Key indices keep head above water in noon deals

Local equity benchmarks managed to keep their head above water in noon deals with both Sensex and Nifty were trading above 55600 and 16550 marks, respectively. Traders took some solace with data showing that India's fiscal deficit stood at 6.7 percent of GDP in 2021-22 on higher tax receipts and prudent expenditure, lower than 6.9 percent estimated in the national budget tabled in February. The improved fiscal performance will reduce the extent of fiscal roll back required in the current fiscal year compared to the last. However, upside remain capped as the government data showed that India’s economic growth hit a four-quarter low of 4.1%, partly driven by base effect. The growth was 20.1%, 8.4%, and 5.4%, in the first, second and third quarters, respectively. On the global front, Asian markets were trading mostly lower following losses on Wall Street and data reminding traders that inflation shows no sign of easing.

The BSE Sensex is currently trading at 55606.01, up by 39.60 points or 0.07% after trading in a range of 55407.47 and 55791.49. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.16%, while Small cap index was up by 0.80%.

The top gaining sectoral indices on the BSE were PSU up by 0.73%, Capital Goods up by 0.66%, Industrials up by 0.62%, Bankex up by 0.51% and Metal was up by 0.43%, while Power down by 1.37%, Utilities down by 1.26%, Realty down by 0.87%, Healthcare down by 0.67% and Auto was down by 0.66% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.63%, Tata Steel up by 0.95%, HDFC up by 0.81%, Asian Paints up by 0.73% and Kotak Mahindra Bank was up by 0.69%. On the flip side, Nestle down by 2.08%, Tech Mahindra down by 1.58%, Sun Pharma down by 1.54%, Power Grid down by 1.29% and Hindustan Unilever was down by 1.05% were the top losers.

Meanwhile, India's fiscal deficit for 2021-22 improved to 6.71 per cent of the GDP over the revised budget estimate of 6.9 per cent mainly on account of higher tax realisation. Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) said that the fiscal deficit in the absolute terms was Rs 15,86,537 crore (provisional). The finance ministry in February had estimated the deficit at Rs 15,91,089 crore or 6.9 per cent of GDP.

According to the data, the tax receipts during the fiscal were at Rs 18.2 lakh crore as against the revised estimates (RE) of Rs 17.65 lakh crore. The total expenditure too was higher at Rs 37.94 lakh crore against the RE of Rs 37.7 lakh crore presented to Parliament on February 1, 2021. CGA further said the revenue deficit at the end of the fiscal was 4.37 per cent for fiscal 2021-22.

In another set of data, the CGA said the fiscal deficit during the first month of 2022-23 was 4.5 per cent of the Budget Estimate for the current fiscal. The deficit was 5.2 per cent in the year-ago period. The government expects the fiscal deficit for the current financial year at 6.4 per cent of GDP or Rs 16.61 lakh crore. In April 2022, there was a revenue surplus of Rs 591 crore. Government meets its fiscal deficit from market borrowings.

The CNX Nifty is currently trading at 16586.30, up by 1.75 points or 0.01% after trading in a range of 16537.90 and 16649.20. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.40%, NTPC up by 1.70%, Coal India up by 1.45%, Kotak Mahindra Bank up by 1.12% and HDFC Life Insurance up by 1.09%. On the flip side, Apollo Hospital down by 2.91%, Bajaj Auto down by 2.82%, Hindalco down by 2.46%, Britannia Inds down by 2.22% and Sun Pharma was down by 1.65% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 172.36 points or 0.8% to 21,242.84, Taiwan Weighted dropped 132.68 points or 0.79% to 16,675.09 and Shanghai Composite declined 16.35 points or 0.51% to 3,170.08. On the flip side, Straits Times advanced 10.88 points or 0.34% to 3,243.37 and Nikkei 225 was up 178.09 points or 0.65% to 27,457.89.