Bourses hold gains in late afternoon session

Key equity benchmarks were holding their gains in late afternoon session, tracking firm European markets. Trading sentiments remained encouraged, after S&P Global Ratings said that falling inflation and declining global crude oil prices have created space for the Reserve Bank of India (RBI) to cut interest rates. The RBI is scheduled to announce its sixth bi-monthly policy review for the fiscal on February 7. The market participants were seen taking note of report that government sought Parliament's nod for gross additional expenditure of Rs 1,98,831.36 crore during the current fiscal ending March. Some relief came with the think tank vice chairman Rajiv Kumar’s statement that the Niti Aayog is open to the idea of having a role in fund allocation to states for developmental expenditure and would discuss the matter with the 15th Finance Commission.

On the global front, European markets were trading in green, as Eurozone industrial producer prices decreased for a second straight month in January and at the fastest pace in three years. The preliminary figures from Eurostat showed that producer prices decreased 0.8 percent from November, when they fell 0.3 percent. The latest decline was the biggest since January 2016, when prices fell 1.1 percent. Besides, Italy's consumer price inflation eased in January to its lowest level in nine months. The preliminary figures from the statistical office Istat showed that the consumer price index climbed 0.9 percent year-over-year in January, slower than December's 1.1 percent increase. The inflation rate was the lowest since April, when it was 0.5 percent. Among the Asian markets, Nikkei index was trading in red, as trading volumes remained thin amid Lunar New Year holidays in China, Taiwan, South Korea, Singapore and Indonesia.

The BSE Sensex is currently trading at 36668.05, up by 85.31 points or 0.23% after trading in a range of 36495.83 and 36727.83. There were 17 stocks advancing against 13 stocks declining, while 1 remain unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.56%, while Small cap index was down by 0.88%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.40%, Auto up by 0.81%, Bankex up by 0.46%, Consumer Disc up by 0.41% and Energy up by 0.17%, while Realty down by 1.44%, Telecom down by 1.44%, Metal down by 1.05%, Power down by 0.97% and Industrials down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.75%, Bajaj Auto up by 2.26%, Hero MotoCorp up by 2.25%, Mahindra & Mahindra up by 1.59% and Maruti Suzuki up by 1.48%. On the flip side, Tata Motors down by 2.72%, Tata Motors - DVR down by 2.64%, Coal India down by 2.39%, Tata Steel down by 2.11% and ONGC down by 1.88% were the top losers.

Meanwhile, India’s services sector activity cooled for the second straight month in January amid the weakest upturn in new work since last September. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index slipped to 52.2 in January from 53.2 in December. However, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services – remained unchanged at 53.6 in January.

The report found that the slowdown was centred on the domestic market as new orders from abroad grew to the greatest extent since last September, following back-to-back declines at the end of 2018. The sales increased moderately and stood the weakest in four months. Further, the rise in backlogs quickened from December but it was modest. Likewise, unfinished work increased in the goods-producing economy. As per report, employment at services continued to expand, with job creation at a three-month high. The growth in job creation was underpinned by ongoing increases in new business and favourable market conditions.

On the price front, a softer increase in prices charged for the provision of services was evident in January, with 97% of firms leaving their fees unchanged during the reported month. There was a renewed upturn in factory gate charges at the start of the year, but the rise was negligible in the context of historical data.

The CNX Nifty is currently trading at 10945.15, up by 32.90 points or 0.30% after trading in a range of 10886.70 and 10956.70. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Titan up by 3.83%, Dr. Reddy’s Lab up by 3.21%, UPL up by 3.00%, Zee Entertainment up by 2.95% and Indusind Bank up by 2.79%. On the flip side, Tata Motors down by 2.52%, Coal India down by 2.21%, Tata Steel down by 1.94%, Bharti Infratel down by 1.71% and ITC down by 1.39% were the top losers.

Most of the Asian markets were closed on account of Lunar New Year holiday. Nikkei 225 was down by 39.32 points or 0.19% to 20,844.45.

All European markets were trading in green; France’s CAC gained 38.75 points or 0.77% to 5038.94, Germany’s DAX added 103.48 points or 0.93% to 11,280.06 and UK’s FTSE 100 was up by 72.40 points or 1.03% to 7,106.53.