Indian shares rose on Wednesday after finance minister Arun Jaitley unveiled a budget with a range of incentives for companies and geared towards boosting infrastructure and developing the rural economy. However, views on the fiscal deficit target were mixed after the government raised it to 3.2% from its earlier forecast of 3%, with some analysts expressing scepticism about whether it would be achievable. Bonds were down with the benchmark 10-year bond yields up 1 basis point at 6.42% after rising as much as 5 bps earlier amid confusion about the government’s planned gross borrowing numbers.
The numbers initially provided by the government did not account for a buyback of a net Rs750 billion in bonds, which is part of the Rs6.05 trillion gross borrowing projection for the next fiscal year and 3.48 trillion rupees net borrowing projection. “The budget was neither popular nor populist. It was a rather tepid budget as has been the case lately,” said Arvind Chari, head of fixed income and alternatives for Quantum Advisors. “The budget proposals are not inflationary and, thus, if food prices remain benign, we could expect some rate cuts by the RBI.”
The rupee strengthened to 67.59 per dollar from its previous close of 67.86. Financials were among the top gainers on the NSE index, with the Nifty bank index climbing as much as 2.35%. State Bank of India was up 2.80%. Among other gainers, fertiliser shares gained after Jaitley said he expected the agriculture sector to grow at 4.1% in 2016/17 with a better monsoon. Deepak Fertilisers and Petrochemicals Corp rose as much as 7.29%, while Coromandel International Ltd climbed up to 5.21%.
3.30pm: BSE Sensex rises 486 points, or 1.76%, to 28,142 while the Nifty 50 rises 155 points, or 1.81%, to 8,716.40.
3.02pm: BSE Sensex rises 462 points, or 1.67%, to 28,118 while the Nifty 50 rises 149 points, or 1.74%, to 8,710. Auto stocks jumped. Maruti Suzuki India up 5%,Mahindra & Mahindra up 5%, Tata Motors up 4%, Eicher Motors Ltd rose 5%
2.40pm: BSE Sensex rises 371 points, or 1.34%, to 28,027 while the Nifty 50 rises 119 points, or 1.39%, to 8,680.
2.00pm: BSE Sensex rises 409 points, or 1.48%, to 28,065 while the Nifty 50 rises 114 points, or 1.34%, to 8,676.
1.35pm: BSE Sensex rises 308 points, or 1.11%, to 27,964 while the Nifty 50 rises 90 points, or 1.05%, to 8,651.
1.15pm: Realty stocks jumped. DLF Ltd rose 6.9%, Godrej Properties Ltd 4.7%, HDIL 4.5%, Unitech Ltd 4.1%, Oberoi Realty 3.5%, Indiabulls Real Estate 2.7%. BSE Realty rose 4.2%.
1.10pm: BSE Sensex rises 345 points, or 1.25%, to 28,001 while the Nifty 50 rises 80 points, or 0.93%, to 8,641. BSE IT, BSE teck, BSE healthcare and BSE telecom indices trade lower.
1.05pm: BSE Sensex rises 262 points, or 0.95%, to 27,918 while the Nifty 50 rises 43 points, or 0.50%, to 8,604.
12.59pm: BSE Sensex rises 107 points, or 0.39%, to 27,763 while the Nifty 50 rises 28 points, or 0.33%, to 8,590. BSE healthcare index falls 0.67%, NSE healthcare index 1.34%.
12.25pm: 10-year-bond yield fell 3 basis points to 6.385% as borrowing announced is less then estimated.
12.20pm: BSE Sensex falls 3 points, or 0.01%, to 27,653 while the Nifty 50 falls 14 points, or 0.17%, to 8,547.
12.05pm: Sterlite Technologies shares rise 3.6% while Aksh Optifibre rose 5% after FM announced fiber optic network expansion.
12.02pm: BSE Sensex trades higher by 19 points, or 0.07%, to 26,675 while the Nifty 50 rises 6 points, or 0.07%, to 8,556. Ashiana Housing surged 15% & Ansal Housing & Construction jumped 10% after finance minister increased housing allocation to Rs 23000 crore.
11.33am: BSE Sensex trades higher by 60 points, or 0.22%, to 26,716 while the Nifty 50 rises 21 points, or 0.24%, to 8,582.
11.27am: PSU banks gained. Union Bank of India shares rise 3.5%, Bank of Baroda 2.6%, SBI 2.4%, PNB 2.3%, Bank of India 1.5%, Canara Bank 1.4%, IDBI Bank 1%. Nifty PSU Bank rose 2.3%
11.05am: BSE Sensex trades higher by 38 points, or 0.14%, to 26,694 while the Nifty 50 rises 7 points, or 0.08%, to 8,568. Idea Cellular Ltd fell 4.7% to Rs 105.05 on profit booking. The stock jumped nearly 70% in last eight trading sessions after Vodafone Group Plc. confirmed talks of merger with the company.
10.31am: BSE Sensex trades lower by 10 points, or 0.04%, to 26,646 while the Nifty 50 falls 6 points, or 0.07%, to 8,556.
10.20am: Maruti Suzuki India Ltd shares hit an all-time high to Rs5,987.95 a share, up 1.5% from previous close after the company posted 27% rise in its January month sales.
10.10am: BSE Sensex trades higher by 11 points, or 0.04%, to 26,667 while the Nifty 50 rises 2 points, or 0.03%, to 8,564.
10.05am: IT stocks fall. Tata Consultancy Services Ltd shares fall 2.2%, Infosys Ltd shares fall 2.1%, Wipro Ltd shares fall 1.3%, HCL Infosystems Ltd shares fall 4.5%, Hexaware Technology shares fall 2.6%, Cyient shares fall 2.6%, HCL Technologies Ltd shares fall 2.5%.
10.00am: HCL Infosystems Ltd shares fall 4.5% after the company reported a net loss of Rs50.73 crore against Rs56.82 crore a year ago. Net sales fell 32% to Rs765 crore from Rs1,120 crore a year ago.
9.50am: Grasim Industries Ltd shares rise 2.6% to Rs934.70 after the company clarified to the exchanges that it has no proposals to make large investment in Idea Cellular.
9.40am: Aviation stocks fall after Indian Oil raises local airline jet fuel prices in Delhi by 2.9% from Wednesday. Jet Airways India Ltd fell 2.6%, SpiceJet Ltd fell 1.3%, InterGlobe Aviation Ltd fell 5%
9.30am: BSE Sensex trades higher by 29 points, or 0.11%, to 26,685, while the Nifty 50 rises 12 points, or 0.14%, to 8,573.
9.28am: ICICI Bank Ltd fell 2% to Rs 263.55 after the bank reported a 19.1% decline in December quarter net profit as asset quality worsened to a 13-year low and growth in core interest income slowed down. The lender’s gross bad loans ballooned to Rs37,716. 73 crore at the end of December, rising 17.21% from the quarter ago. As a percentage of total loans, gross bad loans stood at 7.9% at the end of December, up from 6.82% at the end of the previous quarter. Bad loans net of provisions were 4.35% of advances.
9.25am: InterGlobe Aviation Ltd fell 4% to Rs 866.30 after the company reported 25% decline in its net profit in December quarter to Rs 487.25 corre from a year ago. Revenue rose 16.8% to Rs5,158.42 crore from Rs4,481.20 crore in the year-ago period as the company added planes and operated more flights.
9.20am: Bank of Maharashtra Ltd fell 3.6% to Rs 32.10 after the bank reported fourth consecutive quarterly loss. The bank reported a loss of Rs182.51 crore in the December quarter, versus a net profit of Rs89.06 crore a year ago.
9.15am: At 9.15am, the home currency was trading at 67.64, up 0.33% from its previous close of 67.87. The local currency opened at 68.61 a dollar and touched a high of 67.61
9.10am: India’s 10-year bond yield was at 6.406% from its Tuesday’s close of 6.407%. Bond yields and prices move in opposite directions.
9.00am: Most Asian currencies were trading mixed. Taiwan dollar was up 0.68%, South Korean won 0.67%, Indonesian rupiah 0.12%, Philippines peso 0.12%. However, Singapore dollar was down 0.23%, Japanese yen 0.2%, Thai baht 0.11%, China offshore 0.08%.