GST Collections, RBI's NPA Norms, and Top Cues in Focus Today

Tue, 17 Apr Pre-Open | Parth Parekh, TM Team

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Share markets in India closed marginally higher yesterday. Gains were largely seen in the metal sector and IT sector, while oil & gas stocks and banking stocks ended the day lower.

At the closing bell yesterday, the BSE Sensex stood higher by 112 points (up 0.4%) and the NSE Nifty closed up by 47 points (up 0.4%). The BSE Mid Cap index ended the day down 0.2%, while the BSE Small Cap index ended the day up by 0.2%.

Top Stocks in Focus Today

Gruh Finance share price is likely to be in focus today after the company informed bourses that its board has recommended issue of bonus shares in the ratio of 1:1 to its shareholders, subject to the approval of shareholders.

The board also recommended a dividend of Rs 3.3 per equity share of face value of Rs 2 each for the financial year ended March 31, 2018.

Infosys share price will continue to be in focusafter the management guided for 100 bps reduction in EBIT (earnings before interest & tax) margin guidance for FY19.

RBI Plans to Relax NPA Norms

Reserve Bank of India (RBI) may relax some of the stringent norms for treatment of bad loans that it announced in February without diluting their spirit.

The finance ministry has made a case for providing some relief, especially for small and medium enterprises, as the tighter rules could force defaulters into rapid bankruptcy, which could further dent jobs generation.

As per the news, the one-day non-performing asset (NPA) classification norm may be extended to 30 days and the requirement that a resolution plan has to be approved by all lenders could be lowered to 75%.

How this pans out remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

GST Inflows Seen to Improve

According to a leading financial daily, Goods and Services Tax (GST) collections are expected to bounce back to Rs 930-950 billion, and perhaps more, when returns for March 2018 are filed by April 20.

This is against the average of about Rs 870 billion in the past five months.

Total GST collections - the sum of Central, State and integrated GST - have been on a rollercoaster since the new tax regime came into force in July 2017. After three months of robust collections - in excess of Rs 900 billion each month - they dipped in the following two months.

However the situation seems seems to be improving as GST collections rose to Rs 893 billion in March as opposed to Rs 840 billion in December last year.

A steady stream of GST collections could boost the government's chances of meeting its fiscal deficit target.

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