Barometer gauges maintain gains in early noon session

Indian markets maintained their upside move in early noon session, with Sensex and Nifty gaining of 57 and 9 points respectively amid global headwinds. Realty sector witnessed the maximum gains in trade followed by Energy, IT and FMCG sectors. Investors’ mood was positive with a report that in order to attract big foreign players in the single-brand retail sector, the government is considering measures to relax the mandatory 30 per cent local sourcing norms by allowing them more time to comply with the regulations. Big single-brand retail firms may also be permitted to open online stores before setting up brick-and-mortar shops. Market-men also took some encouragement as United Nations in its World Economic Situation and Prospects (WESP) 2019 report has said it is expected that India's economy will grow at 7.4 per cent during the current financial year (FY19) and improve to 7.6 per cent in the next fiscal (FY20). It also expects India's gross domestic product (GDP) to expand by 7.4 per cent in FY21. Meanwhile, traders took note of a report that India and China have begun affecting the world economy much more today and that needs to be taken into account for having a relook at the global trade and financial systems.

On the global front, Asian markets were trading mostly in green, as positive U.S. earnings reports reassured investors that the world's largest economy was on track. Back on streets, on scrip specific developments, Maruti Suzuki surged as the company has signed a Memorandum of Agreement (MoA) with Government of Haryana to set up Japan-India Institute for Manufacturing (JIM), a model ITI, at Uncha Majra village in Gurugram district. Besides, United Spirits gained on reporting 42.84% rise in its net profit at Rs 192.40 crore for the quarter under review as compared to Rs 134.70 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 36165.00, up by 56.53 points or 0.16% after trading in a range of 35996.68 and 36225.51. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.06%, while Small cap index was down by 0.25%.

The top gaining sectoral indices on the BSE were Realty up by 2.47%, Energy up by 1.06%, IT up by 0.44%, FMCG up by 0.36% and Oil & Gas up by 0.19%, while Telecom down by 2.23%, Basic Materials down by 0.76%, Auto down by 0.62%, Industrials down by 0.60% and Metal was down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.66%, Power Grid Corporation up by 0.97%, ITC up by 0.92%, Asian Paints up by 0.80% and TCS was up by 0.60%. On the flip side, Tata Motors - DVR down by 2.98%, Tata Motors down by 2.83%, Bharti Airtel down by 1.97%, Yes Bank down by 1.72% and ICICI Bank was down by 1.46% were the top losers.

Meanwhile, the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) jumped Rs 79,513 crore at the end of December 2018, amid markets regulator SEBI relaxing norms for clubbing of investment limits by well-regulated foreign investors.

According to SEBI data, total value of P-note investments in Indian markets including equity, debt and derivatives, at December end climbed to Rs 79,513 crore from Rs 79,247 crore at the end of November. In October, the value of P-note investments stood at Rs 66,587 crore. Of the total, P-note holdings in equities at December-end were at Rs 56,747 crore, while in debts and derivatives were at Rs 21,811 crore and Rs 977 crore respectively. Besides, the quantum of FPI investments via P-notes remains unchanged at 2.5 per cent during the period under review.

FPIs have stamped their influence strongly in 2018 after their stiff resistance to the proposed changes in norms for recording beneficiary ownership of their funds forced the regulator to have a re-think and eventually change the rules. P-note investments were on a decline since June 2017 and hit an over eight-year low in September 2017. However, it rose in October 2017 but again dropped in November and this trend continued till July 2018.

The CNX Nifty is currently trading at 10840.85, up by 9.35 points or 0.09% after trading in a range of 10798.65 and 10858.40. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 1.60%, ITC up by 1.01%, HPCL up by 0.93%, Dr. Reddys Lab up by 0.87% and TCS was up by 0.83%. On the flip side, Bharti Infratel down by 3.75%, Tata Motors down by 2.77%, UPL down by 2.18%, Bharti Airtel down by 1.81% and Yes Bank was down by 1.70% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 68.88 points or 0.26% to 27,077.08, Taiwan Weighted strengthened 20.27points or 0.21% to 9,866.67, Straits Times advanced 12.59 points or 0.40% to 3,183.70, Shanghai Composite gained 10.57 points or 0.41% to 2,591.57, Jakarta Composite soared 12.85 points or 0.20% to 6,464.02 and KOSPI was up by 12.72 points or 0.60% to 2,140.50. On the other hand Nikkei 225 was down by 24.78 points or 0.14% to 20,568.94.