Key indices were trading with modest gains in mid-morning trade. The Nifty was trading a tad above the 11950 mark. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 90.16 points or 0.23% at 39,929.67. The Nifty 50 index was up 35.2 points or 0.3% at 11,951.95.
The government tabled the economic survey in Parliament. The economic survey has predicated 7% GDP growth in FY20 on stable macroeconomic conditions. General fiscal deficit is seen at 5.8% in FY19 against 6.4% in FY18. Oil prices are seen declining in FY20 from the existing levels.
Government stood by its path of fiscal consolidation in FY19. January-March slowdown partly because of election-related uncertainty. Stress in the NBFC sector was also a reason for FY19 growth slowdown. Positive signs in investment activity seem to be taking hold.
The economic survey has said that decline in the non-performing assets (NPAs) should help push the capital expenditure cycle. Falling nominal GDP growth shows secular inflation fall. Share of informal sector to manufacturing growth decreased in FY19.
Chief Economic Advisor K V Subramanian will hold press conference on Economic Survey 2018-19 from National Media Centre at 13:15 pm onwards today.
The Union Budget will be announced tomorrow, 5 July 2019. After presenting the interim budget in February 2019, the Modi government will present its full-year budget 2019-20. The government is likely to amend several policies and schemes for delivering growth to the biggest drivers of the economy, including farmers, middle class, and the corporate sector.
The S&P BSE Mid-Cap index was up 0.07%. The S&P BSE Small-Cap index was up 0.29%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1160 shares rose and 809 shares fell. A total of 120 shares were unchanged.
ONGC was up 0.69% to Rs 167.35 after the company clarified on a news report referring to dispute between ONGC and Cairn India.
With reference to news item titled, 'Cairn stops paying royalty on Rajasthan on oil after difference with ONGC.', the state-run oil major clarified that in the pre-NELP exploratory block RJ-ON-90/1, operating under production sharing contract (PSC) regime, there are varied perspectives on various issues between contractors comprising of ONGC (licensee/lessee), Cairn India-operator and Cairn Energy Hydrocarbons. Such issues have risen during implementation of operations of large scale and complexity in this block. Claims and counter claims by the contractors are currently under arbitration which is one of the dispute resolution mechanism provided under the PSC. The matter is sub-judice.
Realty stocks were in demand. Oberoi Realty (up 4.32%), Prestige Estates Projects (up 2.39%), Anant Raj (up 1.74%), Sobha (up 1.74%), Indiabulls Real Estate (up 1.64%), Godrej Properties (up 1.34%), DLF (up 0.75%), Omaxe (up 0.18%), The Phoenix Mills (up 0.05%) advanced. Mahindra Lifespace Developers (down 0.26%) and Sunteck Realty (down 0.07%) declined.
Metal stocks edged lower. Hindustan Zinc (down 1.33%), Jindal Steel & Power (down 0.52%), Hindustan Copper (down 0.49%), NMDC (down 0.34%), Vedanta (down 0.29%), Hindalco Industries (down 0.12%) and Steel Authority of India (down 0.01%) declined. National Aluminium Company (up 0.3%) and Tata Steel (up 0.01%) gained marginally.
In a major step to boost farmers' income, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved an increase in the minimum support prices (MSPs) for kharif crops in the 2019-20 season. MSP of paddy increased by Rs 65 per quintal, jowar by Rs 120 per quintal and ragi by Rs 253 per quintal. The MSP of tur, moong and urad pulses has been raised by Rs 125 per quintal, Rs 75 per quintal and Rs 100 per quintal, respectively.
Overseas, Asian stocks were trading higher on Thursday as shares on Wall Street saw a record close overnight.
US stocks rose on Wednesday, with each of the major indexes closing at a record high, as expectations grew that the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy. U.S. equity markets will be closed on Thursday for Independence Day.
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