By earn 
Morning Alert..
*Markets extend losses as investors digest higher taxes on equity trades*
Benchmarks indices extended the losses for the fourth consecutive day on Wednesday after the government announced a hike in securities transaction tax and short term capital gains tax in the Budget. The Sensex closed at 80,149, with a decline of 280 points, or 0.4 per cent. The Nifty fell 66 points, or 0.3 per cent, to end the session at 24,414. The Sensex and the Nifty hit intra-day lows of 79,751 and 24,307, respectively. FPIs sold shares worth Rs 5,131 crore on Wednesday, while domestic institutions stepped up buying, infusing Rs 3,137 crore into the cash market. The government has announced a steep increase in securities transaction tax (STT) in the derivatives segment to curb speculative trading activity. It has also raised the short-term and long-term capital gains taxes on equities. “We remain cautious on the markets. A good Budget is in the price and unlikely to move the needle significantly. On the other hand, we are looking at a tepid earnings season, as topline growth remains moderate and margin tailwinds are petering out. Also, rate cuts are at least 1-2 quarters away and valuations are stretched at 21.4x one-year forward P/E of Nifty, with no imminent upgrades,” said Seshadri Sen, head of research and strategist, Emkay Global Financial Services.
*Govt notifies governing council to set up framework for Data Innovation Lab*
The Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday notified the governing council to set up the framework for the Data Innovation Lab. The council, under the chairmanship of the MoSPI secretary, will approve the annual action plan of the DI Lab. The council will also have representation from NITI Aayog, the Indian Statistical Institute, and the Department of Science & Technology (DST). Earlier on Tuesday, the ministry set up the DI Lab to promote innovation, adoption of information technology in the field of official statistics including survey-related methodology and address the challenges being faced by the National Statistical System (NSS). “DI Lab will create an ecosystem for experimentation, offering new ideas and their proof-of-concept through wider participation of individuals such as entrepreneurs/researchers from national & international organisations, and other organisations including start-ups and academic-research organisations,” the notification said.
* Global market action*
Dow Jones – Up by 0.17% or 67.75 points
FTSE – Down by 0.17% or 13.68 points
CAC – Down by 1.12% or 84.90 points
DAX – Down by 0.92% or 170.24 points
Gift Nifty – Down by 0.94% or 229.00 points
*FII/DII activities*
FII – Sold 5130.90 Cr worth of shares
DII – Bought 3137.30 Cr worth of shares.
