Benchmarks trade jubilantly in early deals

Indian equity benchmarks made an optimistic start and are trading jubilantly in early deals with frontline gauges recapturing their crucial 36,200 (Sensex) and 10,900 (Nifty) levels. Sentiments remained upbeat after the US Federal Reserve chairman Jerome Powell reinforced the US central bank's recent shift towards a more patient approach on policy in the face of a slowing economy. Traders shrugged off the government data showing that fiscal deficit touched 121.5 percent of the full-year revised target of Rs 6.34 lakh crore at the end of January on account of lower revenue collections. The fiscal deficit, or the gap between the government's expenditure and revenue, stood at Rs 7.70 lakh crore during April-January of the current financial year ending March. At the end of January 2018, the deficit was 113.7 percent of the Revised Estimate (RE).

Global cues too remained supportive with most of the Asian counters are trading in green at this point of time, as investors watch the second summit between President Donald Trump and North Korean leader Kim Jong Un in Vietnam. The US markets ended in red on Tuesday as investors digested the release of weaker-than-expected Home Depot earnings, mixed economic data and testimony from the top-ranked Federal Reserve official.

Back home, banking sector stocks remained buzzing with the RBI stating that Allahabad Bank, Corporation Bank and Dhanlaxmi Bank have been taken out of the Prompt Corrective Action (PCA) framework. Bank of India (BoI), Bank of Maharashtra (BoM) and Oriental Bank of Commerce (OBC) were taken out of PCA framework on January 31 after infusion of capital in these banks. In scrip specific developments, Bharat Financial Inclusion jumped on completing eighth Direct Assignment transaction in FY19 and Sterlite Technologies edged higher on unveiling integrated Digital Reinvention portfolio for CSPs.

The BSE Sensex is currently trading at 36287.58, up by 313.87 points or 0.87% after trading in a range of 36129.66 and 36299.74. There were 28 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.33%, while Small cap index was up by 1.50%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.79%, Industrials up by 1.64%, Basic Materials up by 1.55%, Auto up by 1.54% and Realty was up by 1.54%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Sun Pharma up by 2.90%, Bajaj Auto up by 2.47%, Yes Bank up by 2.40%, Larsen & Toubro up by 1.94% and Axis Bank up by 1.85%. On the flip side, HCL Tech down by 0.34%, Kotak Mahindra Bank down by 0.11% and TCS down by 0.03% were the top losers.

Meanwhile, with lower revenue collections, the Controller General of Accounts (CGA) in its latest data showed that the central government’s fiscal deficit has widened and touched 121.5% of the full-year revised target of Rs 6.34 lakh crore at the end of January. The fiscal deficit, or the gap between the government's expenditure and revenue, stood at Rs 7.70 lakh crore during April-January of the current financial year ending March. At the end of January 2018, the deficit was 113.7% of the Revised Estimate (RE).

As per the CGA data, the revenue receipts of the government totalled Rs 11.81 lakh crore or 68.3% of RE till January in 2018-19, compared with 72.8% during the same period last fiscal. The government expects to mop up revenue of Rs 17.29 lakh crore during the current fiscal, from Rs 17.25 lakh crore budgeted originally. Tax revenue was 68.7% of RE, compared with 76.5% in the comparable period of the previous year.  On the expenditure front, the data showed that the total expenditure of the government at January-end was Rs 20.01 lakh crore or 81.5% of RE. The total expenditure for the current fiscal has been raised to Rs 24.57 lakh crore in the RE, from the budgeted Rs 24.42 lakh crore.

The government had budgeted to cut the fiscal deficit to 3.3% of Gross Domestic Product (GDP) or Rs 6.24 lakh crore in 2018-19, from 3.53% in the previous financial year. However, the fiscal deficit was revised upwards marginally to 3.4% of GDP or over Rs 6.34 lakh crore in the Interim Budget 2019-20, on account of additional outlay of Rs 20,000 crore for funding income scheme for small farmers.

The CNX Nifty is currently trading at 10919.45, up by 84.15 points or 0.78% after trading in a range of 10875.10 and 10921.60. There were 42 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 2.96%, Yes Bank up by 2.48%, Bajaj Auto up by 2.27%, Axis Bank up by 2.07% and Indiabulls Housing up by 2.02%. On the flip side, Wipro down by 2.26%, Bharti Infratel down by 0.75%, HCL Tech down by 0.48%, TCS down by 0.16% and Kotak Mahindra Bank down by 0.15% were the top losers.

Most of the Asian counters are trading in green; Nikkei 225 jumped 105.10 points or 0.49% to 21,554.49, Straits Times gained 17.70 points or 0.54% to 3,279.36, Hang Seng rose 138.77 points or 0.48% to 28,910.83, KOSPI added 4.99 points or 0.22% to 2,231.59 and Shanghai Composite was up by 23.25 points or 0.79% to 2,964.77.

On the flip side, Taiwan Weighted decreased 29.67 points or 0.29% to 10,361.88 and Jakarta Composite was down by 12.54 points or 0.19% to 6,528.41.