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Benchmarks trade slightly lower in early deals
Jun-24-2019

Indian equity benchmarks have made a slightly positive start on Monday but failed to hold gains and slipped in to red territory in early deals, with Sensex and Nifty losing around 0.25% each. Traders were cautious with the Finance Ministry’s report that government's total liabilities reached Rs 84.68 lakh crore at the end of March 2019, up 1.5 per cent over the preceding quarter. The total liabilities stood at Rs 83.40 lakh crore at end-December 2018. Some concern also came in with FICCI’s report that the outlook for the country's manufacturing sector in the April-June quarter of the current fiscal has moderated as only 41 per cent of respondents in its survey expected higher output growth during the ongoing quarter compared to 54 per cent in the January-March quarter. However, down-side remain capped with report that investments in the Indian capital market through participatory notes increased by nearly Rs 1,400 crore to Rs 82,619 crore till May-end, a gain of 1.72 percent over the previous month. Also, the GST Council extended the tenure of the anti-profiteering authority by two years till November 2021 and allowed use of Aadhaar as proof for obtaining GST registration while referring tax cut on electric vehicles and their chargers to an officers' committee.

On the global front, Asian markets were trading mixed as tensions between the US and Iran lingered after the latter shot down an American surveillance drone. The US markets had closed lower on Friday amid heightened tensions between Iran and the US, but losses remain chapped as investors continue to cheer the Federal Reserve’s shift to a more dovish stance.

Back home, on the sectoral front, sugar stocks were trading mixed amid report that sugarcane arrears to farmers touched nearly Rs 19,000 crore as on June 18 of the ongoing marketing year ending September with maximum amount owed by sugar mills in Uttar Pradesh. Besides, insurance stocks were buzzing  with report that the government is exploring various consolidation options including the merger of state-owned general insurance companies with New India Assurance with a view to create synergy and unlock value. Besides, the initial public offering (IPO) of IndiaMART InterMESH opens on June 24. Through this issue, the company is offloading 4.89 million shares. The price band of the IPO, which is entirely an offer for sale (OFS), has been fixed at Rs 970 to Rs 973 per share.

The BSE Sensex is currently trading at 39097.52, down by 96.97 points or 0.25% after trading in a range of 39097.52 and 39300.02. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.31%, while Small cap index was up by 0.09%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.30%, FMCG up by 0.27%, Telecom up by 0.22%, Consumer Durables up by 0.21%, Industrials up by 0.15%, while Oil & Gas down by 1.34%, Energy down by 1.31%, Auto down by 1.09%, Consumer Disc down by 0.42%, Realty down by 0.35% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 0.70%, Indusind Bank up by 0.57%, Yes Bank up by 0.46%, TCS up by 0.44% and SBI up by 0.39%. On the flip side, Bajaj Auto down by 2.16%, Hero MotoCorp down by 1.92%, ONGC down by 1.69%, Tata Motors - DVR down by 1.63% and Reliance Industries down by 1.42% were the top losers.

Meanwhile, the Department of Expenditure (DoE) in its latest data has showed that fiscal deficit, or the gap between the government's expenditure and revenue, for the month of April was at Rs 1,57,048 crore which is 22% of the budgeted estimate for the year 2019-20, slightly lower than 24% in the same period a year ago. The figures of Review of Accounts of April of the Controller General of Accounts (CGA) stated that as a percentage to the Gross Domestic Product (GDP), the fiscal deficit is at 0.75% and revenue deficit is 0.61%. For 2019-20, the fiscal deficit has been set at 3.4% of the GDP in the interim Budget.

For the month of April, the total expenditure of the government was Rs 2,54,679 crore or 9% of budget estimate, comprising revenue expenditure of Rs 2,24,091 crore - 9% of budget estimate and capital expenditure of Rs 30,588 crore - 9% of budget estimate. Total receipts were Rs 97,631 crore - 5% of the budget estimate. Gross tax was Rs 1,21,190 crore - 5% of the budget estimate. The net tax revenue to the Centre was of the order of Rs 71,637 crore – 4% of BE after deducting devolution to states (Rs 49,544 crore) and collections under National Calamity Contingent Duty (NCCD) to be transferred to National Disaster Relief Fund (NDRF) (Rs 9 crore).

Total receipts include Net Tax Revenue to Centre (Rs 71,637 crore), Non Tax Revenue (Rs 23,293 crore) and other receipts (Rs 2,701 crore). During the month of May, the plan releases for various schemes to the tune of Rs 2,012.70 crore were made to the states. A sum of Rs 49,543.62 crore was devolved to states as their share in Central Taxes and Duties. In addition, releases of the order of Rs 3,850.57 crore were made to the states in May, as recommended by the 14th Finance Commission. NDRF allocation was Rs 788.75 crore and Post Devolution Revenue Deficit (PDRD) was Rs 2,850.57 crore.

The CNX Nifty is currently trading at 11698.20, down by 25.90 points or 0.22% after trading in a range of 11693.50 and 11754.00. There were 20 stocks advancing against 29 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Hindalco up by 1.57%, UPL up by 1.16%, Britannia Industries up by 0.88%, Bharti Airtel up by 0.71% and Indusind Bank up by 0.52%. On the flip side, Bajaj Auto down by 2.27%, Hero MotoCorp down by 2.05%, Indiabulls Housing Finance down by 1.80%, Eicher Motors down by 1.45% and ONGC down by 1.43% were the top losers.

Asian markets were trading mixed; Taiwan Weighted dropped 27.31 points or 0.25% to 10,776.46, Straits Times trembled 11.09 points or 0.33% to 3,310.31, Jakarta Composite lost 4.93 points or 0.08% to 6,310.51 and Shanghai Composite declined 2.68 points or 0.09% to 2,999.30. On the other hand, KOSPI rose 1.84 points or 0.09% to 2,127.46, Nikkei 225 surged 50.01 points or 0.24% to 21,308.65 and Hang Seng increased 64.68 points or 0.23% to 28,538.39.
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