Sensex, Nifty extend gains

The equity benchmarks extended their gains in late afternoon session, following firm European markets. Adding optimism among the traders, the Reserve Bank of India (RBI) said that it will inject Rs 37,500 crore into the system through the purchase of government securities in February to increase liquidity. The RBI also said it has been monitoring the evolving liquidity conditions and durable liquidity requirements of the system. Some relief also came with credit rating agency, ICRA’s report stating that while the number of insolvency cases are expected to pile up over the next few quarters, timely conclusion of cases within the law mandated 180-270 days can free up as much as Rs 67,000 crore to the system. On the sectoral front, Auto Parts & Equipment companies stocks were trading higher, as the government slashed customs duty on import of parts and components for electric vehicles (EVs). The customs duty has been lowered to 10-15 per cent from 15-30 per cent. 

On the global front, European markets were trading in green, as the survey data from the GfK showed that Germany's consumer confidence is set to improve in February, defying expectations for a modest easing. The forward-looking GfK consumer confidence indicator for February rose to 10.8 from a revised 10.5 in January. Income expectations and propensity to buy improved further, while households assessed the general economic outlook less optimistically for a fourth straight month. Further, Asian markets were also trading in green.

The BSE Sensex is currently trading at 35605.78, up by 13.28 points or 0.04% after trading in a range of 35526.79 and 35850.41. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.06%, while Small cap index was up by 0.60%.

The top gaining sectoral indices on the BSE were Metal up by 1.51%, Bankex up by 1.36%, Capital Goods up by 1.35%, Basic Materials up by 0.89% and Industrials up by 0.70%, while Realty down by 1.38%, Telecom down by 1.25%, FMCG down by 1.07%, Oil & Gas down by 0.82% and Energy down by 0.73% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 5.00%, Tata Steel up by 4.87%, Axis Bank up by 4.71%, Bajaj Finance up by 4.07% and HCL Tech. up by 2.75%. On the flip side, Bajaj Auto down by 2.53%, HDFC down by 2.14%, Kotak Mahindra Bank down by 1.89%, Yes Bank down by 1.63% and ITC down by 1.27% were the top losers.

Meanwhile, with an aim to boost domestic assembling of electric vehicles in the country, the government has slashed customs duty on import of parts and components for electric vehicles (EVs). The customs duty has been lowered to 10-15 per cent from 15-30 per cent.

The Central Board of Indirect Taxes and Customs (CBIC) has carved out a separate category for parts and components of electric vehicle for which customs duty has been lowered to 10-15 per cent. However, the customs duty exemption available on battery packs for electric vehicles has been removed by the CBIC. The industry body also doubled the duty on battery packs for mobile phones.

Henceforth, import of battery packs for electric vehicles will attract 5 per cent tax. Customs duty on battery packs for mobile phone has been doubled to 20 per cent. The new rates of duties will come into effect from today (January 30, 2019).

The CNX Nifty is currently trading at 10643.15, down by 9.05 points or 0.08% after trading in a range of 10622.40 and 10710.20. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 5.03%, Tata Steel up by 4.95%, Axis Bank up by 4.70%, Bajaj Finance up by 4.00% and HCL Tech. up by 2.80%. On the flip side, Indiabulls Housing Finance down by 5.43%, Adani Ports & SEZ down by 3.45%, HPCL down by 2.85%, Bharti Infratel down by 2.56% and HDFC down by 2.38% were the top losers.

European markets were trading mostly in green; France’s CAC added 29.83 points or 0.61% to 4,958.01 and UK’s FTSE 100 was up by 54.81 points or 0.80% to 6,888.74, while Germany’s DAX was down by 9.95 points or 0.09% to 11,208.88.