Key benchmark indices continue to trade marginally in red

Key benchmark indices continue to trade marginally in red in the afternoon session, on account of sustained selling by fund and retail investors in the blue chip counters. Market sentiment was hit by gross domestic product (GDP) data that showed growth declined to 6.1% in the January-March quarter and India losing the tag of being the world's fastest growing major economy to China. Moreover, core sector output data also disappointed investors, with the growth of eight core sectors declining to a three-month low of 2.5 percent in April, mainly due to lower coal, crude oil and cement production. In scrip specific development, Strides Shasun was up by over four and half percent after receiving approval from the United States Food & Drug Administration (USFDA) for Ibuprofen Tablets USP, 200 mg (OTC).

On the global front, Asian markets were trading mixed, as investors remained cautious after data showed that China's manufacturing sector swung to contraction in May with a manufacturing PMI score of 49.6 as output and new orders slowed with companies shedding jobs. Back home, the BSE Sensex is currently trading at 31136.27, down by 9.53 points or 0.03% after trading in a range of 31070.47 and 31213.12. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.43%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.61%, FMCG up by 0.99%, Consumer Disc up by 0.60%, Industrials up by 0.45% and Capital Goods up by 0.44%, while Oil & Gas down by 1.10%, Metal down by 1.03%, Energy down by 0.89%, Bankex down by 0.58% and PSU down by 0.57% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 2.52%, Sun Pharma up by 2.50%, Hindustan Unilever up by 2.17%, Wipro up by 1.18% and Mahindra & Mahindra up by 1.11%. On the flip side, ICICI Bank down by 1.67%, Tata Steel down by 1.48%, Axis Bank down by 1.26%, ONGC down by 1.24% and Bharti Airtel down by 1.01% were the top losers.

Meanwhile, India’s fiscal deficit has almost met the budgeted estimates for the financial year ending March 2017. As per the data released by the Controller General of Accounts, the April-March fiscal deficit stood at 3.51 per cent of gross domestic product (GDP), leaving a deficit of Rs 5.35 lakh crore as against the estimates of Rs. 5.34 lakh crore. Finance Minister Arun Jaitley had targeted a fiscal deficit of 3.5 per cent or Rs 5.34 lakh crore in FY17.

The revenue deficit or the shortfall in total government revenue realisation from the targeted figure for the April-March period reached 99 percent of the revised estimate at Rs 3.10 lakh crore and came slightly lower at 2.02 per cent of GDP, against the Revised Estimate of 2.1 per cent. The effective revenue deficit was 0.93 per cent of GDP in 2016-17, against the Revised Estimate of 0.9 per cent. The total receipts of the government stood at Rs 14.39 lakh crore or 97.3 percent of the estimates of Rs 14.8 lakh crore. The total expenditure stood at Rs 19.74 lakh crore or 98 per cent of the estimates of Rs 20.14 lakh crore.

On a monthly basis, as per the provisional data the fiscal deficit in April 2017 stood at Rs 2.05 lakh crore or 37.6 per cent of the Budget estimate. Total receipts of the government - from revenue and non-debt capital - in April stood at Rs 36,529 crore. Total expenditure in April was Rs 2.42 lakh crore or 11.3 per cent of the full-year estimate.  Revenue collection was Rs 35,081 crore or 2.3 per cent of the estimate. The revenue deficit during the month was Rs 1,78,383 crore or 55.4 per cent.

The CNX Nifty is currently trading at 9614.35, down by 6.90 points or 0.07% after trading in a range of 9598.45 and 9634.65. There were 27 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 2.57%, Aurobindo Pharma up by 2.38%, Sun Pharma up by 2.29%, Hindustan Unilever up by 2.16% and Bharti Infratel up by 1.57%. On the flip side, Vedanta down by 2.28%, Indian Oil Corp. down by 2.04%, Hindalco down by 2.04%, Indiabulls Housing down by 1.84% and ICICI Bank down by 1.70% were the top losers.

The Asian markets were trading mixed; Taiwan Weighted increased 46.7 points or 0.47% to 10,087.42, Hang Seng rose 149 points or 0.58% to 25,809.65 and Nikkei 225 surged 209.46 points or 1.07% to 19,860.03.

On the flip side, Shanghai Composite decreased 13.47 points or 0.43% to 3,103.71, FTSE Bursa Malaysia KLCI was down by 3.2 points or 0.18% to 1,762.67 and KOSPI Index declined 2.77 points or 0.12% to 2,344.61.