Benchmarks continue to trade in green in early noon session

Indian stock markets continued to trade in positive terrain in the early noon session due to buying in Realty, IT, and TECK stocks. Buying in frontline stocks such as HCL Techonologies, HDFC Bank, and Indusind Bank were aiding sentiment, while selling in Vedanta, ONGC and NTPC kept the gains in the markets in check. The strength in the markets was being supported by the Reserve Bank of India’s (RBI) statement that it would infuse Rs 12,500 crore into the system through open market operations (OMOs) on March 14. Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of the government securities under OMOs. Meanwhile, The Goods and Services Tax Network (GSTN) has come up with a facility for businesses registered under GST to view and download a report on tax liability as declared in their form GSTR- 1 (final sales return) and as declared and paid in their return filed in form GSTR-3B (summary sales return). However, gain remained limited with former Reserve Bank of India chief Raghuram Rajan statement that the rising political pressures on central banks around the world undermines effective monetary management by risking kneejerk policies rather than pre-emptive decision making.

On the global front, Asian markets were trading mostly in red, as the rejection by the UK Parliament of the latest Brexit deal brought all the uncertainties around that vexed issue back to the foreground in the region. Back on street, in scrip specific development, Ramco Systems edged up as it has been chosen by Opteon Solutions, an international provider of property valuation and advisory services based in Australia and New Zealand, to digitise the company’s payroll operations.

The BSE Sensex is currently trading at 37633.45, up by 97.79 points or 0.26% after trading in a range of 37478.87 and 37703.49. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fall 0.14%, while Small cap index was down by 0.20%.

The top gaining sectoral indices on the BSE were Realty up by 1.12%, IT up by 0.50%, Bankex up by 0.32%, TECK up by 0.20% and FMCG was up by 0.13%, while Metal down by 1.90%, Telecom down by 1.22%, Oil & Gas down by 0.97%, PSU down by 0.96% and Power was down by 0.90% were the losing indices on BSE.

The top gainers on the Sensex were HCL Techonologies up by 1.97%, HDFC Bank up by 1.94%, Indusind Bank up by 1.88%, Bajaj Finance up by 1.31% and Bajaj Auto was up by 1.09%. On the flip side, Vedanta down by 2.95%, ONGC down by 2.07%, NTPC down by 2.05%, Tata Steel down by 1.80% and Tata Motors - DVR was down by 1.72% were the top losers.

Meanwhile, halting four-month easing trend, India’s retail inflation based on Consumer Price Index (CPI) surged to 2.57% in the month of February 2019 higher from 1.97% posted in January 2019, but lower compared to 4.44% in the same month of previous year. The earlier lowest inflation was 2.33% in November 2018. Besides, the inflation, which measures changes in shop-end prices, remained comfortably within Reserve Bank of India’s (RBI's) target level of 4%. On the other hand, the Consumer Food Price Index (CFPI) inflation came in at deflation narrowed to (-) 0.66% in February 2019, compared to (-) 2.24% from previous month, while food inflation was at 3.26% in February 2018.

As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the CPI (Rural, Urban, Combined) on Base2012=100 for February 2019, stood at 1.81%, 3.43% and 2.57% respectively, compared to 4.45%, 4.52% and 4.44%, respectively in February 2018. The index value of CPI for combined stood at 139.9. The data also showed that CFPI for all India Rural and Urban for February 2019 stood at (-) 1.75% and 1.27%, respectively, compared to 3.70% and 2.45%, respectively in February 2018. The index value of CFPI for combined stood at 135.2 for the month of February.

Among the CPI components, inflation of food and beverages increased to (-) 0.07% in February 2019 from (-) 1.29% in January 2019. Within the food items, the inflation moved up for vegetables to (-) 7.69%, cereals and products 1.32%, pulses and products (-) 3.82%, meat and fish 5.92% and oils and fats 1.41%. Further, the inflation also moved up for sugar and confectionery (-) 6.92%, egg 0.86%, milk and products 0.92%, spices 1.82% and prepared meals, snacks, sweets etc 3.54%. However, the inflation declined for non-alcoholic beverages to 3.89% in February 2019.

The inflation for housing eased to 5.10%, while that for miscellaneous items was flat at 6.02% in February 2019. Within the miscellaneous items, the inflation for personal care and effects rose to 5.01%, education 8.13% and recreation and amusement 5.54%, while it eased for health to 8.82%, household goods and services 6.29% and transport and communication 3.08% in February 2019. The inflation for clothing and footwear declined to 2.73%, while the CPI inflation of fuel and light dipped to 1.24% in February 2019.

The CNX Nifty is currently trading at 11311.95, up by 10.75 points or 0.10% after trading in a range of 11276.60 and 11342.10. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 2.07%, Indusind Bank up by 1.97%, HCL Technologies up by 1.94%, Bajaj Finance up by 1.37% and Adani Ports &Special up by 1.33%. On the flip side, Indian Oil Corporation down by 3.57%, Vedanta down by 3.17%, JSW Steel down by 2.78%, Zee Entertainment down by 2.50% and Indiabulls Housing was down by 2.43% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 103.50 points or 0.36% to 28,817.37, Nikkei 225 slipped 216.20 points or 1.01% to 21,287.49, KOSPI fell 7.09 points or 0.33% to 2,150.09 and Straits Times was down by 23.69 points or 0.74% to 3,188.56.

On the other hand, Taiwan Weighted strengthened 26.61 points or 0.26% to 10,369.94, Shanghai Composite gained 2.70 points or 0.09% to 3,063.01 and Jakarta Composite was up by 3.97 points or 0.06% to 6,357.74.