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Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

All that happened in the markets today

SI Reporter  |  New Delhi 

MARKETS LIVE: Budget 2018, economic survey, sensex, Nifty, Asian Markets

Benchmark indices ended at record highs on Monday after a government report predicted growth would accelerate in the coming fiscal year, but bonds fell after it also recommended slowing down the move toward lower fiscal deficits.

The released earlier in the day projected economic growth would be 7.0-7.5% in the year starting in April, up from a projected 6.75% for the current fiscal year.

But the survey also noted “a pause in general government fiscal consolidation relative to 2016-17 cannot be ruled out,” sending benchmark 10-year bond yields up 4 basis points to 7.52% from its previous close.

The survey, an annual report the health of the economy, comes ahead of the release on Thursday of the federal budget for the year to begin on April 1.

It added that, FY18 gross value added is likely to grow at 6.1% in FY18 against 6.6% in FY17 and Industry growth is likely to be at 4.4% for the current fiscal year.

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Sectoral Trend

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Sensex top gainers and losers

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Markets at Close   Benchmark indices ended at record highs on Monday after a government report predicted growth would accelerate in the coming fiscal year, but bonds fell after it also recommended slowing down the move toward lower fiscal deficits.   The S&P BSE Sensex ended at 36,283, up 232 points while the broader Nifty50 index settled at 11,130 up 60 points

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Economic Survey 2018: Home sales at 5-year low, FDI needed for revival   India’s real estate sector hit rock bottom, falling to a five-year low in 2017-18, and a change in market sentiment to attract more foreign direct investment would be required for a revival of the beleaguered sector, the Economic Survey 2017-18 notes.   While residential real estate market saw sales of only 58,000 units in the first half of 2017, new home sales fell to a five-year low of about 101,850 units during this period. Sales during the first half declined by over 38% when compared with the same period a year earlier, while unit launches fell by over 56% during the same period, the Survey said. READ MORE

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Hold your horses: Equities are expensive but reasons are not enough to exit   The stock market rally since the beginning of 2016 has been extraordinary. At a time when the economy was reeling from extreme stress after the note ban, the stock market started rallying, with foreign investors buying stocks of over Rs 300 billion in March last year, the highest they have bought ever in a single month.   The goods and services tax (GST) regime, which started in July, disrupted the economy further, but the stock markets were in a zone of their own as money kept coming. CLICK HERE FOR FULL STORY

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

HDFC hits new high post Q3 results   Housing Development Finance Corporation (HDFC) has moved higher to its new high of Rs 1,980, up 4% on BSE, after the mortgage lender reported a standalone net profit of Rs 56.7 billion in December 2017 quarter (Q3FY18), which include exceptional gain of Rs 36.75 billion.   The company had posted profit of Rs 17.01 billion during the same quarter last fiscal. READ MORE Earnings impact  

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

MFs raise bets, foreign institutional investors trim exposure in BSE 500   The average shareholding of mutual funds (MFs) in the BSE 500 companies went up by 38 basis points (bps) during the December quarter, even as foreign institutional investors (FIIs) trimmed theirs by 16 bps, Capitaline data showed. In the three months to December, MFs had invested Rs 240 billion in domestic stocks, whereas FII buying was relatively muted at Rs 83 billion.   MF ownership in Indian companies has nearly doubled since 2014, thanks to huge consistent buying. FIIs, biggest non-promoter shareholders, have seen their holdings dip during the same period. READ MORE

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Kotak Securities on IT sector   That CY2018 will be better than CY2017 seems to be generally accepted and shows up in IT sector re-rating. The magnitude of acceleration will determine stock returns from hereon; 2-3% higher growth in FY2019 is already baked into the stock prices. Path to higher acceleration 4-5% can lead to further upsides; however visibility on the same is not clear. It is easier to predict the direction of growth than the magnitude of acceleration in our view. We prefer Infosys and Tech M as expectations embedded in the current valuations are low   (Source: Kotak report)

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Morgan Stanley remains 'overweight' on India   We are also overweight (OW) on India, especially large corporate lenders, since we expect asset quality concerns to abate over the next 12 months. This is likely to drive rerating – ICICI is best placed. Korea is the other OW; we continue to see earnings upgrades and ROE recovery – multiples still have room to expand. We are underweight (UW) on Australia and ASEAN – the exception is DBS, which is geared to Asian recovery   (Source: Morgan Stanley report)

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Market check Index Current Pt. Change % Change   S&P BSE SENSEX 36,287.47 +237.03 +0.66   S&P BSE SENSEX 50 11,609.00 +69.19 +0.60   S&P BSE SENSEX Next 50 36,634.29 -108.78 -0.30   S&P BSE 100 11,545.50 +52.40 +0.46   S&P BSE Bharat 22 Index 3,864.63 -20.62 -0.53 (Source: BSE)

Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

Share of digital services in IT exports to double in 3 years: Crisil   CRISIL expects the share of digital services1 in Indian’s information technology (IT) exports to double to ~30% by fiscal 2020, as the segment grows at a healthy 30-35% a year. This will be supported by re-skilling of employees and increased mergers & acquisitions (M&As) by Indian IT players, seeking to enhance the digital pie in revenues.   On the other hand, the share of traditional IT services, which account for the bulk of the $140 billion-a-year Indian IT industry, will decline given the flaccid 2-4% annual growth currently. Overall IT revenue growth is expected at ~8% per annum until fiscal 2020, driven largely by digital services.

First Published: Mon, January 29 2018. 15:31 IST
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Markets end at record high, Nifty above 11,100 as FY19 GDP seen at 7-7.5%

All that happened in the markets today

Benchmark indices ended at record highs on Monday after a government report predicted growth would accelerate in the coming fiscal year, but bonds fell after it also recommended slowing down the move toward lower fiscal deficits.

The released earlier in the day projected economic growth would be 7.0-7.5% in the year starting in April, up from a projected 6.75% for the current fiscal year.

But the survey also noted “a pause in general government fiscal consolidation relative to 2016-17 cannot be ruled out,” sending benchmark 10-year bond yields up 4 basis points to 7.52% from its previous close.

The survey, an annual report the health of the economy, comes ahead of the release on Thursday of the federal budget for the year to begin on April 1.

It added that, FY18 gross value added is likely to grow at 6.1% in FY18 against 6.6% in FY17 and Industry growth is likely to be at 4.4% for the current fiscal year.

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