Bourses hover near day’s high

Indian equity bourses were hovering near their intraday high points in late afternoon session, with Sensex and Nifty holding more than 350 and 100 points, respectively, despite weak cues from European markets. Domestic sentiments were boosted with reports that Commerce Ministry met Export Promotion Councils to discuss various issues being faced by exporters and examine ways by which India’s merchandise exports may reach $ 325 billion by March 2019. Adding some optimism among traders, the Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship Dharmendra Pradhan said that India has emerged as a bright spot in the global economy in the recent years. He also added that with strong economy and supportive policy environment, the Government remains committed to inclusive, holistic and sustainable high economic growth. On the sectoral front, sugar stocks were in sweet spot, after Food Minister Ram Vilas Paswan highlighted that the government has taken many long-term measures such as fixing minimum selling price to help sugar millers and allowing production of ethanol from B-heavy molasses and cane juices.

On the global front, European markets were trading red, as the IHS Markit data showed growth in Eurozone almost stalled in January. The IHI's composite final PMI dipped to 51.0 in the month from December's 51.1, its lowest reading since July 2013. A measure of Euro zone retail sales also fell as expected in December amid declines in non-food sales and online purchases. Besides, UK service sector growth also slowed more-than-expected in January, moving closer to stagnation, as new orders decreased for the first time in two-an-a-half years. Asian markets were trading in green, after Trump announced he would meet North Korean leader Kim Jong Un in Vietnam at the end of February as part of a bold new diplomacy that has already yielded tangible results. Trading activity were thin across the region as markets in China, Hong Kong, Korea, Malaysia, Singapore and Taiwan remain closed on account of holiday.

The BSE Sensex is currently trading at 36969.33, up by 352.52 points or 0.96% after trading in a range of 36680.88 and 36994.03. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.44%, while Small cap index was down by 0.21%.

The top gaining sectoral indices on the BSE were Metal up by 1.90%, Energy up by 1.71%, TECK up by 1.59%, IT up by 1.56% and Oil & Gas up by 1.46%, while Consumer Durables down by 0.54%, Power down by 0.47%, Utilities down by 0.22%, Realty down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.97%, Bajaj Finance up by 3.38%, ONGC up by 2.35%, ICICI Bank up by 2.06% and Bajaj Auto up by 2.01%. On the flip side, NTPC down by 1.09%, Indusind Bank down by 0.61%, Axis Bank down by 0.59%, Yes Bank down by 0.57% and Bharti Airtel down by 0.24% were the top losers.

Meanwhile, indicating a positive outlook for India's export, the UN Conference on Trade and Development (UNCTAD) in its latest report has said that India is among the several countries which may gain from United States and Chinese trade tensions. As per the report, US and China's tariffs will divert trade to other countries, with this India is likely to see rise of 3.5% in exports, while the European Union will be the biggest winner.

UNCTAD further said that out of the $250 billion in Chinese exports that are subject to US tariffs, only about 6% will be picked up by firms in the US and of the approximately $85 billion in US exports that are subject to China's tariffs, only about 5% of this will be taken up by Chinese firms.

Besides, the report said that the tit-for-tat trade dispute between China and the United States may do little to protect domestic producers in either country and could have massive implications on the global economy unless it is resolved. It further highlighted that unless the US and China agree to drop their tariff dispute by March 1, duty on each country's products will rise to 25%, up from the current 10% level.

The CNX Nifty is currently trading at 11052.35, up by 118.00 points or 1.08% after trading in a range of 10962.70 and 11060.00. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 7.49%, Zee Entertainment up by 5.78%, Tata Steel up by 4.33%, HPCL up by 3.86% and Bajaj Finance up by 3.55%. On the flip side, Adani Ports & SEZ down by 2.72%, Dr. Reddy’s Lab down by 1.68%, Indusind Bank down by 0.85%, NTPC down by 0.80% and Titan down by 0.74% were the top losers.

Several markets in Asia are closed for the Lunar New Year holiday. Nikkei 225 surged 29.61 points or 0.14% to 20,874.06 and Jakarta Composite was up 61.43 points or 0.95% to 6,542.88.

All European markets were trading in red; France’s CAC lost 19.25 points or 0.38% to 5064.09, Germany’s DAX fell 48.19 points or 0.42% to 11,319.79 and UK’s FTSE 100 was down by 23.65 points or 0.33% to 7,153.72.