Benchmarks continue firm trade in late afternoon session

Indian equity benchmarks continued their firm trade in the late afternoon session on account of buying in frontline blue chip counters taking cues from regional counterparts. The sentiments were on optimistic note as hopes increased that Reserve Bank of India (RBI) could cut rates by as much as 50 basis points next month after the government slashed the country’s retail savings rate last week. Traders were seen piling up position in Realty, FMCG and Bankex stocks while selling was witnessed in IT, Metal and TECK sector stocks. Hectic buying activity was witnessed in Indian jewellery firms after the jewellers called off a 19-day strike late on Saturday following the government’s assurance that the excise department would not harass the jewellers while collecting a new tax. In scrip specific development, National Buildings Construction Corporation (NBCC) was trading in green on receiving board’s approval for takeover of Hindustan Steelworks Construction (HSCL) after restructuring its Balance Sheet involving waiver off Government Loans with interest up to the date of takeover and providing further contribution for contingent liabilities and payment of other liabilities including bank loans.

On the global front, the Asian markets were trading mixed, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,650 and 25,100 levels respectively. The market breadth on BSE was positive in the ratio of 1370:1158 while 169 scrips remained unchanged.

The BSE Sensex is currently trading at 25122.44, up by 169.70 points or 0.68% after trading in a range of 24988.27 and 25143.96. There were 17 stocks advancing against 12 stocks declining on the index while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.77%, while Small cap index up by 0.94%.

The gaining sectoral indices on the BSE were Realty up by 1.56%, FMCG up by 1.24%, Bankex up by 1.10%, Consumer Durables up by 1.00%, Capital Goods up by 0.98% while, IT down by 0.17%, Metal down by 0.14%, TECK down by 0.02% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.47%, Hindustan Unilever up by 2.23%, SBI up by 2.22%, ITC up by 2.00% and Tata Motors up by 1.90%.

On the flip side, Asian Paints down by 2.39%, Lupin down by 1.75%, Hero MotoCorp down by 1.55%, BHEL down by 1.41% and GAIL India down by 0.85% were the top losers.

Meanwhile, government in the third phase of reverse e-auction for stranded gas-based plants (SGPs), have announced revival of 9 gas-based power plants with total installed capacity of 5,942 MW, which successfully bid electricity at Rs 4.70 per unit for six months beginning April 1. Earlier the phase III of the auctions were deferred to March 20 after the plants had said no to subsidy on the original date of the auctions on March 15. For the first and second phases auctions were held in May and September respectively last year.

In the auction process concluded on March 20, nine plants emerged as preferred bidders and were allocated 7.62 million standard cubic meter per day (mscmd) e-bid RLNG (reliquefied natural gas). These plants would generate 6.79 billion units of which will be supplied at or below Rs 4.70 per unit to the purchaser discoms during the period from April 1, 2016 to September 30, 2016.

The government has further detailed that the reverse-auction resulted in aggressive negative bidding with the lowest bid at Rs 0.03 per unit. As a result there is estimated savings of Rs18.29 crore to the government's Power System Development Fund. A total of 10 mscmd of RLNG will be imported to run SGPs and domestic gas plants (DGPs) between April 1 to September 30, while 8.9 mscmd of gas will be imported for SGPs, 1.1 mscmd will be allocated to DGPs. In Phase III, the highest allocation was for Ratnagiri Gas and Power. The plant will generate 2.087 billion units between April 1 and September 30 using 2.13 million standard cubic metres a day of R-LNG. Lanco Group’s Kondapalli plant in Andhra Pradesh was allotted 1.55 million standard cubic metres a day of the imported natural gas for generating 1.408 billion units. GMR Energy’s two plants and one plant of GVK Industries were among the other major allottees of the imported natural gas.

Last year, the government had introduced a mechanism under which stranded gas-based power plants were allowed to fire up their plants using R-LNG. Tax breaks were offered for transport of the fuel and a subsidy from the PSDF was given directly to the electricity distribution utilities to keep the cost of power low. The government is offering Rs 1,400 crore subsidy for SGPs and Rs 200 crore to the DGPs for buying imported gas to run their plants. It had, in March last year, allowed gas imports by way of e-auctions for 31 gas-based power units, with a capacity of 14,000 MW, lying idle for lack of feed stock.

The CNX Nifty is currently trading at 7655.80, up by 51.45 points or 0.68% after trading in a range of 7617.70 and 7662.55. There were 32 stocks advancing against 17 stocks declining on the index while 1 stock remained unchanged.

The top gainers on Nifty were Ambuja Cement up by 4.26%, Ultratech Cement up by 3.72%, Bharti Airtel up by 2.73%, ACC up by 2.34% and SBI up by 2.27%.

On the flip side, Asian Paints down by 2.30%, Hero MotoCorp down by 1.52%, BHEL down by 1.41%, Lupin down by 1.39% and Wipro down by 1.22% were the top losers.

The Asian markets were trading on a mixed note; Taiwan Weighted increased 1.99 points or 0.02% to 8,812.70, Hang Seng increased 12.52 points or 0.06% to 20,684.15 and Shanghai Composite increased 63.65 points or 2.15% to 3,018.80.

On the other hand, Jakarta Composite decreased 19.2 points or 0.39% to 4,866.50, FTSE Bursa Malaysia KLCI decreased 2.67 points or 0.16% to 1,713.67 and KOSPI Index decreased 2.36 points or 0.12% to 1,989.76.

Japanese stock exchange was closed on account of ‘Spring Equinox Day’ holiday.

The European markets were trading in red; UK’s FTSE 100 decreased 17.08 points or 0.28% to 6,172.56, Germany’s DAX decreased 57.18 points or 0.57% to 9,893.62 and France’s CAC decreased 33.57 points or 0.75% to 4,428.94.