Nifty, Sensex continue to trade in fine fettle

Domestic equity indices continued to trade in green territory in early noon session with Sensex and Nifty surpassing 34,500 and 10,450 marks, respectively. Sentiments remained up-beat as the Cabinet has approved promulgation of an ordinance to amend the 16-month-old Insolvency and Bankruptcy Code (IBC). Some support also came with a report stating that India has been ranked 44th in the year 2018, up one notch from last year, in terms of competitiveness in the annual rankings compiled by International Institute for Management Development (IMD) which saw the United States (US) topping the list. Investors took note of a report stating that banks will soon come out with a plan to resolve Rs 70,000 crore worth of non-performing assets (NPAs) in the power sector through operation and maintenance (O&M) contracts. Besides, IT index up nearly 2% as TCS, Infosys and HCL Technologies gained, which helped in lifting the markets higher. Other than IT, buying in TECK, Telecom and Healthcare helped markets to extend their gains. However, Auto Index down nearly 1% due to sharp correction in Tata Motors that was down because of disappointing earnings.

On the global front, most of the Asian markets were trading in red as investors were cautious over fresh trade-related developments as the trade dispute between the US and China remained in focus. Back on the domestic turf,  sugar stocks remained in focus with a report stating that the Cabinet is expected to approve plan to fix minimum selling price for sugar to help farmers. The food ministry has nearly finalised a series of measures to rescue farmers and mills that are grappling with the current scenario of imbalance in the demand-supply of the commodity. Besides, the food ministry is also drawing up an export strategy for sugar season 2018-19.

The BSE Sensex is currently trading at 34534.45, up by 189.54 points or 0.55% after trading in a range of 34367.83 and 34537.46. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.22%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were IT up by 1.98%, TECK up by 1.83%, Telecom up by 1.32%, Healthcare up by 0.90% and Metal up by 0.50%, while Auto down by 1.08%, Oil & Gas down by 0.83%, Industrials down by 0.64%, Realty down by 0.53% and Consumer Durables down by 0.50% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 3.18%, Infosys up by 2.73%, Bharti Airtel up by 2.72%, TCS up by 2.18% and Axis Bank up by 1.71%. On the flip side, Tata Motors down by 6.47%, Tata Motors - DVR down by 4.06%, ONGC down by 2.71%, Adani Ports down by 0.94% and Indusind Bank down by 0.75% were the top losers.

Meanwhile, the Cabinet headed by Prime Minister Narendra Modi has approved promulgation of an ordinance to amend the 16-month-old Insolvency and Bankruptcy Code (IBC). The ordinance proposes to classify home buyers as financial creditors at par with lenders to help them quickly get refunds from defaulting companies. The amendment comes months after a new Section 29A was added into the bankruptcy code in November, introducing four layers of ineligibility for potential bidders.The Minister for Law and Justice Ravi Shankar Prasad said ‘it's a new legislation, the Cabinet has approved it’. However, he refused to divulge further details citing constitutional provisions. On if the Cabinet has cleared some relief measures for home buyers as per the recommendations of the panel, he said, ‘An Ordinance, till it is approved by the President, I cannot speak about the details’.

The present amendment is based on recommendations of a 14-member Insolvency Law Committee that had earlier suggested a slew of measures, including addressing woes of home buyers and making recoveries easier for lenders. The panel had suggested to the Ministry of Corporate Affairs that home buyers should be treated as financial creditors, which will allow them to equitably participate in an insolvency resolution process. It had also suggested relaxations for micro, small and medium enterprises (MSMEs) under the IBC by allowing promoters to bid.

The CNX Nifty is currently trading at 10476.65, up by 46.30 points or 0.44% after trading in a range of 10419.80 and 10478.60. There were 26 stocks advancing against 23 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Sun Pharma up by 3.21%, Infosys up by 2.60%, Bharti Airtel up by 2.58%, TCS up by 2.38% and HCL Tech up by 2.07%. On the flip side, Tata Motors down by 6.41%, Grasim Industries down by 2.85%, ONGC down by 2.68%, GAIL India down by 2.51% and BPCL down by 1.86% were the top losers.

Most of the Asian markets were trading in red; Nikkei 225 decreased 252.73 points or 1.11% to 22,437.0, Hang Seng declined 42.99 points or 0.14% to 30,622.65, FTSE Bursa Malaysia KLCI slipped 21.75 points or 1.21% to 1,782.50, Shanghai Composite fell 11.81 points or 0.37% to 3,157.16, and KOSPI Index was down by 5.65 points or 0.23% to 2,466.26.

On the flip side, Taiwan Weighted increased 50.75 points or 0.47% to 10,936.93 and Jakarta Composite advanced 138.13 points or 2.38% to 5,930.13.