Benchmarks trade in green in early deals

Indian equity benchmarks made a positive start and are trading slightly in green in early deals on Friday, as traders reacted positively to the GDP numbers for the second quarter ended September. Reversing a five-quarter slide and setting itself on course for revival GDP rose 6.3 per cent in the July-September period, compared with the three year low of 5.7 per cent growth in the April-June quarter and 7.5 per cent in the year earlier. Reacting to the GDP growth data, Finance Minister Arun Jaitley has said the impact of demonetization and GST is behind us and growth in coming quarters will be on upward trajectory. However, gains remained capped after the eight core sectors grew at a slower pace of 4.7% in October, chiefly due to subdued performance of cement, steel and refinery segments. Market participants also remained a bit cautious with India’s fiscal deficit at the end of October hitting 96.1 per cent of the budget target for 2017-18 on account of lower revenues and increase in expenditure. The fiscal deficit was 79.3 per cent in the same period last year.

On the global front, Asian markets exhibiting mixed trend at this point of time, as the U.S. tax bill encountered stumbling blocks. Japanese shares gave up the early gains that briefly helped the Nikkei 225 to reclaim a 25-year high reached in November. The US markets moved higher in the last session and the Dow and the S&P 500 reached new record closing highs on optimism about the outlook for tax reform after Senate Republicans cleared a key procedural hurdle. Back home, broader indices outperforming benchmarks and are trading with a gain of over half a percent. On the sectoral front, auto stocks remained buzzing as their sales numbers for the month of November will be announced.

The BSE Sensex is currently trading at 33,198.36, up by 49.01 points or 0.15% after trading in a range of 33,172.64 and 33,300.81. There were 18 stocks advancing against 12 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index gained 0.61%, while Small cap index was up by 0.76%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.84%, Industrials up by 0.82%, Auto up by 0.76%, Consumer Disc up by 0.63% and FMCG was up by 0.56%, while Telecom down by 0.30% and Metal was down by 0.14% were the only losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 1.42%, Tata Motors up by 1.04%, Maruti Suzuki up by 0.99%, ONGC up by 0.89% and Larsen & Toubro up by 0.79%. On the flip side, Bharti Airtel down by 1.12%, Coal India down by 0.71%, HDFC down by 0.65%, Dr. Reddys Lab down by 0.59% and Cipla down by 0.39% were the top losers.

Meanwhile, snapping a five-quarter slide, India’s Gross Domestic Product (GDP) growth accelerated to 6.3% in the July-September quarter of fiscal year 2017-18 (Q2FY18), from  a three-year low of 5.7% in the April-June quarter,  as  businesses adjusted to the new Goods and Services Tax (GST) regime. It was mainly manufacturing, coupled with mining, electricity and construction that gave a boost to the GDP growth. Though, the pace of growth was below 7.5% recorded in the corresponding quarter a year ago. Gross value added (GVA), the summation of agriculture, industry and services, also grew at a higher rate of 6.1% in Q2FY18 as compared to 5.6% in the previous quarter.

As per the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation data, GDP at constant (2011-2012) prices in Q2 of 2017-18  is estimated at Rs 31.66 lakh crore, as against Rs 29.79 lakh crore in Q2 of 2016-17, showing a growth rate of 6.3%.  Quarterly GVA at Basic Price at constant (2011-12) prices for Q2 of 2017-18 is estimated at Rs 29.18 lakh crore, as against Rs 27.51 lakh crore in Q2 of 2016-17, showing a growth rate of 6.1% over the corresponding quarter of previous year.

GDP at current prices in Q2 of 2017-18 is estimated at Rs 40.22 lakh crore, as against Rs 36.76 lakh crore in Q2 of 2016-17, showing a growth rate of 9.4%. GVA at basic price at current prices in Q2 of 2017-18, is estimated at Rs 36.40 lakh crore, as against Rs 33.52 lakh crore in Q2 of 2016-17, showing an increase of 8.6%. The economic activities which registered growth of over 6.0% in Q2 of 2017-18 over Q2 of 2016-17 are ‘manufacturing’, ‘electricity, gas, water supply & other utility services and ‘trade, hotels, transport & communication and services related to broadcasting’.

According to the data, the agriculture, forestry and fishing sector is estimated to have grown by 1.7%. Manufacturing sector grew at 7.0% during the quarter-ended September from 7.7% growth in the same period last year. ‘Mining and quarrying’ sector grew by 5.5% as compared to growth of (-) 1.3% in Q2 2016-17, ‘Electricity, Gas, water supply and other utility services’  sector  grew by 7.6% as compared to growth of 5.1% in Q2 2016-17 and from ‘Construction’ sector grew by 2.6% as compared to growth of 4.3% in Q2 2016-17. For instance trade, hotel, transport, communication and services related to broadcasting grew by 9.9% as compared to 7.7% in a year ago quarter.

On the expenditure front, Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 23.05 lakh crore in Q2 of 2017-18 as against Rs 21.07 lakh crore in Q2 of 2016-17. At constant (2011-12) prices, the PFCE is estimated at Rs 17.06 lakh crore in Q2 of 2017-18 as against Rs 16.02 lakh crore in Q2 of 2016-17. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.43 lakh crore in Q2 of 2017-18 as against Rs 5.07 lakh crore in Q2 of 2016-17. At constant (2011-2012) prices, the GFCE is estimated at Rs 3.96 lakh crore in Q2 of 2017-18 as against Rs 3.81 lakh crore in Q2 of 2016-17.

The CNX Nifty is currently trading at 10244.80, up by 18.25 points or 0.18% after trading in a range of 10233.40 and 10272.70. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 1.27%, Bosch up by 1.21%, UPL up by 1.06%, Zee Entertainment up by 1.03% and ONGC up by 0.97%. On the flip side, Bharti Airtel down by 1.27%, Hindalco down by 1.14%, Indian Oil Corporation down by 0.69%, Cipla down by 0.65% and Coal India down by 0.63% were the top losers.

Asian markets exhibiting mixed trend; Hang Seng slipped 38.61 points or 0.13% to 29,138.74 and Shanghai Composite was down by 11.63 points or 0.35% to 3,305.56. On the flip side, KOSPI Index increased 6.2 points or 0.25% to 2,482.57, Nikkei 225 gained 31.94 points or 0.14% to 22,756.90 and Taiwan Weighted was up by 55.67 points or 0.53% to 10,616.11.