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Domestic indices trade firm in early deals after gap-up opening
Aug-02-2021

Indian equity benchmarks made gap-up opening on Monday tracking positive trend in Asian peers. Markets are trading firm with gains of over half a percent each in early deals on the back of buying in all the sector indices led by Realty, Consumer Durables and Energy. Sentiments got a boost as the goods and services tax (GST) collection recovered to a three-month high in July, exceeding the Rs 1.1 trillion-mark, as economic activity resumed after most states eased Covid-19 restrictions. Adding more optimism, the government data showed that the output of eight core sectors grew 8.9 per cent in June, mainly due to a low base effect and uptick in production of natural gas, steel, coal and electricity. Meanwhile, foreign portfolio investors (FPIs) pulled out a net Rs 6,105 crore from the Indian capital markets so far in the ongoing financial year amid the pandemic and resultant restrictions in many parts of the country. Investors are eyeing the Manufacturing PMI is slated to be out later in the day. 

Most of the Asian markets were trading higher ignoring the broadly negative cues from Wall Street on Friday as traders are optimistic about a faster pace of the global economic recovery from the pandemic, with improving manufacturing data reported in most major markets. However, the upside is limited amid continued concerns about the rapid spread of the highly contagious coronavirus variants in the region. Back home, the power stocks were buzzing with power ministry data showing that India's power consumption grew nearly 12 per cent in July to 125.51 billion units (BU) and returned to pre-pandemic level mainly due to easing of lockdown curbs and delayed monsoon. Auto stocks were in limelight reacting to their monthly sales numbers. In scrip specific development, HDFC and Punjab National Bank were in focus ahead of their quarterly results.

The BSE Sensex is currently trading at 52896.92, up by 310.08 points or 0.59% after trading in a range of 52840.58 and 52956.39. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.81%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Realty up by 2.74%, Consumer Durables up by 1.07%, Energy up by 1.06%, Industrials up by 1.04%, Oil & Gas up by 0.94%, while there was no loser.

The top gainers on the Sensex were Axis Bank up by 1.80%, Titan Company up by 1.74%, Indusind Bank up by 1.33%, Maruti Suzuki up by 1.11% and Reliance Industries up by 1.06%. On the flip side, Tech Mahindra down by 0.56%, Power Grid Corp down by 0.20%, HCL Technologies down by 0.11% and Bajaj Finance down by 0.11% were the top losers.

Meanwhile, The Controller General of Accounts (CGA) has said the central government's fiscal deficit stood at Rs 2.74 trillion or 18.2 per cent of the full year's Budget estimate at the end of June. The fiscal deficit at the end of June 2020 was 83.2 per cent of the Budget Estimates (BE) of 2020-21 at Rs 6.62 trillion, after a fall in tax receipts due to pandemic lockdown that led to the worst recession in seven decades.

In absolute terms, the fiscal deficit was at Rs 2,74,245 crore at the end of June. For the current financial year, the government expects the fiscal deficit at 6.8 per cent of GDP or Rs 15,06,812 crore. The fiscal deficit or the gap between expenditure and revenue for 2020-21 was 9.3 per cent of the Gross Domestic Product (GDP), better than 9.5 per cent projected in the revised estimates in the Budget in February.

As per CGA data, the government received Rs 5.47 trillion (27.7 per cent of corresponding BE 2021-22 of total receipts) up to June 2021. The amount comprises Rs 4.12 trillion of tax revenues, Rs 1.27 trillion of non-tax revenues and Rs 7,402 crore of non-debt capital receipts. The receipts were 6.8 per cent of BE at the end of June 2020. Non-debt capital receipts consists of recovery of loans worth Rs 3,406 crore and disinvestment proceeds of Rs 3,996 crore.

Further, Rs 1,17,524 crore was transferred to state governments as devolution of share of taxes by the Government of India up to June 2021. At the end of June, CGA said that total expenditure incurred by the government was Rs 8.21 lakh crore (23.6 per cent of corresponding BE 2021-22). Out of the total amount, Rs 7.10 lakh crore was on revenue account and Rs 1.11 lakh crore was on capital account. Out of the total revenue expenditure, Rs 1.84 trillion was for interest payments and about Rs 1 trillion was on account of major subsidies.

The CNX Nifty is currently trading at 15863.10, up by 100.05 points or 0.63% after trading in a range of 15834.65 and 15876.90. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 3.00%, Britannia Industries up by 2.70%, SBI Life Insurance up by 2.22%, Adani Ports & SEZ up by 2.06% and Tata Consumer Products up by 1.95%. On the flip side, UPL down by 2.21%, Tech Mahindra down by 0.64%, Wipro down by 0.54%, Cipla down by 0.35% and Power Grid Corp down by 0.18% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 jumped 527.01 points or 1.93% to 27,810.60, Hang Seng surged 273.87 points or 1.05% to 26,234.90, Taiwan Weighted rose 119.74 points or 0.69% to 17,367.15, KOSPI gained 7.50 points or 0.23% to 3,209.82, Jakarta Composite added 2.11 points or 0.03% to 6,072.15 and Shanghai Composite was up by 50.95 points or 1.50% to 3,448.31, while Straits Times fell 8.80 points or0.28% to 3,158.14.
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