Key indices continue to trade with small losses

Key benchmark indices continued to trade with small losses in early afternoon trade, dragged by metal, Utilities and Telecom stocks amid weak global cues. Sentiments remained pessimistic with data showing that 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. Some anxiety also came as India’s fiscal deficit at the end of October touched 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. However, recovery in the GDP number for the second quarter ended September, helped to restrict further downfall. 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. Meanwhile, broader indices were acting contrary to the trend, with gains in the range of 0.35%-0.45%. In scrip specific development, Bajaj Hindusthan Sugar was up by over two percent after receiving approval from Overseeing Committee for implementation of S4A Resolution Plan.

On the global front, Asian markets were trading mostly in red, with the latest Caixin purchasing managers' index showing that factory activity in China fell to its lowest level in five months in November, while confidence about the business outlook also dropped. Back home, the BSE Sensex is currently trading at 33098.84, down by 50.51 points or 0.15% after trading in a range of 33065.77 and 33300.81. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index was up by 0.41%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.67%, FMCG up by 0.61%, Industrials up by 0.47%, Consumer Durables up by 0.46% and Auto up by 0.41%, while Metal down by 0.88%, Utilities down by 0.55%, Telecom down by 0.53%, Energy down by 0.53% and Oil & Gas down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 1.10%, ITC up by 1.02%, Larsen & Toubro up by 0.92%, Tata Motors up by 0.82% and TCS up by 0.79%. On the flip side, Tata Steel down by 1.68%, Bharti Airtel down by 1.39%, Coal India down by 1.12%, Infosys down by 0.92% and Dr. Reddy’s Lab down by 0.89% were the top losers.

Meanwhile, India’s fiscal deficit, the gap between expenditure and revenue, touched 96.1% of the budget estimate (BE) in the first seven months of financial year 2017-18, mainly because of lower revenue collections and increase in expenditure. As per the data released by the Controller General of Accounts (CGA), in absolute terms, the fiscal deficit was Rs 5.25 lakh crore during the April-October period of 2017-18. It also showed that during the same period of last financial year, the deficit was 79.3% of the target.

For 2017-18, the government aims to bring down the fiscal deficit to 3.2% of the GDP, after it met the deficit target of 3.5% of the GDP in the last fiscal. As per the CGA data, the government’s revenue receipts were at Rs 7.29 lakh crore during April-October period, which amounts to 48.1% of the BE of Rs 15.15 lakh crore for the whole year. In the comparable period last fiscal, revenue receipts comprising taxes and other items were 50.7% of the target. 

The data further revealed that the government’s total expenditure was Rs 12.92 lakh crore at October-end, or 60.2% of the budget estimate. It was 58.2% of the budget estimate a year ago.  Besides, it noted that capital expenditure during April- October 2017-18 was only 52.6% of BE as compared to 50.7% in the same period of last fiscal. It also indicated that the revenue expenditure, including interest payment, was 61.5% of the BE during April- October 2017-18, compared with 59.2% in the corresponding period of 2016-17.

The CNX Nifty is currently trading at 10208.50, down by 18.05 points or 0.18% after trading in a range of 10201.50 and 10272.70. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 1.03%, Larsen & Toubro up by 1.02%, Tata Motors up by 0.95%, Mahindra & Mahindra up by 0.81% and TCS up by 0.80%. On the flip side, Indiabulls Housing Finance down by 1.82%, Tata Steel down by 1.80%, Vedanta down by 1.56%, Indian Oil Corporation down by 1.46% and Bharti Airtel down by 1.33% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 93.32 points or 0.32% to 29,084.03, KOSPI Index was down by 0.96 points or 0.04% to 2,475.41 and Shanghai Composite dipped 0.33 points or 0.01% to 3,316.86.

On the flip side, Taiwan Weighted increased 39.93 points or 0.38% to 10,600.37 and Nikkei 225 was up by 94.07 points or 0.41% to 22,819.03.