Key benchmark indices were hovering in positive terrain in mid-morning trade as Finance Minister began his Budget 2018 speech. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 216.13 points or 0.60% at 36,181.15. The Nifty 50 index was up 68.25 points or 0.62% at 11,095.95. The Sensex was trading above psychological 36,000 mark after opening above that level. Positive global cues also boosted sentiment.
Finance Minister, Arun Jaitley started his Union Budget speech for the financial year 2018-19 in parliament at 11:00 IST today, 1 February 2018. The finance minister emphasised on the premium on honesty given by this government. There was a time when corruption was the norm. But today's youth wants to lead a life on honesty. There is a premium on honesty, he stated. The FM also added that India is poised to become the fifth largest economy very soon.
With demonetisation, the quantum of cash currency in circulation and increased tax base and has also help improve the digitalization of our country, said Arun Jaitley. He also added that Foreign direct investment has gone up, while the GDP at 6.3% is a signal of a turnaround of the economy. He added that exports are expected to grow at 15% in 2018-19.
The Union Budget 2018-19 is the last full-year Budget of the NDA government, as the general elections are due in 2019. Finance Minister Arun Jaitley will outline the government's priorities for the next fiscal year.
The market expects the government to continue following the path of fiscal consolidation. Investors are also expecting changes in the direct tax structure including income tax. Infrastructure is also expected to be a priority in the budget. Apart from the major reforms, several economists are urging the government to cut corporate tax rates in order to make the Indian industries competitive on a global level.
Among secondary barometers, the BSE Mid-Cap index was up 0.09%, underperforming the Sensex. The BSE Small-Cap index was up 0.85%, outperforming the Sensex.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,550 shares rose and 860 shares fell. A total of 122 shares were unchanged.
Car major Maruti Suzuki India was down 0.32%. The company said its total vehicle sales rose 4.8% to 1.51 lakh units in January 2018 over January 2017. While domestic sales grew 5%, exports saw a 2.8% growth compared to the corresponding period last year. The announcement was made during trading hours today, 1 February 2018.
ICICI Bank was up 0.17% after the bank reported 32.4% slide in net profit to Rs 1650.24 crore on 4.1% fall in total income to Rs 16832.22 crore in Q3 December 2017 over Q3 December 2016. The result was announced after market hours yesterday, 31 January 2018.
ICICI Bank's gross non-performing customer assets (NPAs) net of write offs stood at Rs 46038.70 crore as on 31 December 2017 as against Rs 44488.54 crore as on 30 September 2017 and Rs 38084.97 crore as on 31 December 2016. The ratio of gross non performing customer assets (net of write-offs) to gross customer assets stood at 7.82% as on 31 December 2017 as against 7.87% as on 30 September 2017 and 7.2% as on 31 December 2016. The ratio of net non performing customer assets to net customer assets stood at 4.2% as on 31 December 2017 as against 4.43% as on 30 September 2017 and 3.96% as on 31 December 2016. The bank's provisions and contingencies rose 31.59% to Rs 3569.56 crore in Q3 December 2017 over Q3 December 2016.
Sunteck Realty rose 4.03% after the company announced about the joint development agreement for development of affordable segment at Naigaon. The announcement was made after market hours yesterday, 31 January 2018.
Sunteck Realty said that the agreement was entered with DDPL Global Infrastructure and Unicorn Infraprojects and Estates. Sunteck Realty stepped into the affordable segment with a potential development of 100 acres in Mumbai Metropolitan Region (MMR). The project is acquired under the asset light JDA model and has the potential of generating revenue of over Rs 5500 crore with close to Rs 1500 crore realizable over the next 2 years. The project is located at Naigaon-the extended western suburbs, phased over the next five years. Sunteck is set to launch the project under a new brand of aspirational homes in a completely new division.
On the macro front, the Nikkei India Manufacturing Purchasing Managers' Index, or PMI, fell to 52.4 in January, reflecting a slower growth after the index reached a 5-year high at 54.7 in December 2017. A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Overseas, most Asian shares were trading higher, tracking gains seen on Wall Street following the Federal Reserve's decision to keep rates unchanged.
US stocks closed slightly higher in the last session. The US Federal Reserve announced it was holding rates steady, a move that was widely expected. The Federal Open Market Committee (FOMC) also said it expected inflation pressure to pick up as the year progressed.
Meanwhile, private-sector employment was strong in January, as employers added 234,000 jobs, Automatic Data Processing Inc. reported Wednesday.
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