2:40 pm India Inc meets PM:
For the first time since the Narendra Modi government took charge at the Centre 15 months ago, he along with Finance Minister Arun Jaitley and other Cabinet ministers met India Inc. The contours of the meeting primarily include deliberating on the recent global developments and the opportunities it presents for India.
The who’s who of India Inc attended the meeting, along with vice-chairman of Niti Aayog of India – Arvind Panagariya and the Chief Economic Advisor Arvind Subramanian. Industry bigwigs such as Sunil Mittal, YC Deveshwar, Mukesh Ambani, KM Birla and Arundhati Bhattacharya, among others, were present at the meeting.
India Inc too stressed on the need for greater monetary easing atleast to the extent of 75 basis points and that the rupee must be allowed to depreciate to preserve domestic price competitiveness in global trade.
2:30 pm Market check: Here it is again! The Nifty reclaims 7700, up 145.05 points or 1.9 percent at 7703.85. The Sensex is up 436.36 points or 1.7 percent at 25330.17.About 1394 shares have advanced, 1147 shares declined, and 118 shares are unchanged.
Tata Steel gains 7 percent while BHEL and GAIL are up 6 percent each. Other gainers are Axis Bank and Vedanta. HUL is still down 3 percent while Dr Reddy’s Labs, Bharti Airtel and Cipla slip.
2:20 pm FY16 fiscal deficit target: Sluggish direct tax collection, likely shortfall in disinvestment proceeds and OROP scheme pay out will add to the government’s fiscal burden but it will “adhere to” fiscal deficit target by reducing expenditure, says a Standard Chartered report.
It cautioned however that a decision to reduce capital expenditure more than recurrent expenditure could dampen the government’s efforts to kick-start the investment cycle.
“A consumption boost resulting from pay revisions could support economic activity in the near term. However, lower government capex in an environment where private-sector investment is likely to remain weak could mean that such growth is unsustainable,” the report said, adding that the recent improvement in investment has been primarily driven by government expenditure.
Don’t miss: GAIL up 7%, Nomura says Q2 lacklustre but H2 outlook good
The benchmark indices have extended gains led by surge in banks. The Sensex is up 362.58 points or 1.5 percent at 25256.39 and the Nifty is up 112.90 points or 1.5 percent at 7671.70. About 1243 shares have advanced, 1264 shares declined, and 113 shares are unchanged.
Bank Nifty is up 3.6 percent with gainers like HDFC twins, SBI and ICICI Bank. Tata Steel, GAIL, BHEL, Vedanta and ICICI Bank are top gainers.
In the currency space, rupee has bounced back from a two-year low as the US dollar retreated against major world currencies. Rupee trading at 66.54 vs a close of 66.82 yesterday.
Meanwhile, Prime Minister Narendra Modi today met captains of india inc and leading economists will take stock of the global crisis. He encouraged industry to invest while acknowledging that more needs to be done to improve the ease of doing business.