Benchmarks trade in green ahead of interim budget

Indian equity benchmarks made an optimistic start and are trading in green in early deals on Friday ahead of interim budget 2019. There are expectations that Budget may focus on an income support scheme for distressed farmers who have seen their incomes stagnate because of plunging prices, barely enough to pay for loans and input costs. Traders are getting encouragement with the finance ministry’s statement that revenue collection from Goods and Services Tax (GST) witnessed a substantial jump, crossing Rs 1 lakh crore in January from Rs 94,726 crore in December. It said this increase has been achieved despite various tax relief measures implemented by the GST Council to lower the tax burden on the consumers. Meanwhile, the government revised the Gross Domestic Product (GDP) growth rates by 110 basis points from 7.1 per cent to 8.2 per cent for 2016-17 and by 50 basis points from 6.7 per cent to 7.2 per cent for fiscal 2017-18.

Global cues too remained supportive with most of the Asian markets trading in green at this point of time on the back of optimism on the US-China trade front. The US markets ended mostly higher on Thursday as strong earnings and a Federal Reserve indicating it will pause rate hikes caused boosted investors sentiments.

Back home, auto sector stocks remained in action, reacting to their monthly sales numbers. Aluminium industry stocks remained in focus with Union Mines Secretary Anil Mukim’s statement that the Indian aluminium industry must slash production costs and raise output to tackle the global downturn. In scrip specific developments, Escorts surged with Agri Machinery Segment reporting 12.7% growth in tractor sales in January and   Bharti Airtel shined despite losing 5.70 crore mobile users in December 2018.

The BSE Sensex is currently trading at 36337.72, up by 81.03 points or 0.22% after trading in a range of 36261.95 and 36387.84. 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 0.33%.

The top gaining sectoral indices on the BSE were Telecom up by 1.33%, Auto up by 1.07%, Capital Goods up by 0.78%, FMCG up by 0.62% and Consumer Discretionary Goods & Services was up by 0.62%, while Metal down by 4.37%, Basic Materials down by 1.47%, Bankex down by 0.33%, Oil & Gas down by 0.17% and Consumer Durables was down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 3.31%, Bharti Airtel up by 1.66%, HCL Tech. up by 1.65%, HDFC up by 1.42% and Tata Motors up by 1.27%. On the flip side, Vedanta down by 17.82%, ICICI Bank down by 1.35%, ONGC down by 1.20%, Sun Pharma down by 1.06% and Tata Steel down by 0.61% were the top losers.

Meanwhile, the government has revised India’s gross domestic product (GDP) growth rate upwards by 50 basis points to 7.2 per cent from 6.7 per cent for fiscal 2017-18 and by 110 basis points to 8.2 per cent from 7.1 per cent for 2016-17. As per the Central Statistics Office (CSO) data, real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17. Earlier, the CSO in its advance estimate had pegged the GDP growth rate for 2018-19 at 7.2 per cent.

The CSO said the First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on May 31, 2018. The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17.

During 2017-18, the growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

The CNX Nifty is currently trading at 10856.05, up by 25.10 points or 0.23% after trading in a range of 10835.85 and 10872.15. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 4.85%, Bharti Airtel up by 2.81%, Eicher Motors up by 2.07%, Tata Motors up by 2.01% and HCL Tech up by 1.82%. On the flip side, Vedanta down by 16.52%, JSW Steel down by 1.53%, ICICI Bank down by 1.22%, Hindalco down by 1.06% and ONGC down by 0.88% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 rose 35.69 points or 0.17% to 20,809.18, Straits Times jumped 7.10 points or 0.22% to 3,197.27, KOSPI gained 2.98 points or 0.14% to 2,207.83, Jakarta Composite increased 30.75 points or 0.47% to 6,563.72, Shanghai Composite was up by 20.00 points or 0.77% to 2,604.57. On the flip side, Hang Seng was down by 48.04 points or 0.17% to 27,894.43.