Indian equities remain in red terrain

Indian equity benchmarks continued their trade in red territory in early afternoon session, as investors remained on sidelines ahead of the Reserve Bank of India’s (RBI) policy decision on April 5. Besides, subdued trend in Asian markets and continues selling in Consumer Durables, IT and TECK stocks, weighed on the sentiments. Some concern also crept in with ICRA’s report that more Indian companies are likely to default on their borrowings in the fiscal year that started in April compared with the previous year on higher interest costs and a deterioration in business conditions. However, the losses were limited, as some support came with the report that Direct tax collections in 2017-18 at Rs 9.95 lakh crore, exceeded the revised budgetary target of Rs 9.8 lakh crore for FY18. Also, 6.84 crore income tax returns filed in the year against 5.43 crore in the previous year. Meanwhile, the broader indices were managing to hold their heads above water with gains in the range of 0.12%-0.32%. In scrip specific development, Shivam Autotech was up by over four percent on achieving around 30% increase in sales in the month of March 2018 compared to corresponding month in the previous financial year.

On the global front, Asian markets were trading in red, following the overnight sell-off on Wall Street after a fall in technology stocks and amid fears of rising trade tensions between the US and China. Back home, the BSE Sensex is currently trading at 33174.55, down by 80.81 points or 0.24% after trading in a range of 33153.83 and 33318.34. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.12%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were PSU up by 0.47%, Bankex up by 0.36%, Auto up by 0.28%, Power up by 0.27% and Healthcare up by 0.18%, while Consumer Durables down by 0.92%, IT down by 0.72%, TECK down by 0.64%, Capital Goods down by 0.50% and FMCG down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 1.98%, Indusind Bank up by 1.61%, Tata Motors - DVR up by 1.56%, Mahindra & Mahindra up by 1.52% and SBI up by 0.85%. On the flip side, Wipro down by 2.26%, ONGC down by 1.47%, Adani Ports & SEZ down by 1.34%, Larsen & Toubro down by 1.12% and HDFC down by 0.98% were the top losers.

Meanwhile, expressing confidence of achieving fiscal deficit target of current fiscal year, Finance Secretary Hasmukh Adhia has said that the government is on the course of meeting the fiscal deficit target of 3.5% of gross domestic product (GDP) for 2017-18. He added that this will be aided by buoyant tax collections, especially on the direct tax side coupled with Goods and Services Tax (GST) collections and natural savings by ministries. He also said that on the whole, the FY18 has been very good, although it was a year of uncertainty for revenue due to the implementation of the GST and other reforms.

Adhia said the government collected Rs 9.95 lakh crore from direct taxes, crossing the Budget Estimate of Rs 9.80 lakh crore. However, the collections fell short of revised estimates of Rs 10.05 lakh crore. Talking about revenues from the GST, he said that the collection is 98% of the Rs 4.44 lakh crore target set in revised budget estimates. He further said that there might be less expenditure as some departments might not have spent the entire amount allocated to them for the entire fiscal.

Finance Secretary added that if a department, in spite of giving them the money is unable to spend, then it becomes a natural savings and that kind of natural savings may be there, but not otherwise. However, he said that it would take about 10 days time to ascertain the quantum of savings by various ministries and departments. Besides, the government had reported a fiscal deficit of Rs 7.16 lakh crore or 120.3% of the revised target for April-February.

The CNX Nifty is currently trading at 10188.90, down by 22.90 points or 0.22% after trading in a range of 10171.05 and 10229.45. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HPCL up by 2.42%, Indiabulls Housing Finance up by 2.20%, Yes Bank up by 2.12%, Indusind Bank up by 1.74% and Mahindra & Mahindra up by 1.46%. On the flip side, Tech Mahindra down by 3.33%, Wipro down by 2.19%, ONGC down by 1.69%, Hindalco down by 1.61% and Eicher Motors down by 1.59% were the top losers.

All the Asian markets were trading in red; Nikkei 225 decreased 96.29 points or 0.45% to 21,292.29, Hang Seng was down by 71.89 points or 0.24% to 30,021.49, Taiwan Weighted dipped 66.74 points or 0.61% to 10,821.53, Shanghai Composite shed 28.44 points or 0.9% to 3,134.73, Jakarta Composite decreased 25.41 points or 0.41% to 6,215.16, FTSE Bursa Malaysia KLCI dropped 4.75 points or 0.26% to 1,853.60 and KOSPI Index was down by 1.73 points or 0.07% to 2,442.43.