Local equities trim some initial gains

Local benchmarks trimmed some of their initial gains in morning session but managed to trade in green territory. Traders were seen piling positions in Energy, Consumer Durables and Healthcare sector, while selling was witnessed in Utilities, Capital Goods and Industrials sector stocks. Some optimism came with a private report that sales of Indian junk bonds have made a big comeback in 2019, almost tripling to hit a five-year high, boosted by a risk-on rally prompted by a dovish US Federal Reserve that has given the Asia market a record start to the year. On the sectoral front, coal industry stocks were in focus, as India's coal import increased by 8.8 percent to 233.56 million tonnes in 2018-19. Coal imports were at 214.61 MT in 2017-18. Beside, airlines industry stock were trading mostly in red, despite a report state that domestic air passenger traffic growth managed to remain in the green in March growing flat or 0.14 percent, largely due to the huge capacity reduction following the troubles at Jet Airways in the month.

On the global front, Asian markets were trading mixed, as oil prices surged to nearly six-month highs after the US said it would soon impose sanctions on all buyers of Iranian oil. Back home, India, the second biggest buyer of Iranian oil, has lined up alternate sources to make up for the likely shortfall in supplies after the US decided not to give waiver from its sanctions for buying oil from the Persian Gulf nation.

The BSE Sensex is currently trading at 38711.56, up by 66.38 points or 0.17% after trading in a range of 38612.23 and 38832.61. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.05%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Energy up by 0.88%, Consumer Durables up by 0.73%, Healthcare up by 0.65%, Realty up by 0.47% and Consumer Disc was up by 0.26%, while Utilities down by 0.92%, Power down by 0.48%, Capital Goods down by 0.46%, Industrials down by 0.30%, Basic Materials was down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.90%, Hero MotoCorp up by 1.43%, ONGC up by 1.43%, Coal India up by 1.39% and Yes Bank was up by 1.38%. On the flip side, Tata Steel down by 1.42%, NTPC down by 1.36%, Bharti Airtel down by 0.81%, TCS down by 0.81% and Tata Motors - DVR was down by 0.79% were the top losers.

Meanwhile, Insolvency and Bankruptcy Board of India’s (IBBI) Chairperson M S Sahoo has said implementation of the Insolvency and Bankruptcy Code (IBC) may become more seamless in the next one year.  Sahoo further stated issues like efficiency of insolvency resolution and the liquidation framework for corporates, individual and partnership firms are likely to a go through a relook.

He mentioned that some of the changes in the code can be expected by April next year. With an objective to ease out the various issues, the corporate affairs ministry and the IBBI have invited comments from stakeholders for their views on a number of issues concerning the IBC. The ministry has invited comments till May 7, 2019.

Some of the main topics that will come up for discussion in the next one-two years are those relating to personal and corporate insolvency, group insolvency and cross-border insolvency. Sahoo said ‘it is like crowd sourcing of ideas. All comments will be considered together. The regulations are expected by March end, so that the people know that a new law is coming by April’. Besides, he added that like any new law, the IBC, too, has challenges to overcome.

The CNX Nifty is currently trading at 11611.50, up by 17.05 points or 0.15% after trading in a range of 11582.95 and 11645.95. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 4.02%, Sun Pharma up by 1.83%, Yes Bank up by 1.41%, ONGC up by 1.39% and Indiabulls Housing Finance was up by 1.37%. On the flip side, GAIL India down by 2.55%, NTPC down by 1.54%, BPCL down by 1.51%, Tata Steel down by 1.31% and Adani Ports & SEZ was down by 1.09% were the top losers.

Asian markets were trading mixed; Hang Seng decreased 17.97 points or 0.06% to 29,945.29, Shanghai Composite declined 11.41 points or 0.35% to 3,203.63, Straits Times trembled 2.14 points or 0.06% to 3,355.56 and Nikkei 225 was down by 1.52 points or 0.01% to 22,216.38.

On the other hand, KOSPI rose 1.18 points or 0.05% to 2,217.83, Taiwan Weighted strengthened 17.09 points or 0.16% to 11,004.80 and Jakarta Composite was up by 44.12 points or 0.69% to 6,458.86.