Sensex, Nifty remain lower in late morning session

Indian equity benchmarks remained lower in late morning session, with both Sensex and Nifty trading in red. Negative cues from other Asian markets impacted sentiments over the Dalal Street. Traders got worried, after Indian manufacturing activity fell back into decline in the month of June, as the intensification of the pandemic and strict containment measures negatively impacted on demand. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - fell to 48.1 in June as against 50.8 in May.

Besides, the Controller General of Accounts (CGA) in its latest data has showed that the central government's fiscal deficit stood at Rs 1.23 lakh crore or 8.2 per cent of the full year's Budget Estimate (BE) at end-May 2021. The fiscal deficit at the end of May 2020 was 58.6 per cent of the BE of 2020-21. In absolute terms, the fiscal deficit was Rs 1,23,174 crore at end-May 2021. The government expects the fiscal deficit for 2021-2022 at 6.8 per cent of Gross Domestic Product (GDP) or Rs 15,06,812 crore.

On the global front, Asian markets were trading mostly in red, after South Korea's industrial production declined at a softer pace in May. The data from Statistics Korea said that industrial production fell a seasonally adjusted 0.7 percent month-on-month in May, following a 1.6 percent decline in April. Manufacturing output decreased 1.0 percent monthly in May, following a 1.6 percent fall in the previous month.

The BSE Sensex is currently trading at 52381.44, down by 101.27 points or 0.19% after trading in a range of 52342.02 and 52638.50. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.03%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Auto up by 0.86%, Consumer DDiscretionary up by 0.66%, Realty up by 0.32%, FMCG up by 0.25% and Healthcare up by 0.20%, while Power down by 1.19%, Telecom down by 0.56%, TECK down by 0.47%, Utilities down by 0.46% and IT down by 0.39% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 2.10%, Mahindra & Mahindra up by 0.80%, SBI up by 0.66%, Sun Pharma up by 0.62% and Kotak Mahindra Bank up by 0.56%. On the flip side, Larsen & Toubro down by 1.07%, Ultratech Cement down by 0.90%, Infosys down by 0.85%, Tech Mahindra down by 0.80% and HDFC Bank down by 0.76% were the top losers.

Meanwhile, Controller General of Accounts (CGA) in its latest data has showed that the central government's fiscal deficit stood at Rs 1.23 lakh crore or 8.2 per cent of the full year's Budget Estimate (BE) at end-May 2021. The fiscal deficit at the end of May 2020 was 58.6 per cent of the BE of 2020-21. In absolute terms, the fiscal deficit was Rs 1,23,174 crore at end-May 2021. The government expects the fiscal deficit for 2021-2022 at 6.8 per cent of Gross Domestic Product (GDP) or Rs 15,06,812 crore.

The fiscal deficit or the gap between expenditure and revenue for 2020-21 was 9.3 per cent of the GDP, an improvement over 9.5 per cent projected in the revised estimates in the budget in February. As per the CGA data, the Centre received Rs 3,54,787 crore (17.95 per cent of corresponding BE 2021-22 of total receipts) for May 2021. This comprised Rs 2.33 lakh crore tax revenue (net to Centre), Rs 1.16 lakh crore of non-tax revenue and Rs 4,810 crore of non-debt capital receipts. Non debt capital receipts consist of recovery of loans Rs 815 crore and disinvestment proceeds of Rs 3,995 crore.

The total receipts were 2 per cent of the BE in the corresponding period last fiscal. It further said Rs 78,349 crore was transferred to state governments as Devolution of Share of Taxes by Government of India up to May, which is Rs 13,728 crore lower than the previous year. Total expenditure incurred by the Centre was Rs 4,77,961 crore (13.72 per cent BE), out of which Rs 4.15 lakh crore was on revenue account and Rs 62,961 crore on capital account. Out of the total revenue expenditure, Rs 88,573 crore was towards interest payments and Rs 62,664 crore on account of major subsidies.

The CNX Nifty is currently trading at 15693.50, down by 28.00 points or 0.18% after trading in a range of 15685.35 and 15755.55. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.02%, Tata Motors up by 1.47%, Hero MotoCorp up by 1.02%, Mahindra & Mahindra up by 0.93% and Hindalco up by 0.91%. On the flip side, Wipro down by 1.32%, Shree Cement down by 1.22%, BPCL down by 1.03%, Larsen & Toubro down by 1.02% and Ultratech Cement down by 0.94% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 118.43 points or 0.41% to 28,673.10, KOSPI fell 14.20 points or 0.43% to 3,282.48, Jakarta Composite lost 5.45 points or 0.09% to 5,980.04 and Shanghai Composite declined 2.65 points or 0.07% to 3,588.55. On the flip side, Straits Times advanced 1.50 points or 0.05% to 3,131.96 and Taiwan Weighted strengthened 6.10 points or 0.03% to 17,761.56.