Local equities extend gains in morning deals

Local equity benchmarks, enticing some more traction, extended their gains on the streets, with Sensex and Nifty gaining over 250 and 50 points, respectively. Among heavy-weights Reliance Industries, Infosys and Hindustan Unilever exhibited a smart performance. Likewise, Energy, IT and Oil & Gas have also elevated with gains on their respective front line stocks. Buying further crept in with Reserve Bank of India’s report that foreign borrowing of Indian companies nearly trebled from the year-ago period to $3.81 billion in December 2018. Of the total fundraising during last month, $3.77 billion was mobilised through external commercial borrowings (ECBs) in the foreign markets, while $37.04 million was through rupee-denominated bonds (RDBs). Traders also remain energized with SBI Research report which showed that the government meeting the fiscal targets this year and the same is likely to pegged at Rs 6.72 lakh crore or 3.2% of GDP next fiscal year, assuming a moderate nominal GDP growth of 11.7%. Traders ignored a report that the government may again defer the deadline to impose retaliatory customs duties on 29 US products, including almond, walnut and pulses, by another 30 days till March 2.

On the global front, Asian markets were trading in green, following the overnight gains on Wall Street after the US Federal Reserve left interest rates unchanged as expected and also said it will be patient regarding further rate hikes. Back home, on the sectoral front, agricultural industry stocks were trading mostly in green, as agricultural ministry stated that India's horticulture production is estimated to rise by 1 per cent to record 314.67 million tonnes in 2018-19 on higher area.

The BSE Sensex is currently trading at 35847.20, up by 255.95 points or 0.72% after trading in a range of 35740.07 and 35849.80. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.26%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Energy up by 1.25%, IT up by 1.23%, TECK up by 0.96%, Oil & Gas up by 0.94% and Bankex was up by 0.70%, while Auto down by 0.20%, Consumer Disc down by 0.06% and Consumer Durables was down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.97%, Reliance Industries up by 1.61%, Axis Bank up by 1.56%, Hindustan Unilever up by 1.42% and SBI was up by 1.39%. On the flip side, Yes Bank down by 2.51%, Bajaj Finance down by 1.90%, Hero MotoCorp down by 0.94%, Maruti Suzuki down by 0.68% and Sun Pharma was down by 0.42% were the top losers.

Meanwhile, Commerce Minister Suresh Prabhu has said the government will release the new e-commerce policy soon which is awaiting approval from the Department of Industrial Policy and Promotion (DIPP).  The new e-commerce policy, initially drafted by industry stakeholders, is currently waiting for clearance from the DIPP. Although, the minister said ‘the government is willing to listen to the World Trade Organization (WTO), the policy will be prepared by us.’

Prabhu said the new industrial policy is also awaiting the Cabinet approval. Objective of new industrial policy is to boost manufacturing, promote foreign technology transfer and attract overseas investments. He stated that new industrial policy will replace the 27-year-old existing policy, aims to resolve bottlenecks arising from inadequate infrastructure, restrictive labour laws and complicated business environment.

He also mentioned that the government is creating 'sub-national'- ease of doing business parameters which will be measured at the district level because that is where the local industries are flourishing. Moreover He added countries like Russia, Japan, Korea, and Sweden have expressed interest in investing in projects like the Delhi-Mumbai Industrial Corridor and smart cities besides the railways, and public transport.

The CNX Nifty is currently trading at 10721.50, up by 69.70 points or 0.65% after trading in a range of 10678.55 and 10721.70. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.61%, HPCL up by 2.51%, Tech Mahindra up by 2.29%, Infosys up by 1.89% and Reliance Industries was up by 1.82%. On the flip side, Zee Entertainment down by 5.71%, Indiabulls Housing Finance down by 2.98%, Yes Bank down by 2.86%, Bajaj Finserv down by 2.36% and Bajaj Finance was down by 1.98% were the top losers.

All Asian markets were trading in green, Hang Seng increased 291.77 points or 1.06% to 27,934.62, KOSPI rose 8.47 points or 0.38% to 2,214.67, Jakarta Composite soared 57.91 points or 0.9% to 6,522.10, Shanghai Composite gained 16.26 points or 0.63% to 2,591.84, Straits Times advanced 12.04 points or 0.38% to 3,186.42 and Nikkei 225 was up by 203.59 points or 0.99% to 20,760.13.