Indian equity benchmarks are trading slightly in red in early deals on Thursday. Sentiments remained dampened after former RBI governor D Subbarao cautioned against India’s deficit challenge and said the country is no longer the sweet spot due to rising oil prices. Some anxiety also came after India reported a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March. However, losses remained capped as some solace came with report that the Indian economy grew at five-quarter high of 7.2% in the October-December period reflecting overall recovery due to good show by agriculture, manufacturing, construction and certain services. The economy is expected to grow at 6.6% in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1% in 2016-17. The earlier estimate was 6.5%. The growth for the second quarter (July-September) has been revised upwards to 6.5%, from 6.3% estimated earlier by the CSO. Meanwhile, India’s core sectors grew at a faster clip in January from a year ago than in the previous month, with an uptick in cement, electricity, coal, refinery products and steel industries, indicating a strong start to the last quarter of 2017-18. The combined index of the eight core industries rose 6.7% in January compared to 4.2% in December 2017.
On the global front, Asian markets paring initial losses entered into green terrain. However, Japanese Nikkei edged lower by around one and a half percent, as investors digested Japanese manufacturing PMI data that showed the manufacturing sector expanded at a slower rate in February. The US markets closed sharply lower on Wednesday, as traders expressed uncertainty about the outlook for interest rates after new Federal Reserve Chairman Jerome Powell seemed to suggest that the Fed may raise rates more than the three times currently anticipated.
Back home, traders are getting some respite with Prime Minister’s Economic Advisory Council Chairman Bibek Debroy’s statement that the economy is on the right track and the current expansion in the growth rate suggests that the reforms initiated by the government have started showing results. In scrip specific development, Ashoka Buildcon surged with arm emerging lowest bidder for ‘Khairatunda - Barwa’ project, while Dilip Buildcon edged higher on emerging lowest bidder for three projects worth Rs 5,390 crore.
The BSE Sensex is currently trading at 34163.50, down by 20.54 points or 0.06% after trading in a range of 34113.85 and 34278.63. There were 18 stocks advancing against 13 stocks declining on the index.
The broader indices were trading mixed; the BSE Mid cap index slipped 0.07%, while Small cap index was up by 0.31%.
The top gaining sectoral indices on the BSE were Realty up by 0.40%, Basic Materials up by 0.38%, Auto up by 0.31%, Industrials up by 0.30% and Metal was up by 0.24%, while IT down by 0.58%, TECK down by 0.54%, PSU down by 0.27%, Power down by 0.17% and Utilities was down by 0.14% were the top losing indices on BSE.
The top gainers on the Sensex were Bajaj Auto up by 1.89%, Bharti Airtel up by 0.92%, Tata Steel up by 0.77%, Sun Pharma up by 0.68% and Indusind Bank was up by 0.66%. On the flip side, Infosys down by 1.38%, Power Grid Corporation down by 0.88%, Asian Paints down by 0.73%, Hero MotoCorp down by 0.56% and SBI down was by 0.54% were the top losers.
Meanwhile, regaining its status as the world’s fastest-growing major economy, Indian economy grew at five-quarter high of 7.2% in the October-December period of the fiscal year 2017-18 (FY18), as against 6.5% in the previous quarter and 6.8% in the same period last year, on the back of a sharp pickup in the services sector, a rebound in industrial activity, especially manufacturing and construction, and an expansion in agriculture. The previous high was recorded at 7.5% in the July-September quarter of fiscal year 2016-17. Besides, the growth for the second quarter of FY18 has been revised upwards to 6.5%, from 6.3% estimated earlier.
The Central Statistics Office, in its second advance estimate, has pegged India’s full year 2017-18 GDP growth rate at 6.6% marginally higher than the first advance estimate of 6.5%, but would be the lowest growth in four years. Besides, the country had recorded GDP growth of 7.1% in the previous financial year. As per the data, GDP at constant (2011-12) prices in Q3 of 2017-18 is estimated at Rs 32.50 lakh crore, as against Rs 30.32 lakh crore in Q3 of 2016-17, showing a growth rate of 7.2%. Gross Value Added (GVA) at basic prices at constant (2011-12) prices in Q3 of 2017-18 is estimated at Rs 30.11 lakh crore, as against Rs 28.21 lakh crore in Q3 of 2016-17, showing a growth rate of 6.7%.
All three sectors - agriculture, industry and services - have accelerated in the third quarter. ‘Agriculture, forestry & fishing’ sector recorded an improvement in GVA growth to 4.1% in October-December from 2.7% in the previous quarter. Manufacturing growth estimated at 8.1% for Q3 FY18, up from 6.9% in Q2 FY18; construction growth at 6.8% in Q3 FY18, up from 2.8% in Q2 FY18. Growth rates in various sectors are as follows: ‘electricity, gas, water supply and other utility services’ (6.1%) ‘financial, real estate and professional services’ (6.7%), and ‘Public administration, defence and Other Services’ (7.2%). However, mining, electricity and trade communication were the sectors that bucked the trend. ‘Mining & quarrying’ recorded growth of (-) 0.1% in the Oct-Dec quarter as compared to 7.1% in the previous quarter. ‘Trade, hotels, transport, communication and services related to broadcasting’ grew at 9.0% slightly lower than 9.3% recorded in the Q2 FY18.
GDP at current prices in Q3 of 2017-18 is estimated at Rs 43.09 lakh crore, as against Rs 38.50 lakh crore in Q3 of 2016-17, showing a growth rate of 11.9%. GVA at current basic prices in Q3 of 2017-18 is estimated at Rs 38.98 lakh crore, as against Rs 35.18 lakh crore in Q3 of 2016-17, showing a growth of 10.8%.
The per capita income in real terms (at 2011-12 prices) during 2017-18 is likely to attain a level of Rs 86,689 as compared to Rs 82,229 for the year 2016-17. The growth rate in per capita income is estimated at 5.4% during 2017-18, as against 5.7% in the previous year. Besides, Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 98.59 lakh crore in 2017-18 as against Rs 90.05 lakh crore in 2016-17. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 19.06 lakh crore in 2017-18 as against Rs 16.64 lakh crore in 2016-17. Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 47.73 lakh crore in 2017-18 as against Rs 43.52 lakh crore in 2016-17.
The CNX Nifty is currently trading at 10489.65, down by 3.20 points or 0.03% after trading in a range of 10475.20 and 10525.50. There were 25 stocks advancing against 25 stocks declining on the index.
The top gainers on Nifty were Bajaj Auto up by 1.53%, Aurobindo Pharma up by 1.24%, Ambuja Cement up by 1.01%, BPCL up by 0.80% and Tata Steel up by 0.76%. On the flip side, Bharti Infratel down by 1.12%, Tech Mahindra down by 1.10%, Infosys down by 0.97%, ICICI Bank down by 0.72% and Asian Paints down by 0.62% were the top losers.
Asian markets are trading mostly in green; FTSE Bursa Malaysia KLCI increased 3.68 points or 0.2% to 1,859.88, Shanghai Composite gained 19.67 points or 0.6% to 3,279.08, Jakarta Composite jumped 19.87 points or 0.3% to 6,617.09 and Hang Seng was up by 72.44 points or 0.23% to 30,917.16.
On the flip side, Nikkei 225 declined 312.54 points or 1.42% to 21,755.70 and Taiwan Weighted was down by 31.18 points or 0.29% to 10,784.29.
