Sensex, Nifty continue to trade in positive terrain

Stock markets were trading in positive terrain in early noon session with Sensex and Nifty trading above 36,100 and 10,850 marks, respectively. Capital Goods, Industrials and Basic Materials stocks were on a buying spree. Besides, broader indices were also trading in green, supporting their larger peers. Traders were getting some encouragement with a private report that the government is likely to transfer Rs 2,000 each to at least 10 million more farmers, carrying forward the PM-KISAN scheme that Prime Minister Narendra Modi has launched. The government has so far registered 37.1 million farmers from across the country. Some support also came in with report that the consumer market is expected to grow at 12 percent annually over the next decade and touch Rs 335 lakh crore. The consumer market was around Rs 110 lakh crore in 2018, clipping past 13 percent annually in the past decade when it stood at Rs 31 lakh crore in 2008. However, upside remain capped  after government data showing that fiscal deficit touched 121.5 percent of the full-year revised target of Rs 6.34 lakh crore at the end of January on account of lower revenue collections. At the end of January 2018, the deficit was 113.7 percent of the Revised Estimate (RE). Meanwhile, the government has extended the deadline to impose retaliatory customs duties on 29 US products, including almond, walnut and pulses, till April 1. As discussions are going on between India and the US for a proposed trade package, the commerce ministry had asked its finance counterpart to again defer the implementation of a notification to impose high duties on US products.

On the global front, Asian markets were trading mostly in red, after Federal Reserve Chairman Jerome Powell reinforced the US central bank’s recent shift towards a more ‘patient’ approach on policy in the face of a slowing economy. Back on street, on the scrip specific development, banking stocks are trading higher with the RBI stating that Allahabad Bank, Corporation Bank and Dhanlaxmi Bank have been taken out of the Prompt Corrective Action (PCA) framework. The Board for Financial Supervision (BFS) noted that Allahabad Bank and Corporation Bank had received Rs 6896 crore and Rs 9086 crore respectively. This has shored up their capital funds and also increased their loan loss provision to ensure that the PCA parameters were complied with.

The BSE Sensex is currently trading at 36145.80, up by 172.09 points or 0.48% after trading in a range of 36129.66 and 36371.11. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.91%, while Small cap index was up by 1.13%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.65%, Industrials up by 1.20%, Basic Materials up by 1.10%, Power up by 0.90%, Realty up by 0.85%, while IT down by 0.38% and TECK was down by 0.30% were the few losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.04%, Bharti Airtel up by 1.97%, Sun Pharma up by 1.94%, Bajaj Auto up by 1.88% and Axis Bank was up by 1.69%. On the flip side, Tata Motors down by 1.20%, Vedanta down by 1.12%, Tata Motors - DVR down by 0.94%, Kotak Mahindra Bank down by 0.75% and Infosys was down by 0.50% were the top losers.

Meanwhile, Corporate Affairs Secretary Injeti Srinivas has said that the government would soon take effective steps to discourage people from making frivolous bids under the Insolvency and Bankruptcy Code (IBC). He noted that the IBC mainly seeks to address the issue of stressed assets in a time-bound manner. However, he said that there have been instances where entities have failed to implement the approved resolution plans.

Srinivas said “in some cases after one year or more after settlement has taken place, the resolution applicant has failed to implement the plan. What do we do with such resolution applicants? So much of time and resources (are) used in bringing in a settlement and the insolvency costs (are) huge.” In such cases, he wondered whether the resolution applicant has to bear the entire resolution cost or should there be some criminal proceedings or should they be banned from becoming resolution applicants again.

While noting that the Code has brought in tectonic shift in the relationship between creditors and debtors, Corporate Affairs Secretary said it has also been subject to lot of litigations. He also felt that IBC will play a significant role in India becoming $10 trillion economy. He added that a time would come when the Code becomes the last resort to deal with stressed assets.

The CNX Nifty is currently trading at 10859.60, up by 24.30 points or 0.22% after trading in a range of 10838.40 and 10939.70. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.06%, Ultratech Cement up by 1.91%, Sun Pharma up by 1.74%, Bajaj Auto up by 1.70% and Larsen & Toubro was up by 1.66%. On the flip side, Wipro down by 2.68%, Bharti Infratel down by 1.98%, BPCL down by 1.47%, Vedanta down by 1.18% and Indian Oil Corporation was down by 1.16% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 163.66 points or 0.57% to 28,935.72, Nikkei 225 surged 127.22 points or 0.59% to 21,576.61, Straits Times advanced 12.10 points or 0.37% to 3,273.76, KOSPI rose 9.08 points or 0.41% to 2,235.68 and Shanghai Composite was up by 26.99 points or 0.92% to 2,968.51.

On the flip side, Jakarta Composite dropped 12.53 points or 0.19% to 6,528.42 and Taiwan Weighted was down by 2.38 points or 0.02% to 10,389.17.