CBIC chair says will implement 28% GST regime after state laws amended, review in 6 months

The Central Board of Indirect Taxes and Customs (CBIC) chairman, Sanjay Kumar Agarwal, has stated that the goods and services tax (GST) notices issued to online gaming companies are in accordance with legal provisions and will not be immediately reviewed. The government is prepared to implement the 28% GST regime for online gaming, horse racing, and casinos once all states amend their laws. The CBIC will review the tax regime in six months. Many online gaming companies have received tax demand notices running into thousands of crores, with a total tax liability estimated at around ₹55,000 crore.

The F&O contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%.

The net short position of FIIs increased from Rs 7019 crore on Tuesday to Rs 20848 crore on Wednesday.

Ace investor Ashish Rameshchandra Kacholia sold 15 lakh shares equivalent to 0.56% of total paid up equity of Delta Corp.

The stock has lost more than 23% in the last two sessions, after the company received a notice from the government to pay tax of Rs 111.4 billion along with interest and penalty for the period July 2017 to March 2022, on Friday.

Stocks that were in focus included names like Ircon, which rose 1.24%, Delta Corp, which fell 17%, and Union Bank, whose shares jumped 1.89% on Monday.

The stock hit a 52-week low of ₹140.20 before closing at ₹143. On the BSE, over 7 million Delta shares changed hands as against the two-week daily average of 352,000 shares. Investor Ashish Kacholia sold 1.5 million shares worth over ₹21 crore at ₹144.65 apiece on the NSE in Monday's trade, according to the exchange's deal data.

It is unclear how much Kacholia held prior to the stake sale in Delta Corp. It will most likely be below 1%. The stake sale comes after the casino operator received a notice from the government for a tax liability.

The company has been legally advised that the tax demand is arbitrary and contrary to law, and the company will pursue all legal remedies

Shares of Delta Corp, which operates casinos in India, fell nearly 20% following a tax payment notice from the government. The notice requires the company to pay Rs 11,140 crore along with interest and penalty for the period July 2017 to March 2022.

The September 22, claim by the tax department is 3.5x Delta Corp’s last closing market cap and more than double the company’s last decade’s revenue. One saving grace is that the company is debt free.

The September 22, claim by the tax department is 3.5x Delta Corp’s last closing market cap and more than double the company’s last decade’s revenue. One saving grace is that the company is debt free.

Indias largest casino chain Delta Corp has been issued an intimation by the Directorate General of GST Intelligence, Hyderabad alleging tax liability of Rs 11,139 crore along with interest and penalty for the period from July 2017 to March 2022. If the dues remain unpaid it will be served with a show-cause notice, the company said in a stock exchange filing on Friday.

The net long position of foreign portfolio investors decreased from Rs 58,995 crore on Monday to Rs 33,913 crore on Wednesday.

The F&O contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%.

Oil prices spiked more than 1% on Tuesday after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts, stretching a combined 1.3 million barrel per day (bpd) reduction for another three months through December.

Delta Corp stock has lost 5.61 percent of its value over the last six months. The benchmark Nifty50 index has given a return of 10.26 percent over the same duration.

The deal comes two months after GST Council announced its decision to impose a 28 percent Goods and Services Tax (GST) on casinos

India VIX, which is a measure of the fear in the markets, fell 0.17% to settle at 11.73 levels.

Delta Corp, incorporated in the year 1990, is a Mid Cap company (having a market cap of Rs 4868.90 Crore) operating in Tourism & Hospitality sector.

"In the near term, we expect the market to trade in a broader range with buying seen at lower levels. Stock specific action is likely to dominate," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Option data suggests a broader trading range in between 19000 to 19800 zones while an immediate trading range in between 19200 to 19600 zones.

Option data suggests a broader trading range in between 19000 to 19800 zones while an immediate trading range in between 19200 to 19600 zones.

Hardik Dhebar, the CFO of Delta Corp Ltd, has resigned from his position after 15 years with the casino company, due to professional challenges and career goals. Dhebar's resignation will come into effect on August 16th, 2023, and the Board of Directors will find a replacement to ensure continuity in the company's operations. Delta Corp Ltd reported a 19% increase in Q1 FY24 profit due to higher demand for casino gaming.

The texture suggests a strong possibility of a fresh uptrend rally from the current levels. For the positional traders now, 2390 is a crucial support zone, if it holds that level then it could rally till 2550 or 50-day SMA. Further upside may also continue which could lift the stock till 2610.

The Council, chaired by Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying a 28% tax on the full face value of bets in online gaming, casinos and horse racing.

Keeping all of this in mind, Dhebar said that the IPO is on hold and the company will revisit this plan once complete clarity emerges.

Foreign portfolio investors were net buyers for the second straight day at Rs 922 crore. DIIs too bought shares worth Rs 470 crore on Wednesday.

L&T could remain a stock market leader and outperformer, especially after the buyback, according to Dipan Mehta from Elixir Equities. Bajaj Finance is expected to have a solid quarter, but the stock price may not rally due to a sell-on-news syndrome, and the company faces new challenges such as Piramal Enterprises, Poonawalla Fincorp, and Jio Finance. Despite a historic earnings report, Delta Corps outlook is tricky with uncertainty surrounding the 28% levy on all gambling revenues.

Growing revenue offset total expenses for the quarter, which inched up 9% to 1.95 billion rupees, with licence fees and registration charges rising more than 7%.

Option data suggests a shift in trading range in between 19500 to 20200 zones while an immediate trading range in between 19600 to 20000 zones.

The investor has picked up 1.34% stake amounting to 11,26,765 equity shares in Zen Technologies during the reported quarter

Option data suggests a shift in trading range in between 19500 to 20200 zones while an immediate trading range in between 19600 to 20000 zones.

The stock has been in great momentum this week gaining more than 11% over the five trading sessions, significantly outperforming the S&P BSE Sensex which has given 0.94% returns during this time.

This issue around tax payments by casinos stems from the lack of clarity in the tax law. Some establishments took advantage of this loophole and remitted GST at a much lower rate of 18 percent.

Option data suggests a broader trading range in between 19100 to 19700 zones while an immediate trading range in between 19250 to 19550 zones.

Option data suggests a broader trading range in between 19100 to 19700 zones while an immediate trading range in between 19250 to 19550 zones.

​I am not putting much emphasis on the quarter-on-quarter number because this is a seasonally weak quarter and not a correct comparison but that year-on-year comparison tells you that they are headed towards that 7-8% kind of annual growth rate, which is within the guidance.

Stocks that were in focus include names like TCS, which was lower by 0.36%, Delta Corp, which tanked 23% and Sun Pharma, whose shares rose nearly 0.53% on Wednesday.

The decision is expected to impact gaming volumes besides slowing down future foreign investment and the viability of gaming companies - especially in the start-up space - that have recorded impressive growth in recent times, said analysts. The 28% levy is the highest standard rate and typically covers most luxury items.

“The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. While optimism about moderation in US inflation supported the broad index. Further, an uptick in domestic food inflation on the back of mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend,” said Vinod Nair, Head of Research at Geojit Financial Services

We saw big selling pressure in Delta Corp. Equirus Wealth sold 25.32 lakh shares in the casino gaming company, and Kalpraj Damji Dharamshi offloaded 19 lakh shares.

The government's decision, announced late on Tuesday, was met with dismay in the $1.5 billion industry, and shares of casino operator Delta Corp and other online gaming companies plunged in Wednesday's trade.

Revenue Secretary Sanjay Malhotra told local television channels that there was no need to consult the gaming industry and amendments to enable the tax will be brought in the monsoon session of Parliament. India's monsoon session begins later this month.

Sectorally, buying was seen in realty, healthcare, and oil & gas stocks, while selling was seen in IT, telecom, utilities, and consumer durable. Stocks that were in focus include names like Elgi Equipments, which was up 7%, J.B Chemicals & Pharmaceuticals, which gained over 6% to hit a fresh 52-week high, and Delta Corp, which fell more than 23% on Wednesday.

Another casualty will be the IPO plans of Delta Corp’s subsidiary, Deltatech Gaming Limited, formerly known as Gaussian Networks, and a leader in India's online gaming industry since 2011

Option data shows 19,500 remains the biggest hurdle for Nifty for now.

In a major setback to the country's online gaming industry, the GST Council on Tuesday decided to levy a 28% tax on the full value of monies paid by users. Moreover, GST on online gaming will be imposed without any differentiation of whether it's based on skill or chance.

IT giants TCS and HCL Tech are scheduled to announce their June quarter numbers post-market hours. Investors would also be tracking the CPI number for June which is due today.

"Going forward, we expect the positive momentum to continue on the back of healthy earnings, consistent FII inflows, and improving monsoon," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

"Going forward, we expect the positive momentum to continue on the back of healthy earnings, consistent FII inflows, and improving monsoon," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

The F&O contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%. Traders who trade in indices do not encounter a situation of security ban.

Option data suggests a broader trading range in between 19100 to 19700 zones while an immediate trading range in between 19200 to 19500 zones.

Option data suggests a broader trading range in between 19100 to 19700 zones while an immediate trading range in between 19200 to 19500 zones.

The Future & Options contracts of any stock enter the ban period when the open interest (OI) on it crosses 95% of the market-wide positions limits or MWPL. The ban on it is reversed only if the open interest falls below 80%.

"Going forward, markets are likely to sustain the current momentum, as stock-specific action will pick up with the onset of the Q1FY24 earning season," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Option data suggests a broader trading range in between 19200 to 19700 zones while an immediate trading range in between 19350 to 19600 zones.

Option data suggests a broader trading range in between 19200 to 19700 zones while an immediate trading range in between 19350 to 19600 zones.

It is great to see Nifty inching towards lifetime high levels finally because Bank Nifty did that first. Then Sensex did it and finally Nifty is managing to do that. And also we can clearly see that 19000, there is a lot of call build up.