Markets trade in tight-band with positive bias

Indian equity benchmarks were trading in tight-band with positive bias in late afternoon session. Sentiments remained optimistic with the report that Prime Minister Narendra Modi is setting up a task force under the chairmanship of the Vice Chairman of NITI Aayog Dr Arvind Panagriya, with an aim to create policies on employment based on credible data. The Prime Minister has directed that this task be expedited so that policies on employment can be formulated with a proper appreciation of impacts, based on credible data. Traders took encouragement with the private report that average crude oil prices will be around $45 for the next half of this year and this, coupled with positive macro fundamentals, could translate into better growth numbers for the country. Besides, investors also took note of Icra’s latest report stating that securitisation transaction rose 34% in FY17 to Rs 90,000 crore on the back of a strong growth in priority sector qualifying assets. Hopes of higher agricultural and economic growth post better monsoon forecast by Indian Meteorological Department (IMD) too added to the sentiments.

On the global front, European markets were trading in red as investors digested the latest batch of corporate earnings and reacted to strong gains in oil prices. However, Asian markets were trading in green. Back home, in scrip specific development, IL&FS Transportation Networks was trading higher after the company’s wholly owned subsidiary -- IIPL Laos, Singapore entered into a contract for rehabilitation and development works of the National Road No 1 (section F) with a length of 165 km including construction of 33 new bridges in the People’s Democratic Republic of Laos. The contract is awarded to a consortium in which IIPL Laos is the lead member having 90% stake.

The BSE Sensex is currently trading at 30294.62, up by 46.45 points or 0.15% after trading in a range of 30257.21 and 30366.43. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.07%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Consumer Disc up by 1.07%, Consumer Durables up by 1.00%, Metal up by 0.98%, Auto up by 0.89% and Basic Materials up by 0.75%, while Power down by 1.02%, Utilities down by 0.87%, Oil & Gas down by 0.84%, PSU down by 0.81% and Capital Goods down by 0.64% were the top losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 3.00%, Bajaj Auto up by 2.61%, ITC up by 1.55%, Asian Paints up by 1.27% and Adani Ports & SEZ up by 1.13%. On the flip side, GAIL India down by 2.65%, Bharti Airtel down by 2.12%, ONGC down by 1.68%, Hindustan Unilever down by 1.35% and Coal India down by 1.11% were the top losers.

Meanwhile, driven by rising growth in requirement of priority sector qualifying assets, especially by the foreign banks, loan securitisation volumes rose 34 per cent to touch a peak of Rs 90,000 crore in FY17, the highest volume seen for a single year in India. According to the credit rating agency- ICRA, the securitisation posted a strong growth for the second consecutive year and the pace of growth may continue in FY18 too.

The report further said that securitisation of loan assets by issuing pass through certificates (PTCs) transactions rose 72 per cent to Rs. 43,000 crore in FY17. There was some increase in securitisation of non-priority sector assets too and Direct Assignment (DA) transactions grew by 12 per cent to Rs. 47,000 crore during the fiscal. ICRA also noted that transactions banked by trade receivables are also picking up, and were worth Rs 1200 crore in FY17.

The agency further noted that the PTC market has grown on the back of regulatory developments such as the revised priority sector lending (PSL) guidelines from the central bank, which decreed lenders to achieve various sub-targets within the overall PSL and also progressively increased the PSL target for foreign banks.

The CNX Nifty is currently trading at 9432.95, up by 25.65 points or 0.27% after trading in a range of 9422.75 and 9450.65. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 5.85%, Zee Entertainment up by 4.94%, Hindalco up by 3.71%, Hero MotoCorp up by 2.97% and Bharti Infratel up by 2.92%. On the flip side, GAIL India down by 2.62%, Indiabulls Housing Finance down by 2.28%, Bharti Airtel down by 2.15%, ONGC down by 1.97% and Indian Oil Corporation down by 1.93% were the top losers.

All the Asian markets were trading in green; Shanghai Composite increased 8.72 points or 0.29% to 3,061.50, FTSE Bursa Malaysia KLCI increased 9.82 points or 0.56% to 1,776.38, KOSPI Index increased 26.25 points or 1.16% to 2,296.37, Taiwan Weighted increased 33.16 points or 0.33% to 10,001.48, Nikkei 225 increased 61.46 points or 0.31% to 19,961.55 and Hang Seng increased 110.13 points or 0.44% to 25,125.55.

European markets were trading mostly in red; UK’s FTSE 100 decreased 4.45 points or 0.06% to 7,380.79 and France’s CAC decreased 0.44 points or 0.01% to 5,400.02. On the flip side, Germany’s DAX increased 5.91 points or 0.05% to 12,763.37.