Markets trade flat with negative bias

The local equity benchmarks were trading flat with a negative bias in late afternoon session, amid weak opening in European markets. The markets were reacting over the disappointing fiscal deficit data, which stood at Rs 6.77 lakh crore during April-January  2017-18 period; 113.7% of Rs 5.95 lakh crore revised Budget Estimates (BE) target for FY18, mainly due to higher expenditure. In the same period last year, the fiscal deficit was at 105.7% of BE. Besides, major industry losers like SBI, ICICI Bank and Infosys weighted on the sentiments, while the broader markets continued to trade mixed in afternoon deals. However, the indices managed to trim some of their losses, with taking support from the report that 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. Surge in eight core sectors growth also helped the markets to recover losses. India’s core sector output expanded at a faster pace of 6.7% in January 2018, against the 4.2% growth recorded in December 2017, as petroleum refinery and cement output zoomed while steel power and coal production improved.

On the global front, European markets were trading in red, as investors continued to fret over an aggressive pace of Fed interest-rate hikes. However, Asian markets were trading in green. Back home, in scrip specific development, Atul Auto gained the traction on reporting sale of 3,621 units, with a rise of 26.52% for the month of February 2018 as compared to 2,862 units sold in February 2017.

The BSE Sensex is currently trading at 34176.19, down by 7.85 points or 0.02% after trading in a range of 34080.61 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 was down by 0.09%, while Small cap index was up by 0.15%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.32%, Auto up by 0.22%, Energy up by 0.18%, FMCG up by 0.13% and Industrials up by 0.12%, while Bankex down by 0.41%, TECK down by 0.35%, IT down by 0.32%, Realty down by 0.32% and Metal down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.14%, Coal India up by 1.11%, Kotak Mahindra Bank up by 0.85%, Yes Bank up by 0.79% and Mahindra & Mahindra up by 0.78%. On the flip side, SBI down by 2.33%, ICICI Bank down by 1.80%, Infosys down by 1.15%, Hero MotoCorp down by 0.63% and ITC down by 0.57% were the top losers.

Meanwhile, breaching the full-year revised target of the current fiscal year 2017-18, India’s fiscal deficit, the difference between government expenditure and revenue, stood at Rs 6.77 lakh crore during April-January  2017-18 period, which is 113.7% of Rs 5.95 lakh crore revised Budget Estimates (BE) target for FY18, mainly due to higher expenditure. In the same period last year, the fiscal deficit was at 105.7% of BE.

According to the Controller General of Accounts (CGA) data, the government’s revenue deficit was at Rs 4.80 lakh crore during the first 10 months of 2017-18, which work out 109.2% of the revised BE, while Net tax receipts stood at 9.7 lakh crore during the reported period. Besides, total receipts from revenue and non-debt capital of the government during the period amount to Rs 11.63 lakh crore or 71.7% of revised estimate.

The data also showed that the government's total expenditure was Rs 18.39 lakh crore at January-end, or 83% of Rs 22.17 lakh crore budget estimate. Capital expenditure during April-January of 2017-18 was Rs 2.64 lakh crore, or 96.9%, of the full-year revised estimate, while revenue expenditure during the current fiscal till January came in at Rs 15.75 lakh crore or 81% of the full-year revised estimate.

The CNX Nifty is currently trading at 10489.80, down by 3.05 points or 0.03% after trading in a range of 10469.85 and 10525.50. There were 28 stocks advancing against 21 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were BPCL up by 2.72%, Aurobindo Pharma up by 2.02%, Eicher Motors up by 1.29%, Indusind Bank up by 1.14% and Coal India up by 1.05%. On the flip side, SBI down by 1.98%, Hindalco down by 1.92%, ICICI Bank down by 1.74%, Lupin down by 1.74% and UPL down by 1.24% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite increased 5.3 points or 0.08% to 6,602.52, FTSE Bursa Malaysia KLCI increased 5.92 points or 0.32% to 1,862.12, Shanghai Composite increased 14.35 points or 0.44% to 3,273.76 and Hang Seng increased 199.53 points or 0.65% to 31,044.25. On the flip side, Nikkei 225 decreased 343.77 points or 1.56% to 21,724.47 and Taiwan Weighted decreased 29.68 points or 0.27% to 10,785.79.

All European markets were trading in red; Germany’s DAX decreased 64.53 points or 0.52% to 12,371.32, France’s CAC decreased 23.17 points or 0.44% to 5,297.32 and UK’s FTSE 100 decreased 20.84 points or 0.29% to 7,211.07.