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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

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

Bonds, Stock markets, Shares, Trading

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 economic survey 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.
3:37 PM

Sectoral Trend

3:36 PM

Sensex top gainers and losers

3:33 PM

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
3:21 PM

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
3:10 PM

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
3:01 PM

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
2:45 PM

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
2:34 PM

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)
2:32 PM

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)
2:30 PM

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)
2:30 PM

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.
2:29 PM

BSE to take on rivals in commodity derivatives with lowest transaction fee
With the country’s oldest stock exchange, the Bombay Stock Exchange, starting mock trading in commodities derivatives for the first time on Monday morning, ripples are set to go around the commodity derivatives industry. This isn't only because one stock exchange is well prepared to launch commodity derivatives, but also because it plans to offer the lowest transaction charge payable by broker-members to the exchange -- one rupee per trade, irrespective of the contract value. CLICK HERE FOR FULL STORY
2:15 PM

Shakti Pumps surges 8% on strong Q3 results
Shakti Pumps (India) hit a new high of Rs 576, up 8% on BSE in noon deal, after the company reported more than four-fold jump in its consolidated net profit at Rs 167 million in October-December quarter (Q3FY18).
It had a profit of Rs 41 million in the same quarter year ago.
Operational revenue of the company during quarter under review increased by 42% to Rs 1,477 million from Rs 1,041 million the corresponding quarter of previous year. READ MORE
1:58 PM

Budget 2018: Capital gains on equities across the globe
Foreign institutional investors (FIIs) have voiced their concern on reintroduction of long-term capital gains tax on equities in the upcoming Union Budget to be announced on February 1.
Currently, long term capital gains (LTCG) on sale of listed securities is exempt from tax. Simply put, LTCG is profit on sale of shares listed on a stock exchange platform after a holding period of one year or more. On the other hand, short term capital gains (STCG), is the profit on sale of shares held for less than 12 months, and is taxed at a flat rate of 15%. Besides, these all stock market transactions also attract securities transaction tax (STT) in a range between 0.017% and 0.125%. READ MORE
1:45 PM

Markets see best pre-budget rally in 12 years
With a gain of 6.7% thus far in January 2018, the S&P BSE Sensex has seen the best run in one month prior to the Union Budget presentation in over a decade. The last best performance was way back in February 2006, when the index had gained around 5%, data show.
The recent rally, analysts say, comes on the back of a liquidity super-cycle and buoyant global equity markets and not just budget expectations that are getting frontloaded ahead of the event. READ MORE

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First Published: Jan 29 2018 | 3:31 PM IST

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