Markets trade flat after a soft start

Indian equity markets are trading near neutral line with modest losses in early deals, after feeble opening, as investors remained cautious and refrained from any major buying activity ahead of the expiry of April derivative contracts today. There was some cautiousness in the markets with Fitch ratings’ statement that the rapid rise in private-sector debt in emerging markets (EMs), particularly in foreign currency, has increased risks to their economies at a time of heightened global uncertainty. However, the session was productive for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.25-0.40%. Traders got some support with report that foreign direct investment (FDI) into the country has increased 37 percent after the launch of 'Make in India' programme till February this year. The overseas inflows grew 29 percent during the period compared to the 15-month period prior to the launch.

In the scrip specific development, Jubilant FoodWorks dropped 5% on the National Stock Exchange (NSE) after a huge block deal was executed in the counter.

On the global front, US markets ended modestly higher following easing of fears of Federal Reserve’s strong signal it would raise interest rates in June, though a slump in Apple shares weighed on the Nasdaq index.  Asian markets were trading mostly lower after the Bank of Japan held off on expanding monetary stimulus and maintained its pledge to increase base money, or cash and deposits in circulation, at an annual pace of 80 trillion yen ($730 billion).

Back home, traders were seen piling up position in Realty, Banking, PSU, Consumer Durables and Metal, while selling was witnessed in FMCG, IT, Auto, Oil & Gas and Power. The market breadth on BSE was positive in the ratio of 890: 565, while 74 scrips remained unchanged.

The BSE Sensex is currently trading at 26060.69, down by 3.43 points or 0.01% after trading in a range of 26009.37 and 26100.54. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index was higher by 0.27%.

The top gaining sectoral indices on the BSE were Realty up by 2.03%, Bankex up by 0.69%, PSU up by 0.20%, Consumer Durables up by 0.06% and Metal up by 0.03%, while FMCG down by 0.55%, IT down by 0.23%, Auto down by 0.20%, Oil & Gas down by 0.09% and Power down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.32%, ICICI Bank up by 1.02%, Axis Bank up by 0.91%, Coal India up by 0.84% and SBI up by 0.56%. On the flip side, Maruti Suzuki down by 1.48%, ITC down by 1.29%, Adani Ports &Special down by 0.93%, Asian Paints down by 0.62% and Reliance Industries down by 0.58% were the top losers.

Meanwhile, the Joint Parliament Standing Committee looking into the Insolvency and Bankruptcy Code Bill has cleared the proposed bankruptcy law, increasing the chances of the long-delayed Bankruptcy Code securing parliamentary assent in the current session. Finance minister Arun Jaitley said that “The code has been cleared by the Parliament Standing Committee and is likely to be discussed in the current Budget session of Parliament.”

The code, touted as a big reform initiative to boost the ease of doing business, would help expedite unlocking of distressed corporate assets and boost creditors’ ability to recover debts before they are truly sunk. It will be supplemented with the requisite institution building (the National Company Law Tribunal in the main) and creation of a pool of insolvency professionals.

Among the major changes that the code - which will subsume many existing laws including the Sick Industrial Companies Act - would bring includes, making decision of the majority of the lenders binding on other lenders and defaulting promoters; allowing unsecured creditors to initiate liquidation and loan restructuring; and giving unsecured creditors precedence over others except secured lenders when it comes to laying hands on the liquidated firms’ assets.

The code was introduced in the Lok Sabha in December 2015 and was sent to the panel comprising members from both Houses to reach a consensus on the various provisions. The Finance Minister also said that the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act and Debt Recovery Tribunal (DRT) Act have been amended to make the recovery process more efficient and expedient.

The CNX Nifty is currently trading at 7976.80, down by 3.10 points or 0.04% after trading in a range of 7959.10 and 7990.20. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.24%, Yes Bank up by 1.75%, Idea Cellular up by 1.08%, Aurobindo Pharma up by 0.93% and Axis Bank up by 0.89%. On the flip side, HCL Tech. down by 2.48%, Maruti Suzuki down by 1.44%, ITC down by 1.30%, Adani Ports &Special down by 1.26% and Asian Paints down by 0.67% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 decreased 526.18 points or 3.04% to 16,764.31, Taiwan Weighted decreased 94.77 points or 1.11% to 8,468.28, Shanghai Composite decreased 20.03 points or 0.68% to 2,933.64, KOSPI Index decreased 12.96 points or 0.64% to 2,002.44, FTSE Bursa Malaysia KLCI decreased 12.84 points or 0.76% to 1,679.50 and Jakarta Composite decreased 0.81 points or 0.02% to 4,844.85.

On the flip side, Hang Seng increased 105.76 points or 0.5% to 21,467.36