Bourses gain traction; Sensex garners around 150 points

Key Indian equity benchmarks gained traction in late afternoon session, with Sensex garnering around 150 points despite sluggish opening in European markets. Trading sentiment got boost with credit rating agency, 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. Investors were also in cheerful mood, as 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. On the sectoral front, sugars stocks were trading higher, as the 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.

On the global front, European markets were trading 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 were also trading 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.

The BSE Sensex is currently trading at 36783.30, up by 147.20 points or 0.40% after trading in a range of 36590.88 and 36803.71. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.04%, while Small cap index was up by 0.21%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.74%, Industrials up by 1.08%, Telecom up by 0.76%, FMCG up by 0.70% and Bankex up by 0.55%, while IT down by 0.47%, Healthcare down by 0.41%, TECK down by 0.40%, Metal down by 0.27% and Realty down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.77%, Axis Bank up by 2.41%, Mahindra & Mahindra up by 2.23%, ITC up by 1.70% and Power Grid up by 1.54%. On the flip side, Coal India down by 1.90%, ONGC down by 1.26%, Vedanta down by 1.20%, Sun Pharma down by 1.08% and NTPC down by 1.01% were the top losers.

Meanwhile, credit rating agency, CARE Ratings in its latest report has showed that debt quality of Indian companies improved during January-August 2018. CARE Ratings Debt Quality Index (CDQI) remained positive in the reported period.

As per the report, CDQI fell marginally in the month of September 2018 and October 2018 and remained more or less stable in the months of November 2018-February 2019. The index was at 90.84 points in February this year compared with 89.23 points in the corresponding month last year. The volume of debt of the sample companies stands at Rs 35.07 lakh crore in February 2019.

Meanwhile, CARE Ratings Debt Quality Index (CDQI) denotes the quality of debt that can be interpreted over time and juxtaposed with other developments in the financial sector. The CDQI captures, on a scale of 100 (index value for the base year FY12), whether the quality of debt is improving or declining.

The CNX Nifty is currently trading at 11080.30, up by 27.30 points or 0.25% after trading in a range of 11027.10 and 11086.40. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 2.70%, Axis Bank up by 2.50%, Mahindra & Mahindra up by 2.37%, HPCL up by 2.15% and Power Grid up by 1.63%. On the flip side, Coal India down by 2.14%, Wipro down by 2.05%, Indian Oil Corporation down by 1.94%, Indiabulls Housing Finance down by 1.75% and Tech Mahindra down by 1.57% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 258.15 points or 0.89% to 28,779.45, Nikkei 225 slipped 140.80 points or 0.65% to 21,456.01, Taiwan Weighted dropped 45.47 points or 0.44% to 10,311.68 and KOSPI fell 9.81 points or 0.45% to 2,165.79. On the flip side, Straits Times rose 0.86 points or 0.03% to 3,223.70 and Shanghai Composite was up by 4.32 points or 0.14% to 3,106.42.

All European markets were trading in red; Germany’s DAX lost 46.81 points or 0.40% to 11,540.82, France’s CAC declined by 19.32 points or 0.37% to 5,269.49 and UK’s FTSE 100 was down by 33.55 points or 0.47% to 7,162.45.