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Budget 2019: Indian Government To Borrow In Foreign Currency
India’s plan to sell sovereign bonds overseas is most welcome as it will open up a new source of funding the budget deficit, says Harihar Krishnamoorthy, treasurer at FirstRand.
Once successfully established with investors, it will play a critical role in reducing the local government borrowing in rupee and alleviate the pressure on local liquidity, leaving more funds in the local market, he told Bloomberg.
Government pegged an enhanced target of raising Rs 1,05,000 crore for the year 2019-20. The government is also execute consolidation of PSUs in the non-financial space as well, said Sitharaman. "Strategic disinvestment of select central public sector enterprises to remain priority of this government."
Here’s how stocks are reacting:
Shares of the non-banking finance companies rallied after the government plans to
The RBI has limited regulatory authority over the NBFCs. The government plans to strengthen those powers, Sitharaman said.
The key highlights:
India’s finance ministry will likely keep gross borrowings unchanged at a record Rs 7 lakh crore ($103 billion) for the fiscal year that started April 1, people with the knowledge of the proposal told Bloomberg.
The second phase of Pradhan Mantri Aawas Yojana will see construction of 1.95 crore houses by 2020-21, said Sitharaman. “Already over 1.5 crore rural home have been completed under the Housing For All scheme in five years.”
FM says India's FDI flows in 2018-19 remained strong compared to global markets at $54.2 billion, 6 percent higher than last year. The government will examine options of opening up FDI in media, animation and some other sectors to improve these flows further, she said.
Catch all the live updates on Union Budget here.
Indian equity benchmarks fluctuated between gains and losses as Finance Minister Nirmala Sitharaman started off her maiden budget speech acknowledging the decisive mandate given by India’s voters in the recently concluded elections.
The Sensex traded 0.1 percent or 30 points higher at 39,940 as of 11 a.m. while the NSE Nifty 50 traded little changed at 11,945. The broader market represented by the NSE Nifty 500 Index also erased gains and fell 0.1 percent.
The Union Cabinet has approved the Budget 2019. Finance Minister Nirmala Sitharaman will begin her budget speech in the Lok Sabha shortly.
Catch all the live updates on Union Budget here.
ED attaches under PMLA, land & rice mill of M/s KRBL Ltd at Sangrur, Punjab worth Rs. 15.32 crores in kickback case of M/s Embraer SA, Brazil.
— ED (@dir_ed) July 4, 2019
Shares of the country's largest carmaker erased opening gains to trade little changed at Rs 6,574.50.
The company's production for the month of June fell 15.6 percent to 1.11 lakh units year-on-year, according to its exchange fling. Also, its passenger vehicle segment declined close to 17 percent to 84,066 units, the filing added.
The stock fell 30 percent in the past 12 months compared with a 12 percent gain in the Nifty.
Shares of ITC fell nearly 1 percent intraday to Rs 275.20.
About 20 lakh shares of the company changed hands in a block deal on National Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.
The stock traded at 24 times its estimated earnings per share for the coming year, according to Bloomberg data.
The ongoing rally in the Nifty is expected to continue in today's trade till 12,100, said Shubham Agarwal, chief executive officer of Quantsapp.com. He also pegged the stop-loss at 11,910.
“The volatility is moving down ahead of the budget. This is indicating that the market expects some more upside on the Nifty. The historical volatility underlying of the 50-share gauge is quoting at a 10-month low which means the market sentiment is also neutral to positive,” Agarwal told BloombergQuint in an interaction.
Nifty’s 12,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract which is set to expire on July 11 rose 0.8 percent to Rs 80.10. Over 10.54 lakh shares were added to the open interest which stood at over 23.19 lakh shares.
After meeting President Ram Nath Kovind at the Rashtrapati Bhavan, Finance Minister Nirmala Sitharaman has arrived at the Parliament to deliver her budget speech at 11:00 am.
Catch all the live updates on Union Budget here.
Indian equity benchmarks continued to hold gains ahead of the Union Budget which will be presented at 11 a.m. by Finance Minister Nirmala Sitharaman.
The S&P BSE Sensex rose 65 points or 0.17 percent higher to 39,974 as of 10:05 a.m. and the NSE Nifty 50 traded around 11,960, up 0.1 percent. The broader market represented by the NSE Nifty 500 Index rose 0.07 percent.
In the currency market, the Indian rupee depreciated as much as 0.28 percent to 68.69 against the U.S. dollar.
Shares of Yes Bank extended declines for the fourth consecutive trading session. The stock fell as much as 4.2 percent to Rs 92.25, their lowest levels since May 2014
The stock is set for its longest losing streak since April 8. The Relative Strength Index was below 30, indicating that the stock may be overbought, according to Bloomberg data.
The Mumbai-based lender traded at 5.5 times its estimated earnings per share for the coming year, according to Bloomberg data. The stock fell 14 percent in the past five days and declined 39 percent in the past 30 days.
Besides, Yes Bank bought a 9.47 percent stake in Eveready Industries after invoking 68.8 lakh pledged shares on July 3.
Shares of the liquor maker slumped 7.8 percent intraday to Rs 455, their lowest since October 2017 after the June quarter results.
Key Earnings Highlights (Q1, YoY)
Shares of Westlife Development rose as much as 2.9 percent to Rs 315.05.
About three lakh shares or 1.9 percent equity changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.
Trading volume was 7,911 times its 20-day average, Bloomberg data showed. The stock traded at 69 times its estimated earnings per share for the coming year.
On Markets:
On Bank Recap:
Source: IBC Petition
Indian equity benchmarks are set for a positive open ahead of the Union Budget presentation by Finance Minister Nirmala Sitharaman.
The S&P BSE Sensex rose 0.15 percent to 39,966.33 during the pre-market trade and the NSE Nifty rose 0.22 percent to 11,973.
In the currency market, the Indian rupee opened lower against the U.S. dollar, extended gains for the tenth consecutive trading session
Catch all the live updates on Union Budget here.
Here's a quick look at the corporate insider trades reported on Thursday.
— BloombergQuint (@BloombergQuint) July 5, 2019
Read: https://t.co/56BNocZzb3 pic.twitter.com/MvwR9ws9y7
One can take a position on the Nifty with a stop-loss of 11,800 on a conservative basis and hold on to long positions with a target of 12,100. Since it is going to be a risk trade, only ‘brave hearts’ should attempt it.Hadrien Mendonca, Senior Technical Analyst IIFL
In Ban:
India has a lot of room for higher fiscal deficit and to lower interest rates to spur economic growth.
That’s according to Mark Mobius, co-founder of Mobius Capital Partners, who expects India’s fiscal deficit to rise to as high as 5 percent of its gross domestic product. The deficit, he said, won’t deter foreign investments if the higher slippages are aimed at improving the country’s economic performance.
Read the full story and watch the full interaction here.
Catch all the live updates on Union Budget here.
The Biggest Winner From a Rise in Precious Metals
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