Companies and Markets

Companies & Markets

Agri stocks surge on hopes of budget largesse

A day ahead of Union budget, agri input stocks rose sharply on Wednesday in anticipation of large scale budget incentives for fertiliser, seed, farm equipment and agro-chemicals sectors.
The rise in share price of agri input stocks was in contrast to the fall in benchmarks Sensex (0.19 per cent) and Nifty (0.20 per cent) and the broader market indices BSE small cap (0.83 per cent) and BSE mid-cap (1.29 per cent).

LTCG fears grip mid, small cap counters

Even as benchmark indices, BSE Sense and NSE Nifty, have set record high levels for themselves, selling has emerged in the mid and small cap segments.
 According to analysts, what has triggered a selloff in smaller counters is the fear that the budget will tinker with the long-term capital gains. The BSE small-cap and mid cap indices have underperformed the benchmark indices and have given negative returns.

An analysis of the broad BSE 500 index shows that more than half of the stocks have given negative returns.

Tax payers look forward to a rewarding budget

There are many expectations from this budget since we haven't seen any populist budget till now from present government, which has been focused on fiscal consolidation since the beginning of its term. There have been banking reforms like Jan-Dhan Yojna, PMAY and Mudra, while on the other hand, we also saw a tax overhaul with GST and, of course, demonetisation. The unearthing of projects like Bharat Mala was a massive step. Falling crude prices, falling global and domestic inflation, stable gold prices had led to huge inflow.

Cut in corporate tax rate the key measure to watch

The Union Budget 2018-19 is likely to set the market direction in the coming months, especially given the mouth-watering returns to the investors in last 12 months. Corporate earnings announced so far have been more or less in line with expectations. However, after giving satisfactory returns, the further direction of the equity market will depend on the actual budget announcements and, therefore, the budget is important for investors.

Top budget asks from digital sector

The Internet and Mobile Association of India (IAMAI) has highlighted key tax related challenges that the digital sector expects to be addressed in the budget.

Market sees a non-populist budget

The equity market has run up quite sharply ahead of the NDA government’s last full budget on expectation that the government will take measures that would spur growth in the economy.

According to analysts,  two key things stock market investors are looking forward to in Budget 2018-19 are continued commitment to fiscal consolidation and no additional tax burden on capital market investments.

IT firms turn corner in 3Q as digital deal sizes expand

Indian IT seems to have turned the corner during the third quarter, which ended in December. Digital deal sizes are growing and the overall momentum for the space is starting to pick up.

In addition, digital services portfolios are growing in double digits for most local tech vendors and this growth will sustain for at least three to four years, predict analysts.

Volatility index hovers near 52-week high, correction on the cards

The volatility index India VIX of NSE is hovering near 52-week high level, indicating a likely weakness to corrections after a steep rise to record high on Monday.

With over 600-point gain for Nifty 50, the rally was looking stretched and a consolidation at this juncture is a welcome sign, market observers said.

The benchmarks corrected moderately on Tuesday. The broader market indicators couldn’t hide the fear among the investors as 2,097 BSE stocks closed in the red and 748 stocks ended the day with gains.

Bulk deposit rates rise as credit growth picks up momentum

Your bank deposit rates are likely to fetch you more returns in the coming months as banks are witnessing an accelerated credit growth while deposit mobilisation continues to remain weak.

Leading banks have already hiked bulk deposit rates (deposits of Rs 1 crore and above) in the last few months. State Bank of India (SBI), the country’s largest bank, has hiked bulk deposit rates for deposits of Rs 1 crore to Rs 10 crore by 50-140 basis points effective Tuesday.

FDI equity inflows to services grew by 15% in 2017-18

The Narendra Modi government is banking heavily on its various reforms initiative to attract fresh capital inflows. The increase of Foreign Direct Investments (FDI) to the services sector by 15 per cent in the first seven months of the current fiscal is one such reform initiatives taken by the government which augurs well for the investing community and is expected to ensure that India remains an attractive investment destination. At least that’s what The Economic Survey-2017-18, presented in Parliament by union Finance minister Arun Jaitley on Monday, said.