decision. Spot gold slipped by 0.1% to $2,284.44 per ounce as of 0436 GMT, marking its lowest point since April 5.

Record spree: The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at Rs 2.10 lakh crore representing a significant 12.4 per cent YoY growth.