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Sensex slips 162 points, Nifty below 10,500 on fiscal deficit concerns

All that happened in the markets today.

Image SI Reporter New Delhi
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The benchmark indices ended lower on Wednesday on  fiscal deficit concerns.

The S&P BSE Sensex ended at 34,184, down 162 points while the broader Nifty50 index settled at 10,493, down 61 points.

In economic data released today, India reported a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March.

Meanwhile, growth in India's factory activity slowed to a four-month low in February as new orders eased and weighed on output after manufacturers raised prices at the fastest pace in a year, a business survey showed on Wednesday.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 52.1 in February from January's 52.4 and was below the 52.8 expected in a Reuters poll.

The market participants will now be looking forward to the Gross Domestic Product (GDP) data to be released later in the day today.

In the global markets, Asian shares faltered on Wednesday and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent, on track for a second straight day of losses. Japan's Nikkei eased 0.2 per cent while South Korea's KOSPI index ticked higher. Australian shares slipped 0.4 per cent.

New Federal Reserve Chair Jerome Powell noted in his semi-annual testimony on Tuesday that the US economy was strong, inflation was ticking higher and that the global backdrop was better than in December.

(with Reuters inputs)
4:17 PM

MARKET COMMENT: Jayant Manglik, President, Religare Broking

Indian market saw another lackluster trading session amid volatility, taking cues from global markets and dismal PMI data. The Nifty index ended down 0.6% led by selling in Banking, Metal and Capital Goods stocks. The broader market indices outperformed the frontline index. On global front, Asian and Europeans markets faltered and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the US.
 
We expect the Indian equities to consolidate in the coming sessions without any major triggers in the near term. Also global developments could lead to market volatility in the near term. However, any further correction at this juncture should be considered as a healthy buying opportunity for investors in quality companies with strong financials and bright outlook. Meanwhile traders should remain cautious and keep their positions hedged, as volatility is likely to remain high in the coming sessions
 
3:41 PM

Sectoral Watch Private banks fall, Nifty Bank ends 1% lower

3:39 PM

Sectoral watch Nifty PSU Banks pare losses, ends in green

3:34 PM

Sectoral Trend

3:33 PM

Sensex top gainers and losers

3:33 PM

Markets at Close
 
The S&P BSE Sensex ended at 34,184, down 162 points while the broader Nifty50 index settled at 10,492, down 61 points.
3:27 PM

Infosys gains for second straight day in weak market

Infosys was up nearly 4% to Rs 1,189 on Wednesday in intra-day trade, extending its Tuesday’s 0.6% gain on the BSE in otherwise weak market. The stock trading close to its 52-week high of Rs 1,220 touched on January 24, 2018 in intra-day trade. READ MORE
3:23 PM

April-January fiscal deficit touches 113.7% of full-year target
 
India reported on Wednesday a fiscal deficit of Rs 6.77 trillion ($103.72 billion) for April-January or 113.7 per cent of the target originally set for the fiscal year that ends in March.
 
Net tax receipts in the first ten months of 2017/18 fiscal year were Rs 9.7 trillion, government data showed. READ MORE
3:14 PM

Elara Capital on Strides Shasun
 
Given corporate actions over FY17-18, the company will now focus on the B2C model, which remains profitable with improved leverage. It has multiple drivers, comprising the US, Australia & EU generics, branded formulations across Africa and institutional supplies (HIV & malaria). 
 
We see a pickup in profitability, aided by niche launches in the US, healthy institutional supplies and continued momentum in the Australia business. Recommend Buy with a target price of Rs 1,025 on 18x December 2019E P/E and Rs 70 for its API business.
3:14 PM

PNB scam throws long shadow on diamond industry in Surat, deals drop 10%
 
The Nirav Modi-Mehul Choksi scam has thrown a long shadow on the diamond polishing and trading industry, with its hub in Surat, Gujarat. Deals are down 8-10 per cent since the incident came to the fore on February 14. “Diamantaires do not want to take chances. Also, now, banks are tight-fisted about disbursing working capital, especially to diamantaires. This has slowed business by at least 10 per cent,” said Kirti Shah, a Surat-based diamond polisher and trader. READ MORE
3:00 PM

Market Check
S&P BSE Sensex 34,259.90 Up -0.25%
 
Nifty 50 10,515.45 Up -0.37%
 
S&P BSE 200 4,600.39 Up -0.24%
 
Nifty 500 9,273.65 Up -0.31%
 
S&P BSE Mid-Cap 16,574.26 Up -0.16%
 
S&P BSE Small-Cap 18,112.52 Up 0.12%

2:58 PM

FISCAL DEFICIT: April-January revenue spending at Rs 15.75 trillion, at 81% of FY18 target of Rs 19.45 trillion
2:56 PM

FISCAL DEFICIT: April- January capital spending at Rs 2.64 trillion, at 96.9% of FY18 target of Rs 2.73 trillion.
2:54 PM

FISCAL DEFICIT: April-January tax revenue at Rs 9.71 trillion, at 76.5% of FY18 target of Rs 12.69 trillion
2:52 PM

FISCAL DEFICIT: Apr-Jan total spending at Rs 18.39 trillion, at 83% of FY18 target of Rs 22.17 trillion
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First Published: Feb 28 2018 | 3:30 PM IST

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