Benchmarks trade slightly in green in early deals

Indian equity benchmarks made a positive start and are trading slightly in green in early deals on Monday ahead of the RBI policy meeting on April 4-5, although the central bank is unlikely to raise rates despite increased risks to inflation posed by rising oil prices and a hike in minimum support price (MSP) announced in the Budget 2018. However, gains remain capped on report that India’s fiscal deficit accelerated to Rs 7.15 lakh crore for the period April-February 2017-18 or 120.3% of the budgeted target for the current fiscal year. Net tax receipts in the first 11 months of 2017/18 fiscal year were Rs 1.03 trillion. Meanwhile, the e-way (electronic way) bill system under Goods and Services Tax (GST) for inter-state movement of goods has come into force from April 1, with over 1.7 lakh electronic invoices expected to have generated on the first day of the rollout aimed at curbing tax evasion by traders and transporters.

On the global front, Asian markets are trading mostly in green at this point of time even as China imposed new tariffs on U.S. goods after previously floating the proposal last month. The US markets ended higher on Thursday on report from the Labor Department showing initial jobless claims fell to their lowest level in over 45 years in the week ended March 24th.

Back home, the CBI has decided to examine ICICI Bank CEO Chanda Kochhar over the Rs 3,250 crore loan sanctioned to the Videocon Group in 2012, notwithstanding a clean chit given by the bank board. Stocks related to Auto space remained in top gear on reporting monthly data for the month of March. In scrip specific development, Peninsula Land surged on launching affordable housing project in Pune and IL&FS Transportation Networks edged higher on inking agreement with Vistra ITCL India.

The BSE Sensex is currently trading at 33053.61, up by 84.93 points or 0.26% after trading in a range of 33008.58 and 33130.13. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.35%, while Small cap index was up by 1.11%.

The top gaining sectoral indices on the BSE were Industrials up by 1.44%, Capital Goods up by 1.29%, Auto up by 1.20%, IT up by 0.65% and Utilities up by 0.63%, while Bankex down by 0.77%, Metal down by 0.14% and Consumer Durables down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.13%, Kotak Mahindra Bank up by 2.53%, Tata Motors - DVR up by 2.20%, Larsen & Toubro up by 1.68% and Maruti Suzuki up by 1.53%. On the flip side, ICICI Bank down by 4.92%, Axis Bank down by 1.86%, Coal India down by 1.66%, Bharti Airtel down by 0.80% and SBI down by 0.60% were the top losers.

Meanwhile, surpassing the revised full-year target of the fiscal year 2017-18, India’s fiscal deficit, the difference between government expenditure and revenue, has accelerated to Rs 7.15 lakh crore for the period April-February 2017-18. The deficit was 120% of its revised target, mainly due to increased expenditure and subdued revenue receipts.  The revised fiscal deficit is Rs 5.94 lakh crore as against Rs 5.47 lakh crore target earlier. In the same period last year, the fiscal deficit stood at Rs 5.94 lakh crore or 113% of the budgetary estimate.

According to the Controller General of Accounts (CGA) data, during the 11 months period ending on February, the government has collected Rs 12.83 lakh crore revenue or 79.09% of revised estimates. Of this, over Rs 10.35 lakh crore is collected from taxes, while over Rs 1.42 lakh crore and Rs 1.05 lakh crore accrued on account of non-tax revenue and non-debt capital receipts, respectively. Non-debt capital receipts consist of recovery of loans of Rs 13,301 crore. Besides, Rs 92,493 crore has been mopped up through PSU disinvestment till February-end. In the revised estimates of 2017-18, the government had raised the disinvestment target to Rs 1 lakh crore, up from Rs 72,500 crore in the Budget estimates.

Till February, over Rs 5.29 lakh crore has been transferred to state governments as devolution of share of taxes by the Centre, which is Rs 66,039 crore higher than the corresponding period of last year 2016-17. Total expenditure incurred by the government during the period was over Rs 19.99 lakh crore or 90.14% of revised estimates for 2017-18. Of this, Rs 17.02 lakh crore is on revenue account and Rs 2.97 lakh crore is on capital account. Of the total revenue expenditure, Rs 4.50 lakh crore is on account of interest payments and Rs 2.27 lakh crore is on account of major subsidies.

Besides, in the Budget for 2018-19, Finance Minister Arun Jaitley had revised upwards the fiscal deficit target to 3.5% of the Gross Domestic Product (GDP) for 2017-18, as against the initial target of 3.2%. The changes were made on account of financial hiccups due to GST implementation and delay in spectrum auction. For the financial year 2018-19, the fiscal deficit or gap between total expenditure and revenues has been pegged at 3.3%.

The CNX Nifty is currently trading at 10149.90, up by 36.20 points or 0.36% after trading in a range of 10133.95 and 10178.55. There were 34 stocks advancing against 15 stocks declining on the index, while one stock remained unchanged.

The top gainers on Nifty were Tata Motors up by 3.26%, Kotak Mahindra Bank up by 2.63%, Larsen & Toubro up by 1.84%, GAIL India up by 1.66% and Bajaj Finance up by 1.55%. On the flip side, ICICI Bank down by 4.94%, Axis Bank down by 2.17%, Coal India down by 1.62%, Hindalco down by 1.05% and Indian Oil Corporation down by 0.82% were the top losers.

Asian markets are trading mostly in green; KOSPI Index rose 3.14 points or 0.13% to 2,448.99, Shanghai Composite gained 5.58 points or 0.18% to 3,174.48, Jakarta Composite increased 35.88 points or 0.58% to 6,224.86 and Nikkei 225 up by 123.85 points or 0.58% to 21,578.15.

On the flip side, Taiwan Weighted decreased 9.49 points or 0.09% to 10,910.00 and FTSE Bursa Malaysia KLCI down by 3.13 points or 0.17% to 1,860.33.