Bourses trade slightly higher

Key equity indices were trading slightly higher in late afternoon session, on the account of firm European markets. Investors got comfort, with reports that the Cabinet is expected to soon consider a proposal of FDI-linked relaxation for mandatory 30 per cent local sourcing norms for foreign single brand retailers by allowing them more time to comply with regulations. The commerce and industry ministry has already circulated a draft cabinet note seeking views of different ministries including the department of economic affairs on the proposal. Gains were limited, as the Comptroller and Auditor General (CAG) pointed out irregularities in the way part of goods and services tax (GST) revenue was transferred to states in 2017-18. It said the devolution of Integrated GST (IGST), which is collected on the inter-state supply of goods and services and imports, to states did not happen according to provisions of the law. Traders were also seen taking note of the Minister of State for Micro, Small and Medium Enterprises (MSMEs) Giriraj Singh’s statement that there is need for financial inclusion of small entrepreneurs, underlying that without whom the country cannot develop. On the sectoral front, stocks of real estate companies were in focused, as the Comptroller and Auditor General (CAG) report showed that the Registrar of Companies did not have information about PAN of 95 per cent of the real estate companies.

On the global front, European markets were trading in green, as Portugal's inflation eased further in January to its lowest level in nine months. The preliminary data from Statistics Portugal showed that the consumer price inflation slowed to 0.5 percent in January from 0.7 percent in December. However, core inflation, which excludes energy and unprocessed food products, rose slightly to 0.8 percent from 0.6 percent in December. Asian markets were also trading in green, after US President Donald Trump indicated he could extend a March 1 deadline for raising tariffs on China, if the two sides are near an agreement. US tariffs on $200 billion of Chinese imports are scheduled to increase from 10 to 25 percent if a deal is not struck before then.

The BSE Sensex is currently trading at 36202.41, up by 48.79 points or 0.13% after trading in a range of 36133.00 and 36375.80. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.09%, while Small cap index was up by 0.07%.

The top gaining sectoral indices on the BSE were Realty up by 0.83%, IT up by 0.60%, TECK up by 0.41%, Basic Materials up by 0.29% and Metal up by 0.04%, while PSU down by 0.87%, Consumer Durables down by 0.80%, Oil & Gas down by 0.75%, Telecom down by 0.73% and Capital Goods down by 0.72% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.44%, HDFC up by 1.51%, Tata Motors - DVR up by 1.50%, Sun Pharma up by 1.16% and Infosys up by 0.93%. On the flip side, Hero MotoCorp down by 1.86%, NTPC down by 1.62%, Maruti Suzuki down by 1.39%, SBI down by 1.36% and Bajaj Finance down by 1.34% were the top losers.

Meanwhile, in order to mitigate financial challenges faced by entrepreneurs, the Minister of State for Micro, Small and Medium Enterprises (MSMEs) Giriraj Singh has said there is need for financial inclusion of small entrepreneurs, underlying that without whom the country cannot develop.

While appreciating the banking sector concerns about the Non-Performing Assets and bad debts, he pointed out that where there is need based financing from the banks the recoveries have been more than 99 per cent. Giriraj Singh further requested the banks to set their priorities in line with the policies and financial guarantees of the Government and provide loans to youth and small entrepreneurs.

Besides, the MSME Minister said that the government is keen to bring SC/ST entrepreneurs at par with their counterparts in the industry, dedicating financial schemes exclusively for them. The minister also highlighted the 12 initiatives of the Government for the MSME sector announced by the Prime Minister on November 02, 2018, and asked MSMEs to take full advantage of the 59 Minute Loan Sanction portal. He further said that the resources are limited but the Government, during last 4 years, has done a lot for the development of MSME sector.

The CNX Nifty is currently trading at 10839.30, up by 7.90 points or 0.07% after trading in a range of 10824.95 and 10891.65. There were 21 stocks advancing against 28 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 5.37%, Indiabulls Housing Finance up by 3.51%, UPL up by 3.17%, Tata Motors up by 2.17% and HDFC up by 1.68%. On the flip side, Eicher Motors down by 3.24%, HPCL down by 3.18%, BPCL down by 2.71%, NTPC down by 2.48% and Bharti Infratel down by 2.41% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 280.27 points or 1.34% to 21,144.48, Hang Seng increased 326.26 points or 1.14% to 28,497.59, Straits Times advanced 39.46 points or 1.22% to 3,240.61, Shanghai Composite gained 51.35 points or 1.92% to 2,723.24 and KOSPI rose 11.01 points or 0.5% to 2,201.48. On the flip side, Taiwan Weighted lost 7.16 points or 0.07% to 10,090.58 and Jakarta Composite was down by 7.21 points or 0.11% to 6,419.12.

All European markets were trading in green; FTSE rose 32.44 points or 0.45% to 7,165.58, CAC jumped 20.27 points or 0.40% to 5,076.62 and DAX was up by 53.93 points or 0.48% to 11,180.01.
53.93