Markets erase losses; enter into positive territory

Erasing all of their losses, Indian equity benchmarks entered into positive territory in late afternoon session, on the back of buying in IT, Utilities and Power stocks. Traders took some support with the report that the Securities and Exchange Board of India (Sebi) approved a slew of reform measures to provide a fillip to the domestic markets, which include approval to options trading in commodity derivatives, unified licence for brokers, mutual fund investments through digital wallets, stricter public offer norms and enhanced safeguards to curb illicit fund flows. The sentiments got soothed with the report that bank credit growth improved to 5.52 percent in the first fortnight of the financial year (FY18), after falling to a whopping six-decade low of 5.08 per cent in the previous financial year (FY17). As per the Reserve Bank of India data, credit in the banking system rose to Rs 76.31 trillion in the fortnight to April 14 from Rs 72.31 trillion in the week to April 15, 2016. Finance Minister Arun Jaitley's statement asserting that the government was giving top priority to addressing the issue of bad loans, also helped the markets to erased the losses.

On the global front, European markets were trading in red as investors waited to hear from European Central Bank President Mario Draghi and digested fresh corporate earnings. However, Asian markets were trading in green. Back home, in scrip specific development, Omax Autos jumped higher after the company received revised contract from Ministry of Railways. Based on the performance of the company’s Railways Division during September 2016 to February, 2017, Railway Board has increased its ordered quantity of coaches for fitment of Bio-digester tanks to 3087 coaches from 1371 coaches earlier. The value of the increased order, net off earlier business awarded, is around Rs 60 crore.

The BSE Sensex is currently trading at 30165.12, up by 31.77 points or 0.11% after trading in a range of 30041.99 and 30184.22. There were 14 stocks advancing against 15 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 0.24%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were IT up by 0.72%, Utilities up by 0.68%, Power up by 0.63%, TECK up by 0.63% and Consumer Durables up by 0.58%, while Metal down by 0.71%, Healthcare down by 0.29%, Energy down by 0.11% and Basic Materials down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.04%, Power Grid up by 1.80%, GAIL India up by 1.04%, Wipro up by 0.95% and HDFC Bank up by 0.88%. On the flip side, Axis Bank down by 1.60%, Tata Steel down by 1.46%, Lupin down by 1.21%, Mahindra & Mahindra down by 0.78% and SBI down by 0.73% were the top losers.

Meanwhile, in order to provide a fillip to the domestic markets, the Securities and Exchange Board of India (Sebi) has approved a slew of reform measures, which include approval to options trading in commodity derivatives, unified licence for brokers, mutual fund investments through digital wallets, stricter public offer norms and enhanced safeguards to curb illicit fund flows.

The regulator has also decided to exempt scheduled banks and financial institutions from certain provisions of the regulations pertaining to preferential allotments in an effort to help them to recover dues amid growing non- performing assets (NPAs). Besides, to deepen corporate bond market, it has cleared a new framework for consolidation and reissuance of debt securities. Liquidity in the secondary market for corporate bonds will be increased by way of minimal number of ISINs (International Securities Identification Numbers). Under the framework, approved by the Sebi board during its meeting here, an issuer will be permitted a maximum of 12 ISINs maturing per financial year.

Furthermore, Sebi has tightened the norms pertaining to participatory notes (P-Notes) to check black money flow into the securities market. The markets regulator also said that major non-banking finance companies (NBFCs) will be eligible for quota reserved for qualified institutional buyers in IPO and entities coming out with public offers including initial share sales will be required to appoint a monitoring agency to keep tabs on the utilisation of the proceeds in case the offer size is more than Rs 100 crore.

The CNX Nifty is currently trading at 9357.45, up by 5.60 points or 0.06% after trading in a range of 9329.25 and 9367.15. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.97%, Tata Motors up by 2.09%, Indian Oil up by 2.06%, Power Grid up by 1.73% and HCL Tech. up by 1.58%. On the flip side, Axis Bank down by 1.62%, Grasim Industries down by 1.57%, Aurobindo Pharma down by 1.42%, Tata Steel down by 1.33% and Lupin down by 1.20% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 1.62 points or 0.07% to 2,209.46, Taiwan Weighted increased 4.17 points or 0.04% to 9,860.62, Shanghai Composite increased 11.34 points or 0.36% to 3,152.19 and Hang Seng increased 120.05 points or 0.49% to 24,698.48. On the flip side, Nikkei 225 decreased 37.56 points or 0.19% to 19,251.87, Jakarta Composite decreased 11.87 points or 0.21% to 5,714.66 and FTSE Bursa Malaysia KLCI decreased 0.92 points or 0.05% to 1,768.00.

All the European markets were trading in red; UK’s FTSE 100 decreased 38.65 points or 0.53% to 7,250.07, Germany’s DAX decreased 34.86 points or 0.28% to 12,437.94 and France’s CAC decreased 21.05 points or 0.4% to 5,266.83.