Markets trade at day’s high

Key Indian equity benchmarks extended their gains in late afternoon session to trade near their intraday high points, tracking positive European markets. Trading sentiments remained optimistic, as the Government is launching the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), to provide an assured income support to the small and marginal farmers. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year. Traders also took encouragement with report that the Central Board of Indirect Taxes and Customs (CBIC) constituted three Working Groups to study and recommend measures to facilitate trade, promote exports and improve compliance. The Working Groups will focus on improving the legislative structure of customs tariff and update it to suit the emerging and future needs of the economy and industry. Special focus would be given to create a comprehensive export tariff structure to enhance India’s export competitiveness.

On the sectoral front, NBFCs companies stocks were in focus, after the Reserve Bank of India (RBI) created a single category for Non-Banking Financial Companies (NBFCs) by bundling their present three-tier structure, with an aim to provide greater operational flexibility to non-banking lenders.

On the global front, European markets were trading in green, even though Germany's business confidence fell for a sixth straight month in February to its lowest level in over four years, as firms continue to worry that the economic outlook is set to turn bleak due to worsening global trade tensions and political crises such as Brexit. The results of a survey by the Munich-based Ifo Institute showed that the business confidence index dropped to 98.5 from an upwardly revised 99.3 in January. Asian markets were also trading in green.

The BSE Sensex is currently trading at 36140.95, up by 269.47 points or 0.75% after trading in a range of 35901.06 and 36162.73. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.38%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were IT up by 2.28%, TECK up by 1.90%, Basic Materials up by 1.07%, Auto up by 0.98% and Healthcare was up by 0.88%, while Oil & Gas down by 0.47%, Energy down by 0.43%, Realty down by 0.38%, PSU down by 0.35% and Telecom was down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.86%, TCS up by 2.60%, Yes Bank up by 2.55%, HCL Tech. up by 1.81% and Sun Pharma up by 1.46%. On the flip side, ONGC down by 0.57%, NTPC down by 0.54%, Reliance Industries down by 0.37%, SBI down by 0.37% and Axis Bank down by 0.28% were the top losers.

Meanwhile, with an aim to provide greater operational flexibility to non-banking lenders, the Reserve Bank of India (RBI) has created a single category for Non-Banking Financial Companies (NBFCs) by bundling their present three-tier structure.

According to the RBI, NBFCs categorized as Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies (ICs), will be merged into a new category called NBFC - Investment and Credit Companies (NBFC- ICCs).

Further, the RBI noted that a deposit taking NBFC-ICC shall invest in unquoted shares of another company which is not a subsidiary company or a company in the same group of the NBFC, an amount not exceeding twenty per cent of its owned fund.

The Apex bank also decided that exposures to all NBFCs, excluding core investment companies, will be risk weighted as per credit ratings.

The CNX Nifty is currently trading at 10860.40, up by 68.75 points or 0.64% after trading in a range of 10788.05 and 10862.50. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.94%, TCS up by 2.72%, Yes Bank up by 2.66%, Grasim Industries up by 2.46% and UPL up by 2.38%. On the flip side, Adani Ports & SEZ down by 8.86%, Bharti Infratel down by 2.87%, BPCL down by 2.37%, HPCL down by 1.49% and Zee Entertainment down by 1.35% were the top losers.

All the Asian markets are trading in green; Nikkei 225 gained 102.72 points or 0.48% to 21,528.23, Straits Times rose 1.64 points or 0.05% to 3,271.54, Hang Seng jumped 143.00 points or 0.50% to 28,959.30, Taiwan Weighted surged 68.01 points or 0.66% to 10,390.93, KOSPI advanced 2.06 points or 0.09% to 2,232.56, Jakarta Composite added 23.98 points or 0.37% to 6,525.36 and Shanghai Composite was up by 157.05 points or 5.60% to 2,961.28.

European markets are trading in green; FTSE rose 21.14 points or 0.29% to 7,199.74, CAC jumped 16.87 points or 0.32% to 5,232.72 and DAX was up by 60.93 points or 0.53% to 11,518.63.