Sensex, Nifty trade higher in range-bound session

Indian bourses added some gains in late afternoon session to edge up in range-bound trade amid higher opening in European markets coupled with buying in Oil & Gas, Energy and PSU counter stocks. Traders took some support with Commerce & Industry Minister Nirmala Sitharaman’s statement that the government’s e-market (GeM) platform has led to a 20-30 percent reduction in prices compared to before and added that use of GeM portal by central and state departments for procurement of goods and services will help in saving taxpayers’ money. Besides, adding to the optimism  among the investors, ICRA in its latest report said that the long-term demand outlook for renewable energy sector in India remains strong, on the back of improving cost competitiveness of wind and solar power along with favourable policy support from both Central and state governments. However, upside remained capped ahead of consumer inflation data for June and IIP data for May to be released after market hours today. Market participants were also keeping an eye on corporate earnings including from Tata Consultancy Services on Thursday and Infosys on Friday.

On the global front, European markets were trading in green, as investors digested corporate earnings and looked ahead to comments from Federal Reserve Chair Janet Yellen. Asian markets were trading mixed. Back home, in scrip specific development, Bank of Baroda traded higher after the bank received an approval for issuance of AT-1 Capital Bonds compliant with Basel III Capital Regulations of the Reserve Bank of India (RBI) for minimum amount of Rs 500 crore with Green Shoe Option, total issuance not to exceed Rs 3,000 crore, in single or multiple tranches. The Finance Committee of the Bank at its meeting held on July 12, 2017 has approved for the same.

The BSE Sensex is currently trading at 31783.14, up by 36.05 points or 0.11% after trading in a range of 31731.43 and 31865.69. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.77%, while Small cap index was up by 0.48%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.68%, Energy up by 1.32%, PSU up by 1.21%, Telecom up by 0.99% and Industrials up by 0.74%, while IT down by 0.22% were the only losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.81%, Hindustan Unilever up by 1.62%, Tata Motors - DVR up by 1.21%, Tata Motors up by 1.11% and Reliance Industries up by 0.99%. On the flip side, TCS down by 0.81%, Hero MotoCorp down by 0.73%, ITC down by 0.53%, HDFC down by 0.48% and Mahindra & Mahindra down by 0.44% were the top losers.

Meanwhile, credit rating agency, ICRA in its latest report has said that the long-term demand outlook for renewable energy sector in India remains strong, on the back of improving cost competitiveness of wind and solar power along with favourable policy support from both Central and state governments. The report further added that a fundamental improvement in the financial position of the distribution utilities remains important in the long run, which is dependent upon their ability to curtail distribution loss levels in line with targets and tariff adequacy.

According to the report the reasons of improvement in cost competitiveness of wind and solar power are - competitive bidding process and a significant fall in photovoltaics (PV) module price levels over the last three year-period for solar players. However, the rating agency said that the sector continues to face regulatory challenges related to Renewable Purchase Obligation (RPO) norms and its compliance, continuing delays in payments from distribution utilities and risk of forced back down by the utilities in a few states.

ICRA study further expects an addition of 7-7.5 GW in solar capacity in the current financial year owing to the strong pipeline of projects awarded in the last 12-month period, while about the wind energy segment capacity addition, it said that in the near term, it will be critically dependent upon the finalisation of bidding plans by distribution utilities and the Ministry of New and Renewable Energy.

The CNX Nifty is currently trading at 9810.05, up by 24.00 points or 0.25% after trading in a range of 9787.70 and 9823.00. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.90%, ACC up by 2.81%, Bharti Infratel up by 2.55%, GAIL India up by 2.23% and Hindustan Unilever up by 1.81%. On the flip side, TCS down by 0.92%, Aurobindo Pharma down by 0.83%, Hero MotoCorp down by 0.80%, HDFC down by 0.68% and ITC down by 0.48% were the top losers.

Asian markets were trading mixed; Taiwan Weighted increased 5.11 points or 0.05% to 10,420.68, Jakarta Composite increased 48.72 points or 0.84% to 5,822.04 and Hang Seng increased 166 points or 0.64% to 26,043.64. On the flip side, Nikkei 225 decreased 97.1 points or 0.48% to 20,098.38, Shanghai Composite decreased 5.49 points or 0.17% to 3,197.54, KOSPI Index decreased 4.23 points or 0.18% to 2,391.77 and FTSE Bursa Malaysia KLCI decreased 2.01 points or 0.11% to 1,753.02.

All European markets were trading in green; France’s CAC rose 33.4 points or 0.65% to 5,174.00, UK’s FTSE 100 increased 45.16 points or 0.62% to 7,374.92 and Germany’s DAX was up by 51.33 points or 0.41% to 12,488.35.