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Market Ahead, Feb 1:Benchmark indices will react to the Interim Budget 2019

Markets will react to the Interim Budget 2019 which will be presented by Finance Minister Piyush Goyal in the Parliament today.

BS Web Team  |  New Delhi 

will react to the Interim Budget 2019 which will be presented by Finance Minister Piyush Goyal in the Parliament today. Apart from this, stock specific action is likely to continue amid ongoing December quarter results season.

Among stocks, Bharti Airtel will be in focus as the company reported a 72 per cent drop in consolidated net income for the three months ended December 2018 at about Rs 86 crore amid market turbulence triggered by cut-throat competition. The net income stood at Rs 306 crore in the same period of the previous year.

Around 75 companies including State Bank of India, Dr Reddy's, Titan and Taj GVK Hotels & Resorts are slated to announce their December quarter earnings later in the day.

The on Thursday edged higher by 4 paise to 71.08 against the US dollar amid weakness in the greenback in overseas after the kept interest rate unchanged.

Economic Data

The government on Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. According to the revised gross domestic product (GDP) data, released by the Central Statistics Office (CSO), the demonetisation year, 2016-17, saw a growth rate of 8.2 per cent, the highest in the five years of the Modi government. Earlier, the growth rate was estimated at 7.1 per cent.

This apart, growth in the eight core sectors of the economy continued to tumble, crashing to an 18-month low of 2.6 per cent in December, down from the 3.4 per cent growth in November.

Global Markets

Asian shares ticked up to four-month highs on Friday on hopes the leaders from the United States and China could strike a trade deal and as the Federal Reserve appeared to have all but abandoned a plan to raise borrowing rates further.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent after a stellar 7.2 per cent gain in January. Japan’s Nikkei gained 0.5 per cent.

The Dow Jones Industrial Average slipped 0.06 per cent to end at 24,999.67, the S&P 500 gained 0.86 per cent to end at 2,704.1 points, while the Nasdaq Composite added 1.37 per cent to 7,281.74.


Govt may increase farm credit target to Rs 12 trn

The farm credit target is likely to be raised by about 10 per cent to a record Rs 12 trillion in the 2019-20 Budget to be presented on February 1, according to sources.

For the current fiscal, the government has set a credit target of Rs 11 trillion.


"The government has been increasing the credit target for the farm sector every year. This time too, the target is likely to be increased by around 10 per cent or Rs 1 trillion to Rs 12 trillion for the 2019-20 fiscal," the sources said.


The agricultural credit flow has increased consistently over the years, exceeding the target set for each fiscal. For instance, credit worth Rs 11.68 trillion was given to farmers in 2017-18, much higher than the Rs 10 trillion target set for that year, they added.

Similarly, crop loans worth Rs 10.66 trillion were disbursed in the 2016-17 fiscal, higher than the credit target of Rs 9 trillion.

Demonetisation, GST impacted jobs more than NSSO's headline numbers suggest

The real impact of demonetisation and the goods and services tax (GST) — two big economic decisions taken by the Narendra Modi-led National Democratic Alliance — on jobs has been much more than what is shown in the headline unemployment rate figures given in the National Sample Survey Office’s (NSSO's) report for 2017-18.

According to the current weekly status (CWS) approach of the NSSO’s periodic labour force survey (LFPS), the unemployment rate stood at 8.9 per cent in 2017-18. In this approach, the activity status of a person is determined on the basis of the reference period of one week.

Demonetisation, GST impacted jobs more than NSSO's headline numbers suggest

The real impact of demonetisation and the goods and services tax (GST) — two big economic decisions taken by the Narendra Modi-led National Democratic Alliance — on jobs has been much more than what is shown in the headline unemployment rate figures given in the National Sample Survey Office’s (NSSO's) report for 2017-18.

According to the current weekly status (CWS) approach of the NSSO’s periodic labour force survey (LFPS), the unemployment rate stood at 8.9 per cent in 2017-18. In this approach, the activity status of a person is determined on the basis of the reference period of one week.

First Published: Fri, February 01 2019. 07:47 IST
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