Sensex, Nifty settle in positive territory

Indian bourses managed to end Thursday’s trading session in positive territory, with Sensex and Nifty reclaiming their crucial psychological level of 36,700 and 11,050, respectively. Markets made a positive start, amid reports that the income tax (I-T) department notified the modified norms for startups to enable them to seek 'angel tax' exemption for investments of up to Rs 25 crore, with an aim to encourage budding entrepreneurs. The modified norms will be effective retrospectively from February 19, 2019, when the Department for Promotion of Industry and Internal Trade (DPIIT) relaxed the norms for startups. Trade remained positive for the most part of the session, aided by CARE Ratings’ latest report showing that debt quality of Indian companies improved during January-August 2018. CARE Ratings’ Debt Quality Index (CDQI) remained positive in the reported period.

However, some volatility witnessed during noon deals, as the Process Plant and Machinery Association of India (PPMAI) expressed concern on surge in metal and capital goods imports from countries such as Korea, Indonesia, Malaysia and Japan with whom India has pacts to promote free trade. It said that the Free Trade Agreements (FTAs) along with lack of reciprocity is adversely hurting the steel manufacturers as well as the capital goods industry. Traders got cautious with a private report stating that the likelihood of Indian GDP growth coming at below 7 percent in 2019-20 is very high despite aiding factors like low oil prices and an expansionary budget. The report also noted that global slowdown, tight financial conditions and political uncertainty in the election year will be the biggest headwinds for growth.

On the global front, European markets were trading in red, even though Germany's construction activity expanded for the fourth successive month in February as new orders and employment rose. The survey results from IHS Markit showed that the headline construction Purchasing Managers' Index rose to 54.7 in February from 50.7 in January. The latest reading was the quickest since January 2018. Asian markets ended mostly in red, after the Organization for Economic Cooperation and Development downgraded its growth forecast for Group of 20 nations, saying that trade disputes and economic uncertainty over Brexit would hit world commerce and businesses.

Back home, sugars stocks ended lower, despite Cabinet Committee on Economic Affairs approved Rs 2,790 crore interest subvention for extending loans by banks to sugar mills. This is in addition to Rs 1,332 crore already approved by the Cabinet Committee on Economic Affairs in June 2018. Further, energy sector stocks remained in focus with Crisil Research’s report that the country's wind energy sector is likely to see a slow growth with regard to capacity addition over the next five years. It added that the shift to a competitive bidding mechanism has slowed industry growth due to a significant fall in tariffs, triggering a decline in both bid response and profitability for original equipment manufacturers (OEMs).

Finally, the BSE Sensex surged 89.32 points or 0.24% to 36,725.42, while the CNX Nifty was up by 5.20 points or 0.05% to 11,058.20.

The BSE Sensex touched a high and a low of 36,830.25 and 36,590.88, respectively and there were 14 stocks advancing against 17 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.34%, while Small cap index was down by 0.11%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.51%, Industrials up by 0.80%, FMCG up by 0.48%, Bankex up by 0.40% and Telecom up by 0.31%, while Healthcare down by 0.94%, Metal down by 0.74%, IT down by 0.70%, TECK down by 0.68% and Oil & Gas down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.76%, Axis Bank up by 1.77%, Mahindra & Mahindra up by 1.71%, ITC up by 1.61% and SBI up by 1.26%. On the flip side, Coal India down by 3.09%, Sun Pharma down by 1.97%, NTPC down by 1.68%, ONGC down by 1.58% and Yes Bank down by 1.47% were the top losers.

Meanwhile, Agriculture Minister Radha Mohan Singh has said that the government has given the first instalment of Rs 2,000 each to over 2 crore farmers so far under the ambitious Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme. He noted that many states are seriously showing interest to implement the scheme and sending the data.

The minister further stated that some states such as West Bengal are not keen to roll out the scheme and therefore not providing the data. He said ‘to such states, I only urge to keep the politics aside else the electorate will teach them a lesson.’ Besides, he said that the government has shifted the farm policy approach from production-centric to income-centric. He added that farmers have begun to understand and are going in a big way toward income-oriented farming.

The PM-KISAN was announced in the interim Budget 2019-20 on February 1, 2019. Under the Scheme, Rs 6,000 will be given per year to small and marginal farmer families having combined land holding/ownership of up to 2 hectares. On February 24, Prime Minister Narendra Modi  officially launched Rs 75,000-crore PM-KISAN scheme in  Gorakhpur, Uttar Pradesh, by transferring the first instalment of Rs 2,000 each to over one crore farmers. 

The CNX Nifty traded in a range of 11,089.05 and 11,027.10. There were 17 stocks advancing against 32 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Larsen & Toubro up by 2.51%, Mahindra & Mahindra up by 1.96%, Axis Bank up by 1.89%, SBI up by 1.38% and Power Grid up by 1.33%. On the flip side, Indian Oil Corporation down by 3.45%, Coal India down by 3.42%, Zee Entertainment down by 3.16%, Wipro down by 3.05% and NTPC down by 2.25% were the top losers.

European markets were trading in red; UK’s FTSE 100 fell 36.56 points or 0.51% to 7,159.44, France’s CAC dropped 19.73 points or 0.37% to 5,269.08 and Germany’s DAX was down by 61.10 points or 0.53% to 11,526.53.

Asian markets ended mostly lower on Thursday as the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecasts again and the US trade deficit surged to a 10-year high in 2018, despite more than two years of President Trump's ‘America First’ policies. US private sector job growth also moderated in February, keeping investors cautious ahead of the European Central Bank (ECB) meeting later in the day and the monthly US jobs report due on Friday. Chinese shares ended higher as Huawei Technologies filed a lawsuit against the US government for banning its equipment from certain networks in the US. Further, Japanese shares hit one-week low, dragged down by banks and chipmakers. Meanwhile, the Indonesia market is closed for a public holiday.