Business

Sensex, Nifty flat over fears of fiscal slippage

Agency | February 04, 2019 03:14 PM

MUMBAI:  Sensex and Nifty traded on a flat to negative note during the afternoon session of the trade on Monday over concerns of fiscal slippage and owing to heavy volatility in specific stocks.

FMCG, healthcare and auto stocks witnessed heavy selling pressure while the key banking and finance stocks reversed early losses and traded in the green.

Stocks price of Reliance Communications (RCOM) declined up to 48 per cent while Dewan Housing Finance Corporation (DHFL) lost 10 per cent in the morning trade.

"Market is fearing a fiscal slippage because of various announcements in the Interim Budget, like the higher borrowing programs by the government.

"Also the government's estimate of GST collection in FY19 is on the higher side. The nominal GDP growth rate of 11.5 per cent is also difficult to achieve," Rusmik Oza, Head-Fundamental Research, Kotak Securities, told IANS.

He said that the capital expenditure for the next year is 6 per cent which is very low. In addition the bond market is not happy with the Interim Budget hence having a negative impact on the investors.

According to Deepak Jasani of HDFC Securities, the Budget, which was announced on February 1, will continue to have an effect on the market for a few more days.

"Fears of slippage is because of governments fiscal deficit target of 3 per cent in FY21. The 3.4 per cent target for next year is also not good.

"It is not possible to reduce 0.4 per cent in a year," he added.

The other factors was the volatile movements in some specific stocks like Zee, DHFL and RCOM which is pushing away the retail investors, the analysts noted.

At 2.29 p.m., the Sensex traded 11.96 points lower or 0.03 per cent at 36,457.47 from its previous close of 36,469.43.

It touched an intra-day high of 36,456.22 and low of 36,225.48.

The broader Nifty lost 11.95 points or 0.11 per cent at 10,881.70 from its previous close of 10,893.65.

ONGC and Bajaj-Auto gained over 2 per cent. Reliance Industries, TCS and HDFC Bank gained up to 1 per cent.

Tata Steel, Yes Bank, Power Grid, IndusInd Bank and Sun Pharma lost in the range of 2 to 4 per cent.

Have something to say? Post your comment
Must Read
DC asks officers to speed up awareness drive to make farmers aware of benefits of PMKSN
DC asks officers to speed up awareness drive to make farmers aware of benefits of PMKSN
MP, MLAs, DC and CP greet people on Parkash Utsav of Sri Guru Ravidass Maharaj Ji
MP, MLAs, DC and CP greet people on Parkash Utsav of Sri Guru Ravidass Maharaj Ji
Punjab cabinet ministers expose Capt-Badal bonhomie on the floor of Vidhan Sabha- Bhagwant Mann
Punjab cabinet ministers expose Capt-Badal bonhomie on the floor of Vidhan Sabha- Bhagwant Mann
Car driver arrested for death by negligence
Car driver arrested for death by negligence
Ministerial staff pen down strike continued on Monday
Ministerial staff pen down strike continued on Monday
Punjab IAS officers association strongly condemns reprehensible act of terrorism in Pulwama
Punjab IAS officers association strongly condemns reprehensible act of terrorism in Pulwama
Capt Amarinder slams SAD for disrupting budget proceedings
Capt Amarinder slams SAD for disrupting budget proceedings
Mansa Saanjh Kendras reach out to people, during Jan 3681 applicants get facilities at the Kendras, SSP
Mansa Saanjh Kendras reach out to people, during Jan 3681 applicants get facilities at the Kendras, SSP
Bir Talab to have Butterfly Zone soon
Bir Talab to have Butterfly Zone soon
Punjab budget: Petrol, diesel rates slashed
Punjab budget: Petrol, diesel rates slashed
Punjab MLAs to donate a month’s salary to state’s Pulwama victims’ families
Punjab MLAs to donate a month’s salary to state’s Pulwama victims’ families
MP Chaudhary Satnokh Singh lays foundation stone of city road by allocating Rs 35 lakh from his MPLAD
MP Chaudhary Satnokh Singh lays foundation stone of city road by allocating Rs 35 lakh from his MPLAD