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Budget day market insight by Purpletrades

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Report by- Sabyasachi Bhattacharya

 

SBI Q3 result; let’s take a look at their performance-

State Bank of India has reported profit at Rs 3,955 crore for October-December quarter, driven by sharp fall in provisions and NII growth.

The country’s largest lender had posted a loss of Rs 2,416.4 crore in same quarter last year. Sequentially the profit increased by a whopping 318.5 percent or 4-fold.

Net interest income during the quarter grew by 21.4 percent year-on-year to Rs 22,691 crore with loan growth of 12.1 percent YoY and 4.6 percent QoQ. NII growth was driven by lower slippages and lower funding cost.

Domestic net interest margin expanded to 2.97 percent at the end of December quarter against 2.92 percent as of September driven by higher credit growth, better spreads and lower slippages, SBI said.

Numbers were ahead of a CNBC-TV18 poll estimates of Rs 3,318 crore for profit and Rs 21,902 crore for NII.

The bank improved its asset quality performance. Gross non-performing assets (NPA) as a percentage of gross advances were lower at 8.71 percent for the quarter against 9.95 percent in previous quarter.

Net NPA as a percentage of net advances, too, were lower at 3.95 percent for the quarter against 4.84 percent in September quarter.

In absolute term, gross NPAs dipped to Rs 1,87,764.6 crore, down 8.8 percent and net NPAs fell 14.6 percent to Rs 80,943.5 crore compared to year-ago due to decline in slippages.

SBI said fresh and gross slippages for the quarter stood at Rs 4,523 crore and Rs 6,541 crore, declined sharply against Rs 10,725 crore and Rs 10,888 crore reported in September quarter while recoveries & upgrades were higher at Rs 6,617 crore against Rs 4,327 crore in earlier quarter.

 

Let’s take a look at their Q3 report-

Source-MoneyControl, Purple Trades Research Department 

 

 

Key highlights of the Interim Budget 2019; relief for middle class and farmers-

  1. Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate

2. Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in                provident fund.

3.  Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.

4.  TDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees.

5. Gratuity limit increased from 10 lakh to 30 lakh rupees.

6. Businesses with less than Rs. 5 crore annual turnover, compromising over 90% of GST payers, will be allowed               to return quarterly returns.

7. GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers; most items of daily use for poor and middle class are now in the 0%-5% tax bracket.

8. Two per cent interest subvention on loan of 1 crore for GST registered MSME units.

9. Increased allocation for Rashtriya Gokul Mission to 750 crore in current year.

10. Two per cent interest subvention to farmers pursuing animal husbandry and fisheries.

11. Fiscal deficit has been bought down to 3.4%; CAD (current account deficit) likely to be 2.5% of GDP this year.

12. Under Pradhan Mantri Kisan Samman Nidhi, 6000 rupees per year for each farmer, in three installments, to be transferred directly to farmers’ bank accounts, for farmers with less than 2 hectares land holding.

13. This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore.

Source-MoneyControl, Purple Trades Research Department 

 

 

Indian markets had a range bound day with good volatility-

Chart source- Upstox

Indian markets had a range bound day as you can see on the chart above. Nifty opened with a gap-up after which it started moving upwards but soon encountered resistance at the levels around 10,985. As you can see on the chart above the Index was trading in a range in the morning.

After the morning session there was high volatility due to which the Index was pushed to near 11,000 but couldn’t cross those levels and the Index was pulled back to the levels it was trading before.

At the end of the benchmark indices ended higher but off day’s high with Nifty ended near 10,900 level post Interim Budget presented by Finance Minister Piyush Goyal.

The Sensex was up 212.74 points at 36469.43, while Nifty was up 62.70 points at 10893.70. About 1189 shares have advanced, 1323 shares declined, and 137 shares are unchanged.

Major gainers are from auto, energy, FMCG, pharma, IT and infra space, while metal and banking stocks were remained under pressure during the day.

Hero Motocorp, Maruti Suzuki, HCL Tech, Asian Paints and Bajaj Finance are the top gainers on the Sensex, while losers are Vedanta, Yes Bank, Coal India, SBI and ICICI Bank.

 

 

Let’s take a look at the performance of major Indices-

Global markets had a bullish day today. European Indices CAC and FTSE were all seen in the GREEN. European index DAX along with Asian Indices Straits Times and Hang Seng were seen in RED.

Source- MoneyControl, Purple Trades Research Department 

 

 

Key Points for Traders to watch out for while trading Nifty tomorrow-

  • 10,790 is a short term support for Nifty.
  • If Nifty breaks 10,790 then it has the potential to go down.
  • 10,980 is a short term resistance for Nifty.
  • If Nifty breaks 10,980 then it has the potential to go up.

 

Sectors that moved the market today- Data source- Moneycontrol

 

 

Gainers for today- Data source- Moneycontrol

 

 

 

Losers for today- Data source- Moneycontrol

 

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