Benchmarks pare some early losses; still continue to trade in red

Recovering from day’s low, benchmark equity indices have gained momentum however were still trading below the neutral line on persistent profit-booking by funds and retail investors, amid weak cues from Asian markets. Sentiments remained down-beat with the report that Oil prices has reversed earlier gains on Thursday following a rise in US stockpiles but look set to post their first rise in three weeks after the battered market took heart from a tentative deal by major producers to freeze output at January highs. However, investors got some support with Moody's Investors Service stating that Indian economy will grow at 7.5 percent in 2016 and 2017 as it is relatively less exposed to external headwinds, like China slowdown, and will benefit from lower commodity prices. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 419 crore on February 18, 2016. On the global front, Asian stock markets slipped on Friday on lingering concerns about the slump in oil prices and uncertain prospects for the global economy. US stock indices closed modestly lower on Thursday, as investors stepped back after a three-day rally.

Back home, stocks from Realty, Power and Auto counters were supporting the markets’ uptrend, while those from Oil & Gas, Metal and PSU counters were adding to the underlying cautious undertone. In scrip specific development, shares of SpiceJet have surged after latest data by the Directorate General of Civil Aviation (DGCA) indicate that the airline has managed to register the highest passenger load factor in January. Furthermore, Shriram EPC has rallied after the company bagged contracts worth over Rs 438 crore from the Ministry of Road & Highways and Government of Jharkhand.

The market breadth on BSE was positive, out of 1969 stocks traded, 984 stocks advanced, while 877 stocks declined on the BSE. 

The BSE Sensex is currently trading at 23623.80, down by 25.42 points or 0.11% after trading in a range of 23508.36 and 23673.79. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in mix; the BSE Mid cap index was down by 0.05%, while Small cap index up by 0.11%.

The top gaining sectoral indices on the BSE were Realty up by 0.69%, Power up by 0.66%, Auto up by 0.43%, Consumer Durables up by 0.34% and TECK up by 0.18%, while Oil & Gas down by 1.23%, Metal down by 0.40%, PSU down by 0.24%, Capital Goods down by 0.19% and FMCG down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.01%, Mahindra & Mahindra up by 1.90%, ICICI Bank up by 1.63%, Bajaj Auto up by 1.37% and Hero MotoCorp up by 1.23%. On the flip side, Coal India down by 1.76%, Maruti Suzuki down by 1.65%, Adani Ports &Special down by 1.17%, Lupin down by 1.13% and HDFC down by 1.13% were the top losers.

Meanwhile, much awaited National Textile Policy is nearing finalization and is soon to be issued before the end of April 2016. Union Textiles Minister Santosh Gangwar on the sidelines of the 'Make in India' summit has said that the government may unveil the new national textile policy by April this year. The new policy aims to achieve $300 billion textile exports by 2024-25 and create an additional 35 million jobs.

The government is mainly focusing on manufacturing of value added products and export oriented goods that will benefit the economy. The policy is expected to accommodate a series of reforms to make India a truly manufacturing hub in textiles sectors so that Indian textiles players can take maximum advantages of the slowdown in Chinese textiles industry.

Expressing his confidence that the policy will be released during the upcoming Budget session of Parliament, Gangwar said that the consultations with all stakeholders are in progress. It also seeks to address concerns related to skilled workforce, labour reforms, attracting investments in the textile sector and providing a future road map for the textiles and clothing industry.  He said that the area specific schemes have been formulated for the entire textile value chain.

Keeping in view various domestic and international developments in the textile industry and the need for a road map, the Ministry of Textiles had initiated the process of reviewing the National Textiles Policy, 2000.

The CNX Nifty is currently trading at 7181.50, down by 10.25 points or 0.14% after trading in a range of 7145.95 and 7196.70. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were PNB up by 2.55%, SBI up by 1.78%, Mahindra & Mahindra up by 1.73%, Idea Cellular up by 1.67% and ICICI Bank up by 1.61%. On the flip side, BPCL down by 3.25%, Coal India down by 1.90%, Vedanta down by 1.71%, Maruti Suzuki down by 1.67% and Cairn India down by 1.42% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 was down by 2.16%, Hang Seng down by 0.46%, Jakarta Composite down by 1.15%, Taiwan Weighted down by 0.21%, Shanghai Composite down by 0.51%, and FTSE Bursa Malaysia KLCI was down by 0.15%. on the other hand, KOSPI Index was up by 0.13%.