Sensex, Nifty back in green

Key Indian equity benchmarks came back in green terrain in late afternoon session, tracking firm European markets. Gains led by Metal, Basic Materials and Consumer Durables stocks along with positive trend in broader indices, helped the markets to return in positive zone.  Traders took support from the Confederation of Indian Industry’s (CII) report stating that the country will witness strong economic growth in 2019. However, upside remained capped with a private report stating that restrictions on foreign e-commerce companies would have a long-term negative impact on the foreign direct investment as well as consumers in India. Anxiety remained on the street with the government’s report showing that names of more than 1 lakh companies have been struck off the official records in the current fiscal for not carrying business activities for a long time. 

On the sectoral front, stocks related to the NBFCs were in focus, with Reserve Bank of India’s (RBI) latest report that the consolidated balance sheet of NBFCs expanded in 2017-18 and during the first half of 2018-19. It further noted that the profitability of NBFCs improved on the back of fund-based income, relatively lower NPA levels and strong capital position. However, jewellery companies shares were trading in red, despite Icra’s report indicating that gold jewellery demand is likely to grow 6-7 per cent over the medium to long-term aided by evolving lifestyle, growing disposable income and the increasing penetration of organised sector.

On the global front, European markets were trading in green, as Germany's consumer price inflation slowed sharply in December to its lowest level in eight months. As per figures from the Federal Statistical Office, the consumer price index rose 1.7 percent year-on-year following a 2.3 percent increase in November. The street had forecast an inflation rate of 1.9 percent. Asian markets were trading in green, as signs of progress in US-China trade negotiations helped investors shrug off weak manufacturing data from China. China's manufacturing sector fell into contraction in December. The latest survey from the National Bureau of Statistics showed that a PMI scored 49.4, down from the no-change mark 50.0 in November. The non-manufacturing PMI climbed to 53.8 from 53.4 in the previous month.

The BSE Sensex is currently trading at 36097.51, up by 20.79 points or 0.06% after trading in a range of 36033.95 and 36285.46. There were 18 stocks advancing against 12 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.54%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were Metal up by 1.67%, Basic Materials up by 1.04%, Consumer Durables up by 0.77%, Healthcare up by 0.70% and Consumer Disc up by 0.45%, while Telecom down by 0.52%, Energy down by 0.37%, Oil & Gas down by 0.31% and TECK down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.91%, Vedanta up by 1.55%, Sun Pharma up by 1.53%, Tata Motors up by 0.97% and Tata Motors - DVR up by 0.92%. On the flip side, Axis Bank down by 0.86%, ONGC down by 0.70%, Bharti Airtel down by 0.57%, HDFC down by 0.56% and Reliance Industries down by 0.52% were the top losers.

Meanwhile, soothing some worries, Reserve Bank of India (RBI) in its latest report has said that the consolidated balance sheet of NBFCs expanded in 2017-18 and during the first half of 2018-19 and further noted that the profitability of NBFCs improved on the back of fund-based income, relatively lower NPA levels and strong capital position.

The report found that retail loans of NBFCs witnessed a growth of 46.2% during 2017-18-on top of a growth of 21.6% during 2016-17-reflecting upbeat consumer demand, especially in the vehicle loans segment. Besides, it said that NBFCs’ lending to the micro, small and medium enterprises (MSME) sector was also robust, compensating for the deceleration in SCBs’ credit.

On the profitability indicators, the apex bank said that NBFCs’ returns on equity (RoE) and returns on assets (RoA)- were higher during 2017-18 than a year ago, even though they saw fall in the net interest margin (NIM).

The CNX Nifty is currently trading at 10873.30, up by 13.40 points or 0.12% after trading in a range of 10853.20 and 10923.55. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.67%, Tata Steel up by 2.20%, Hindalco up by 1.79%, Vedanta up by 1.76% and Sun Pharma up by 1.23%. On the flip side, Bharti Infratel down by 1.79%, HPCL down by 0.84%, Axis Bank down by 0.82%, Bharti Airtel down by 0.79% and NTPC down by 0.67% were the top losers.

Asian markets were trading in green; Straits Times advanced 15.33 points or 0.5% to 3,068.76 and Hang Seng was up by 341.50 points or 1.34% to 25,845.70.

European markets were trading in green; UK’s FTSE 100 gained 9.52 points or 0.14% to 6,743.49 and France’s CAC was up by 24.80 points or 0.53% to 4,703.54.