Benchmarks trades in green in late afternoon session

Indian equity markets reversing its losses have now started trading in green in late afternoon session on the first trading day of the year 2016. Delay in key reforms including GST, global headwinds and uncertainty about an interest rate hike in the US, had kept the markets on the edge in 2015. Investors are eyeing passage of the long-pending GST bill, lower interest rates and a bounce-back in the foreign portfolio investments, and also a stable rupee and good monsoons. Traders were seen piling position in Realty, Capital Goods and Auto stocks, while selling was witnessed in IT and TECK sector stocks. In the scrip specific development, aviation stocks like Jet Airways, SpiceJet and InterGlobe Aviation were trading firm on back of heavy volumes on reports of cut in Aviation Turbine Fuel (ATF) prices. Petronet LNG was trading firm after touching a fresh 52-week high after the company reworked its terms with Qatar’s RasGas that will halve the import price to $6-7 per mmBtu.

On the global front, the Asian markets were trading mostly in red. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,950 and 26,100 levels respectively. The market breadth on BSE was positive in the ratio of 1925:723 while 110 scrips remained unchanged.

The BSE Sensex is currently trading at 26157.22, up by 39.68 points or 0.15% after trading in a range of 26008.20 and 26178.91. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.87%, while Small cap index up by 0.90%.

The gaining sectoral indices on the BSE were Realty up by 1.92%, Capital Goods up by 0.99%, Auto up by 0.91%, Consumer Durables up by 0.90%, PSU up by 0.81% while, IT down by 0.41%, TECK down by 0.35% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.19%, SBI up by 1.58%, Adani Ports & Special Economic Zone up by 1.48%, BHEL up by 1.36% and Coal India up by 1.28%.

On the flip side, Tata Steel down by 1.31%, TCS down by 0.89%, NTPC down by 0.86%, GAIL India down by 0.84% and Wipro down by 0.77% were the top losers.

Meanwhile, India’ s fiscal deficit for the first eight months of the current financial year narrowed compared to the same period a year ago, led by encouraging tax and non-tax collections, despite high capital spending by the government to boost the economic growth. According to the data released by the Controller General of Accounts, India’ s fiscal deficit for April- November 2015-16 stood Rs 4.83 lakh crore, or 87 per cent of the Budget Estimate (BE) for the whole 2015-16. The fiscal situation in April-November showed improvement over the year-ago period as the deficit then stood at 98.9% of the Budget Estimate of 2014-15.

As per the data released, tax revenue during April- November period came in at Rs 4.64 lakh crore, or 50.5 per cent of the full year BE of Rs 9.19 lakh crore as against 42.3 per cent the same period last fiscal Total receipts from revenue and non-debt capital of the government during the first eight months read Rs 6.5 lakh crore. The government estimates Rs 12.21 lakh crore receipts at end-March 2016.

The data further highlighted that the total expenditure touched Rs 11.4 lakh crore or 64.3 per cent at the end of November of budget estimate for the current fiscal, partially higher than 59.8 per cent of the full year funds spent last fiscal. The plan expenditure during this period was Rs 2.9 lakh core, 64.1 per cent of the full-year BE. During the same period last year, the government had managed to achieve 51.1 per cent of Plan expenditure estimate. Meanwhile, non-Plan expenditure during April-October of 2015-16 was Rs 8.4 lakh crore, or 64.3 per cent, of the whole-year estimate.

Total receipts stood at Rs 6.58 lakh crore or 53.9 per cent of the Budget estimate between April and November this fiscal as against 43.4 per cent of the full year target a year ago. Centre's indirect tax mop up rose 34.3 per cent in the first eight months of 2015-16, led by additional revenue measures such as excise increases on diesel and petrol, withdrawal of exemptions for motor vehicles, capital goods and consumer durables the increase in service tax from 12.36 to 14 per cent. Besides, the government introduced the Swachh Bharat cess of 0.5 per cent with effect from November 15.

Meanwhile, the revenue deficit considered a bigger worry as it does not result in capital formation during the first eight months period of the current fiscal stood at Rs 3.45 lakh crore, or 87.5 per cent of BE compared to 108.6 per cent in the corresponding period of the previous financial year. The fiscal deficit -- gap between government’s expenditure and revenue for 2015-16 has been pegged at Rs 5.55 lakh crore or 3.9 per cent of the gross domestic product (GDP).

The chief economic adviser in the mid-year analysis recommended the government to revisit the fiscal consolidation road map on account of sharp fall in the nominal GDP growth, besides higher estimated expenditure next financial year on account of the 7th Pay Commission and the One Rank One Pension scheme.

The CNX Nifty is currently trading at 7964.65, up by 18.30 points or 0.23% after trading in a range of 7909.80 and 7965.95. There were 30 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.19%, Bosch up by 1.91%, SBI up by 1.87%, PNB up by 1.82% and Bank of Baroda up by 1.56%.

On the flip side, Tata Steel down by 1.37%, NTPC down by 1.16%, HCL Tech. down by 1.09%, Wipro down by 0.84% and GAIL India down by 0.77% were the top losers.

The Asian markets were trading mostly in red; FTSE Bursa Malaysia KLCI decreased 0.63 points or 0.04% to 1,692.51, Straits Times was down by 0.01 points at 2,882.72 while Jakarta Composite increased 23.65 points or 0.52% to 4,593.01.