Sensex, Nifty continue to trade in positive terrain

Stock markets were trading in positive terrain in early noon session on the back of buying in Telecom, Healthcare and Auto sectors.  Amongst individual stocks, Sun Pharma, Bajaj Auto and Tata Motors were witnessing maximum buying by investors. Market participants remained bullish after tracking sustained inflow from domestic and foreign funds, amid hopes that the RBI may change its policy stance to neutral from calibrated tightening on low inflation footprint. Besides, broader indices were also trading in green, supporting their larger peers. Sentiment got boost as the Cabinet Committee on Economic Affairs (CCEA) has approved a proposal to implement the Central Public Sector Undertaking (CPSU) Scheme Phase-II for setting up 12,000 MW grid-connected solar photovoltaic (PV) power projects with Viability Gap Funding (VGF) support of Rs 8,580 crore for self-use or use by both central and state government entities. Meanwhile, the Union Cabinet has approved proposals to amend the Banning of Unregulated Deposit Schemes Bill, 2018. This will further strengthen the bill in its objective to effectively tackle the menace of illicit deposit-taking activities, and prevent such schemes from duping the poor.

On the global front, Asian counters are showcasing mixed trend as regional investors began to return from their Lunar New Year break. Most trading floors have reopened but business remains light, with Hong Kong and Shanghai still closed, while focus turns on the resumption next week of China-US trade talks in Beijing. Back on streets, in scrip specific development, Indraprastha Gas gained on reporting a rise of 19.33% in its net profit at Rs 197.99 crore for the quarter ended December 31, 2018 as compared to Rs 165.92 crore for the same quarter in the previous year. Besides, Yes Bank surged on signing MoU with MG Motor India to offer financing and banking solutions to both the MG Motor dealers as well as the end consumers.

The BSE Sensex is currently trading at 37092.24, up by 117.01 points or 0.32% after trading in a range of 36966.00 and 37145.82. There were 24 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.94%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were Telecom up by 2.24%, Healthcare up by 1.56%, Auto up by 1.44%, Basic Materials up by 0.95%, Consumer Disc up by 0.88%, while Energy down by 0.26% and Utilities was down by 0.19% were the only losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 6.16%, Bajaj Auto up by 2.78%, Tata Motors up by 2.19%, Tata Motors - DVR up by 2.17% and Yes Bank was up by 2.16%. On the flip side, Indusind Bank down by 0.89%, Reliance Industries down by 0.60%, HDFC down by 0.49%, Asian Paints down by 0.25% and Power Grid Corporation was down by 0.19% were the top losers.

Meanwhile, the directorate general of foreign trade (DGFT) has said that the government has permitted export of bio-fuels from special economic zones (SEZs) and export-oriented units (EoUs) with certain conditions. In August 2018, the government placed restrictions on biofuel exports for non-fuel purposes. After this restriction, exporters operating from SEZs and EoUs made representations to remove this prohibition stating they only use imported material for export of final product. They also informed government authorities that SEZ units have been granted letter of approval for export of bio-fuels and EoU units have obligations to fulfil under an export promotion scheme.

The DGFT notice has stated that considering the hardship faced by the trade community and the fact that production of bio-fuels in EoU/SEZ would be from imported feedstock, therefore, it would not impact the domestic production/consumption. Hence, it said that the restriction as applicable to DTA (domestic tariff area) may not be extended to EoU/SEZ. It also noted that SEZs and EoUs are export-oriented units outside the ambit of domestic customs laws. It further said that members of trade and industry are informed that export of bio-fuels for non-fuel purposes from EoU/SEZ will be regulated under certain rules of SEZs and foreign trade policy. It added that the feedstock for production of bio-fuel for export from these areas should be from imported sources only.

Biofuels include ethyl alcohol and other spirits, petroleum oil and oils obtained from bituminous minerals, biodiesel and mixtures.  Before August 2018, the export of these items was allowed without any restrictions. India exported ethyl alcohol worth $276.35 million in 2017-18 as against $224 million in the previous fiscal. Similarly, export of petroleum oil and oils obtained from bituminous minerals increased to $8 million in 2017-18 from $0.54 million in the previous fiscal.

The CNX Nifty is currently trading at 11095.65, up by 33.20 points or 0.30% after trading in a range of 11055.95 and 11101.85. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 6.82%, Bajaj Auto up by 2.84%, Indiabulls Housing up by 2.66%, Zee Entertainment up by 2.58% and Bharti Infratel was up by 2.46%. On the flip side, JSW Steel down by 1.66%, Tech Mahindra down by 1.28%, Indusind Bank down by 0.93%, Adani Ports &Special down by 0.91% and GAIL India was down by 0.81% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 126.52 points or 0.61% to 20,747.54, Jakarta Composite dropped 14.56 points or 0.22% to 6,533.32. On the other hand, KOSPI surged 4.18 points or 0.19% to 2,207.64 and Straits Times was up by 24.30 points or 0.76% to 3,208.86.