Benchmarks trade slightly in green in afternoon session

Indian equity benchmarks were trading slightly higher in afternoon session as bargain hunting was seen in blue chip-stocks after a sharp fall in the previous session. Though, most of the sectoral indices were trading in green, sharp selling witnessed in Oil and Gas, Banking and Metal stocks capped the markets' gains. Concerns such as increasing crude oil prices owing to the prevailing crises in Iraq weighed on the sentiment and Oil and Gas stocks were under pressure. However, the sentiments got some support as foreign portfolio investors (FPIs) bought shares worth net Rs 366.18 crore on June 18, 2014. Defensive sectors stocks such as IT, teck and FMCG were on buyer's radar as weak rupee against the US dollar boosts the margins of the export-oriented sector. Buying was also witnessed in railway stock as the government has started the exercise to relax foreign investment norms in the railways sector by permitting 100 percent Foreign Direct Investment (FDI) in high-speed train systems and dedicated freight lines. IT was top gaining index on BSE up by 1.15% whereas Oil and Gas was top loser trading lower by 1.73%. Shares of Power and infra companies surged as the government has decided to bring reforms in the infrastructure and power sectors and resolve the country’s economic challenges. Stock specific, shares in Punj Lloyd, extending its previous day’s 16% rally, has surged around 7% to Rs 59.55, after institutional investors bought over 2 million equity shares for Rs 11.5 crore through open market transaction. DVR, or Differential Voting Rights shares were also in demand and have rallied up to 11%.

On global front, Asian equity indices were trading in green with Hang Seng up by 0.17% and  Straits Times up by 0.10% as global sentiment was buoyed by the Federal Reserve's upbeat outlook of the US economy. The US Fed stated that the economic growth has rebounded in recent months and kept its short-term interest rates unchanged. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,600 and 25,500 levels respectively. The market breadth on BSE was positive, out of 2,593 stocks traded, 1,342 stocks advanced, while 1,160 stocks declined on the BSE.

The BSE Sensex is currently trading at 25,291.67 up by 45.42 points or 0.18% after trading in a range of 25,425.85 and 25,207.76. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.23%, while Small cap index up by 0.34%.

The gaining sectoral indices on the BSE were IT up by 1.15%, Teck up by 1.00%, Realty up by 0.96%, Capital Goods up by 0.59%, and Power up by 0.58%. On the flip side, Oil and Gas down by 1.73%, Bankex down by 0.12% and Metal down by 0.05% were the losing indices on BSE.    

The top gainers on the Sensex were BHEL up by 1.62%, Wirpo up by 1.55%, Infosys up by 1.40%, Tata Motors up by 1.33% and NTPC up by 1.12%. On the flip side, ONGC down by 4.38%, Maruti Suzuki down by 1.49%, Coal India down by 1.14%, RIL down by 0.73% and SBI down by 0.46% were the top losers on the BSE. Meanwhile, the Reserve Bank of India (RBI) has accorded the Self Regulatory Organisation (SRO) for NBFC-MFIs status to Micro Finance Institutions Network (MFIN). This makes MFIN, the association of the micro-finance industry, the first RBI recognised SRO in the country and is likely to promote responsible lending and client protection.

The central bank’s decision was based on the recommendations made by a sub-committee under the chairmanship of Y H Malegam which was set up by the apex bank to look into regulatory aspects of micro-lending following the Andhra Pradesh microfinance crisis of 2010.

Earlier, in November, the RBI had notified that it would accord recognition to industry associations as self regulatory organisations for companies that are engaged in micro finance such as Non-Banking Financial Companies (NBFC) and Micro Finance Institutions (MFI). Subsequently, the central bank had invited applications for recognition as SROs.

The central bank, in its notification, had stated that in order to become an SRO, the association will have to adhere to a set of functions and responsibilities such as formulating and administering a code of conduct, ensuring borrower protection, having a grievance and dispute redressal mechanism for clients, monitoring compliance by NBFC-MFIs with the regulatory framework, and submission of its financials and annual report among others. RBI further notified that an industry body should have independent directors comprising at least a third of its board, and representation of both small and large micro-lenders on the governing council.

The CNX Nifty is currently trading at 7,564.75 up by 6.55 points or 0.09% after trading in a range of 7,606.45 and 7,540.20. There were 33 stocks advancing against 17 declining on the index.

The top gainers of the Nifty were Jindal Steel up by 1.70%, Wipro up by 1.62%, Infosys up by 1.57%, BHEL up by 1.53% and Tata Motors up by 1.43%. On the flip side, McDowell down by 4.37%, ONGC down by 4.34%, Kotak Bank down by 2.99%, BPCL down by 2.44% and Maruti down by 1.44% were the major losers on the index.

Asian equity indices were trading in green; Hang Seng up by 0.17% to 23,220.54, Straits Times up by 0.10% to 3,280.42, Nikkei up by 1.59% to 15,356.71 and Taiwan Weighted up by 0.40% to 9,316.81. While, Jakarta Stock Index down by 0.33% to 4,871.56 and Shanghai Composite down by 1.18% to 2,031.56