Benchmarks continue to trade above neutral line

Indian equity benchmarks continued their trade in green in morning session on account of buying in frontline blue chip counters. The rupee inched up against dollar as banks and corporates unwound their bets of the US currency. Foreign Portfolio Investors (FPIs) sold shares worth a net Rs 364.80 crore on March 8, showed provisional data. However, domestic institutional investors (DIIs) bought shares worth a net Rs 675.26 crore. The sentiments were upbeat on report that the direct tax collections jumped by nearly 20 per cent between April and February this fiscal as the Income-Tax Department races to meet its full year targets. The net direct tax receipts grew by a hefty 19.5 per cent in the first 11 months of the fiscal amounting to Rs 7.44 lakh crore. Net corporate income tax collections increased by 19.7 per cent in the period, while personal income tax receipts grew by 18.6 per cent. Some support also came with Economic Affairs Secretary Subhash Chandra Garg’s statement that the 7.2 per cent expansion in the economy during October-December quarter has put the country in one of the highest growth bracket in the world and recovery will continue to be sharp going ahead. The third quarter growth of 7.2 per cent was highest in five quarters. The previous high was recorded at 7.5 per cent in the July-September quarter of 2016-17.

Meanwhile, investors took note that engineering exports which have been recording a healthy growth is expected to see a new high in the current financial year. Commerce Secretary Rita Teaotia said the exports to developed countries are growing at a rapid pace. Shipments to North America and Europe account for about 40 per cent of the total exports from the sector. Aviation stocks Jet Airways, InterGlobe Aviation and SpiceJet were trading in green as India’s aviation market reported its 41st consecutive month of double-digit traffic increase, with a 17.9 percent rise in January. The country’s domestic market continued to be among the fastest growing in the world. Data released by International Air Transport Association (IATA) shows that capacity (measured in available seat kilometers) rose by 16.7 percent in India, again among the fastest. Select power companies were under pressure on report that thermal power projects promoted by Adani, Essar, Jaypee and Lanco figure in the list of 34 stressed electricity projects with total capacity of over 40 GW. According to report on Stressed/Non-performing Assets in Electricity, tabled in Parliament by Standing Committee on Energy, the total outstanding debt in these stressed project is of the tune of Rs 1.74 lakh crore as of June, 2017 based on the RBI data.

Traders were seen buying in Healthcare, Consumer Disc and Consumer Durables stocks, while selling was witnessed in Metal, Basic Materials and Bankex sectors stocks. In scrip specific development, GTL Infrastructure was locked at lower circuit touching 52-week low as the company informed the exchanges that its operations will be hit by client Aircel’s bankruptcy. On March 1, Aircel filed for bankruptcy before the National Company Law Tribunal (NCLT) with intent to undertake a resolution plan. If no revival is possible and Aircel becomes insolvent, the company would lose all 23,727 of Aircel’s tenancies. HG Infra Engineering was trading in red after debuting on exchanges. The company raised Rs 462 crore through initial public offer (IPO) during February 26-28, 2018.

On the global front, Asian markets were trading mostly in green. The Bank of Japan stayed the course with its monetary stimulus at Governor Haruhiko Kuroda’s final policy meeting before his new term begins next month. With inflation still far from the BOJ’s 2 percent target, Kuroda made it clear during parliamentary confirmation hearings this week that powerful monetary easing is here for a while. Back home, the BSE Sensex and NSE Nifty were trading above the psychological 33,400 and 10,250 levels respectively. The market breadth on BSE was positive in the ratio of 1339:890, while 92 scrips remained unchanged.

The BSE Sensex is currently trading at 33451.30, up by 99.73 points or 0.30% after trading in a range of 33316.58 and 33519.49. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.22%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.75%, Consumer Disc up by 0.72%, Consumer Durables up by 0.72%, TECK up by 0.70% and Telecom up by 0.69%, while Metal down by 0.96%, Basic Materials down by 0.30%, Bankex down by 0.30%, PSU down by 0.22% and Utilities down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 1.66%, HDFC up by 1.47%, ONGC up by 1.30%, Bajaj Auto up by 1.16% and Dr. Reddy’s Lab up by 1.05%.

On the flip side, Tata Steel down by 1.76%, SBI down by 1.23%, Adani Ports & Special Economic Zone down by 0.86%, NTPC down by 0.82% and Yes Bank down by 0.71% were the top losers.

Meanwhile, continuing its trend, the government’s revenue collection during April-February period of fiscal year 2017-18 has shown a healthy growth, on the back of a strong pick up in corporate tax collections. According to the Ministry of Finance, net direct tax collections up to February, 2018 stood at Rs 7.44 lakh crore, registering a growth of 19.5 percent higher than the net collections for the corresponding period of last year.

The collection indicated that 74.3 percent of the Revised Estimates of Direct Taxes for FY 2017-18 (Rs 10.05 lakh crore) has been achieved. Before adjusting for refunds, gross collections surged 14.5 percent to Rs 8.83 lakh crore during April 2017 to February 2018. Further, refunds amounting to Rs 1.39 lakh crore have been issued during 11 months of the current financial year. 

In the first 11 months of FY18, net corporate tax collections increased by 19.7 percent, while the personal income tax mop-up grew by 18.6 percent. Meanwhile, in Union Budget 2018-19, the government revised the target for 2017-18 upwards from the budgeted Rs 9.8 lakh crore to Rs 10.05 lakh crore.

The CNX Nifty is currently trading at 10272.90, up by 30.25 points or 0.30% after trading in a range of 10230.55 and 10296.70. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 2.30%, Tech Mahindra up by 1.70%, Hero MotoCorp up by 1.57%, HDFC up by 1.48% and Bajaj Finance up by 1.35%.

On the flip side, Tata Steel down by 1.78%, SBI down by 1.19%, Hindalco down by 1.03%, NTPC down by 0.91% and Yes Bank down by 0.89% were the top losers.
The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 2.87 points or 0.16% to 1,842.49, Shanghai Composite increased 5.82 points or 0.18% to 3,294.23, KOSPI Index increased 23.21 points or 0.95% to 2,456.29, Taiwan Weighted increased 27.62 points or 0.26% to 10,850.86, Nikkei 225 increased 118.03 points or 0.55% to 21,486.10 and Hang Seng increased 268.5 points or 0.88% to 30,923.02.

On the other hand, Jakarta Composite decreased 30.17 points or 0.47% to 6,412.86.