Markets have strengthened further in the early noon
trade and the benchmark indices are trading near the high points of the
day, undeterred by a powerful blast at the Delhi High Court near Gate no
5. As per reports the blast has claimed 9 lives and around 50 people
were injured in the incident. Back on street the markets after some
initial floundering are gaining strength, largely supported by the gains
in rate sensitive banking and realty counters. Banking stocks have
surged after the Reserve Bank of India (RBI) governor Duvvuri Subbarao
said that the minimum mandatory amount of deposits that banks need to
set aside to invest in government bonds need to come down gradually. At
this point of time all the 13 sectoral indices on the BSE are trading in
green. Though the defensive sector FMCG was getting a cold shoulder by
the investors, the auto sector too was witnessing selective profit
booking. Today the beaten down JP Associates shares have taken the lead
among frontliners after a buzz that the company is mulling to dilute up
to 26% in the cement business and is looking for a partner.
The BSE Sensex capturing 219.30 points or 1.30% is trading at 17,082.11. The index has so far touched a high and low of 17,083.88 and 16,922.31 respectively. There were 25 stocks advancing against 5 declining one's on the index.
The broader indices too enticed further gains in line with the larger counterparts; the BSE Mid cap and Small cap indices surged 1.32% and 1.50% respectively.
Although buying was witnessed across the board, however, Bankex up by 2.36%, Power up by 1.79%, PSU up by 1.77%, Capital Goods and Realty were up by 1.75% featured amongst the top performers on the BSE Sectoral front.
The top gainers on the Sensex were Jaiprakash Associates up by 6.04%, Tata Power up by 3.81%, SBI up by 3.03%, HDFC Bank up by 2.89% and Coal India up by 2.54%.
On the flip side, Hero Motocorp down by 0.57%, M&M down by 0.31% ITC down by 0.22%, Tata Motors down by 0.18% and Sun Pharma down by 0.15% were the top losers on the Sensex.
Meanwhile, the government has expressed confidence that it would be able to meet its fiscal budget deficit target of 4.6% of the Gross Domestic Product (GDP) in the current financial year despite the uncertainties in global economy and slowdown in domestic economy expansion.
In the quarterly review of government's finance, finance minister Pranab Mukherjee said "First quarter trends reflect that the government would be able to meet the deficit targets as set in the Budget Estimates.'
During 2010-11, government was able to control its fiscal deficit to 4.7% of GDP. However, for the current financial year, experts have the view that meeting the fiscal deficit target for the current financial year would be difficult due to unfavorable conditions on domestic and global fronts.
The numbers of factors such as lower revenue generation because of the slowdown, and increasing expenditure on account of increasing oil marketing companies' losses are putting pressure on the government financial health. Economist and analysts from the private sector expects fiscal deficit numbers to be in between 5.1% to 5.8% for current fiscal year.
During the April to July 2011, the fiscal deficit stood at 55% of the budgetary target. In the April to June 2011 fiscal deficit was around 39.4% of the budget estimate for 2011-12 from 10.5% of budget estimate in April to June 2010. But the finance ministry says that the fiscal deficit for the first quarter of 2011-12 is not comparable to the last fiscal years due to record gains from the 3G auctions.
'Better performance during 2010-11 may be seen in the context of one time receipts of about 1.3% of GDP during the first quarter from the auction of 3G and BWA spectrum,' the statement said. The ministry also noted that the high tax refunds for revenue falling short of the estimates. In order to clear pending tax refunds, in the first quarter, government had paid out around Rs 74,000 crore.
The high fiscal deficit during April to June 2011-12 is because of 54.5% decline in revenue receipts and 7.8 increase in expenditure over the last year. The revenue receipts although lower than last year, are in line with the five-year moving average at 11.5% of budget estimates, the finance ministry said.
The S&P CNX Nifty is currently trading at 5,136.65, higher by 72.35 points or 1.43%. The index has touched a high and low of 5,137.20 and 5,076.30 respectively. There were 44 stocks advancing against 5 declining one's on the index, while one remained unchanged.
The top gainers of the Nifty were Jaiprakash Associates up by 6.11%, ACC up by 5.61%, Ambuja Cement up by 4.34%, Tata Power up by 4.34% and RCOM up by 4.21%.
On the flip side, ITC down by 0.59%, Hero Motocorp down by 0.44%, M&M down by 0.31%, Sun Pharma down by 0.21%, and Dr Reddy down by 0.07% were the major losers on the index.
The BSE Sensex capturing 219.30 points or 1.30% is trading at 17,082.11. The index has so far touched a high and low of 17,083.88 and 16,922.31 respectively. There were 25 stocks advancing against 5 declining one's on the index.
The broader indices too enticed further gains in line with the larger counterparts; the BSE Mid cap and Small cap indices surged 1.32% and 1.50% respectively.
Although buying was witnessed across the board, however, Bankex up by 2.36%, Power up by 1.79%, PSU up by 1.77%, Capital Goods and Realty were up by 1.75% featured amongst the top performers on the BSE Sectoral front.
The top gainers on the Sensex were Jaiprakash Associates up by 6.04%, Tata Power up by 3.81%, SBI up by 3.03%, HDFC Bank up by 2.89% and Coal India up by 2.54%.
On the flip side, Hero Motocorp down by 0.57%, M&M down by 0.31% ITC down by 0.22%, Tata Motors down by 0.18% and Sun Pharma down by 0.15% were the top losers on the Sensex.
Meanwhile, the government has expressed confidence that it would be able to meet its fiscal budget deficit target of 4.6% of the Gross Domestic Product (GDP) in the current financial year despite the uncertainties in global economy and slowdown in domestic economy expansion.
In the quarterly review of government's finance, finance minister Pranab Mukherjee said "First quarter trends reflect that the government would be able to meet the deficit targets as set in the Budget Estimates.'
During 2010-11, government was able to control its fiscal deficit to 4.7% of GDP. However, for the current financial year, experts have the view that meeting the fiscal deficit target for the current financial year would be difficult due to unfavorable conditions on domestic and global fronts.
The numbers of factors such as lower revenue generation because of the slowdown, and increasing expenditure on account of increasing oil marketing companies' losses are putting pressure on the government financial health. Economist and analysts from the private sector expects fiscal deficit numbers to be in between 5.1% to 5.8% for current fiscal year.
During the April to July 2011, the fiscal deficit stood at 55% of the budgetary target. In the April to June 2011 fiscal deficit was around 39.4% of the budget estimate for 2011-12 from 10.5% of budget estimate in April to June 2010. But the finance ministry says that the fiscal deficit for the first quarter of 2011-12 is not comparable to the last fiscal years due to record gains from the 3G auctions.
'Better performance during 2010-11 may be seen in the context of one time receipts of about 1.3% of GDP during the first quarter from the auction of 3G and BWA spectrum,' the statement said. The ministry also noted that the high tax refunds for revenue falling short of the estimates. In order to clear pending tax refunds, in the first quarter, government had paid out around Rs 74,000 crore.
The high fiscal deficit during April to June 2011-12 is because of 54.5% decline in revenue receipts and 7.8 increase in expenditure over the last year. The revenue receipts although lower than last year, are in line with the five-year moving average at 11.5% of budget estimates, the finance ministry said.
The S&P CNX Nifty is currently trading at 5,136.65, higher by 72.35 points or 1.43%. The index has touched a high and low of 5,137.20 and 5,076.30 respectively. There were 44 stocks advancing against 5 declining one's on the index, while one remained unchanged.
The top gainers of the Nifty were Jaiprakash Associates up by 6.11%, ACC up by 5.61%, Ambuja Cement up by 4.34%, Tata Power up by 4.34% and RCOM up by 4.21%.
On the flip side, ITC down by 0.59%, Hero Motocorp down by 0.44%, M&M down by 0.31%, Sun Pharma down by 0.21%, and Dr Reddy down by 0.07% were the major losers on the index.
All
the Asian equity indices were trading on a firm note; Shanghai
Composite was up by 1.74%, Hang Seng was up by 1.64%, Jakarta Composite
was up by 1.77%, KLSE Composite was up by 0.66%, Nikkei 225 was up by
2.01%, Straits Times was up by 1.85%, Seoul Composite was up by 3.78%
and Taiwan Weighted was up by 2.20%.
No comments:
Post a Comment