Markets trade in green in early noon session

Indian stock markets were trading in positive terrain in the early noon session due to buying in Realty, Power, Telecom and Utilities stocks. Buying in frontline stocks such as Bharti Airtel, Tata Motors, and Power Grid Corporation were aiding sentiment, while selling in Bajaj Auto, Bajaj Auto and ICICI Bank kept the gains in the markets in check. Sentiments got boost as Ratings agency Crisil in its half-yearly report on credit movements has said that system wide non-performing asset (NPA) ratios will improve by 180 basis points (bps) to 8.5 percent in March 2020 from FY19 levels on the back of moderation in slippages coupled with recoveries from the bankruptcy resolutions. It also noted that public sector banks (PSBs) will turn more profitable for first time in four years. Traders remained optimistic as GST collection in March 2018-19 has been the highest ever since the introduction of the indirect tax regime with the government recording a 15.6 percent growth in revenue over 2017-18.

On the global front, Asian markets were trading mostly in green, as factory activity surveys from China and the United States boosted investor confidence, triggering the largest one-day sell-off in the US Treasury market in nearly three months. Back home, Breweries & Distilleries stocks declined as The Food Safety and Standards (Alcoholic Beverages) 2018 mandated the makers to carry Consumption of alcohol is injurious to health and Be safe-don’t drink and drive. It has also given a time of six months to the manufacturer for use of unused labels and printed cans.

The BSE Sensex is currently trading at 38939.90, up by 68.03 points or 0.18% after trading in a range of 38846.96 and 39017.24. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.29%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Realty up by 3.05%, Power up by 1.22%, Telecom up by 1.02%, Utilities up by 0.98%, PSU up by 0.80%, while FMCG down by 0.54%, Energy down by 0.24%, Oil & Gas down by 0.20%, Consumer Durables down by 0.17%, Healthcare down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.25%, Tata Motors up by 2.40%, Power Grid Corporation up by 2.17%, Tata Motors - DVR up by 2.16% and Indusind Bank was up by 1.58%. On the flip side, Bajaj Auto down by 1.12%, HCL Technologies down by 1.04%, ICICI Bank down by 0.69%, ITC down by 0.64% and HDFC Bank was down by 0.62% were the top losers.

Meanwhile, the growth of eight core infrastructure industries slowed down to 2.1 percent in February 2019 as compared to 5.4% in February 2018, due to fall in output of crude oil and refinery products. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 125.8 in February, 2019, which was 2.1% higher compared to the index of February, 2018. Its cumulative growth during April to February, 2018-19 was 4.3%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Among eight core sectors, Coal production having 10.33% weight rose 7.3% in February, 2019 over February, 2018, and its cumulative index increased by 7.1% during April to February, 2018-19 over corresponding period of the previous year. Petroleum Refinery production having 28.04% weight decreased 0.8% in February, 2019 over February, 2018, while its cumulative index surged by 3.0% during April to February, 2018-19 over the corresponding period of previous year.

The Natural Gas production having 6.88% weight increased by 3.8% in February, 2019 over February, 2018, and its cumulative index was up by 0.8% during April to February, 2018-19 over the corresponding period of previous year. Besides, Steel production having 17.92% weight jumped by 4.9% in February, 2019 over February, 2018 and its cumulative index increased by 4.7% during April to February, 2018-19 over the corresponding period of previous year. Electricity generation having 19.85% weight decreased by 0.7% in February, 2019 over February, 2018 and its cumulative index increased by 5.4% during April to February, 2018-19 over the corresponding period of previous year.    

Cement production having 5.37% weight jumped 8.0% in February, 2019 over February, 2018 and its cumulative index increased by 13.0% during April to February, 2018-19 over the corresponding period of previous year. Fertilizer production having 2.63% weight increased by 2.5% in February, 2019 over February, 2018, while its cumulative index was down by 0.02% during April to February, 2018-19 over the corresponding period of previous year. Crude Oil production having 8.98% weight decreased by 6.1% in February, 2019 over February, 2018 and its cumulative index fell by 4.0% during April to February, 2018-19 over the corresponding period of previous year.       

The CNX Nifty is currently trading at 11692.25, up by 23.10 points or 0.20% after trading in a range of 11655.85 and 11711.55. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 3.26%, Eicher Motors up by 2.46%, Tata Motors up by 2.43%, Power Grid Corporation up by 2.25% and Indusind Bank was up by 1.56%. On the flip side, HCL Technologies down by 1.17%, Bajaj Auto down by 1.15%, Grasim Industries down by 0.98%, Britannia down by 0.82% and UPL was down by 0.72% were the top losers.

Asian markets were trading mostly in green; KOSPI rose 7.14 points or 0.33% to 2,175.42, Shanghai Composite gained 12.93 points or 0.41% to 3,183.29, Hang Seng increased 33.84 points or 0.11% to 29,595.86, Taiwan Weighted strengthened 56.42 points or 0.53% to 10,699.05, Straits Times advanced 23.90 points or 0.74% to 3,274.41and Jakarta Composite was up by 6.57 points or 0.1% to 6,459.18. On the flip side Nikkei 225 was down by 4.43 points or 0.02% to 21,504.60.