Indian equities remain in green terrain

Indian equity benchmarks continued their trade in green territory in afternoon session, on buying by funds and retail investors. Sentiments remained positive with Petroleum and Natural Gas Minister Dharmendra Pradhan’s statement that India will get additional supplies from other major oil producing countries to compensate for loss of Iranian oil. Some optimism also 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. Indian companies have sold $3.7 billion in high-yield, or junk-rated, bonds so far this year, an increase of 187% from 2018. However, gains were limited as investors remained cautious amid third phase polling and Q4 results, ahead of F&O expiry. Meanwhile, a delegation led by PHD Chamber President Rajeev Talwar met RBI Governor Shaktikanta Das and discussed concerns related to the growth of MSMEs, NBFCs, affordable housing and the real estate sector.

On the global front, Asian markets were trading mixed, as investors move cautiously ahead of a deluge of corporate results later in the week. Back home, the BSE Sensex is currently trading at 38736.95, up by 91.77 points or 0.24% after trading in a range of 38612.23 and 38832.61. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.22%, Energy up by 1.16%, Healthcare up by 0.67%, Realty up by 0.61% and FMCG was up by 0.48%, while Telecom down by 0.86%, Utilities down by 0.71%, Power down by 0.34%, Basic Materials down by 0.12% and Capital Goods was down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 2.08%, Reliance Industries up by 1.64%, Bajaj Finance up by 1.61%, Sun Pharma up by 1.55% and ONGC was up by 1.43%. On the flip side, NTPC down by 1.55%, TCS down by 1.12%, Tata Steel down by 1.09%, Bharti Airtel down by 1.02% and Mahindra & Mahindra was down by 0.91% were the top losers.

Meanwhile, the Finance Ministry has asked all departments to undertake a review of government guarantees given by respective ministries to their Central Public Sector Enterprises (CPSEs) or entities. The review should undertake aspects such as discharge of repayment obligations or interest obligations as per terms of the loan agreement and covenants and conditions met.

Besides, the details of CPSEs or entities due guarantee fee paid on time to the government should also be submitted. The Ministry has extended date for submission of these details to April 30 from April 10. Guarantees are contingent liabilities have the potential to impact the financial performance of the government. The ministry further said that the Fiscal Responsibility and Budget Management (FRBM) Rules stipulates that government cannot guarantee more than 0.5 percent of the GDP of the respective financial year to CPSE/entities.

All ministries and departments are requested that prioritised guarantee requirement for 2019-20 may be worked out to include only such proposals where the loan agreement can be signed and guarantee agreement can be executed during the year. The guarantees already approved by the Budget Division of Department of Economic Affairs, Finance Ministry but not executed till March 31, 2019, needs to be revalidated and such proposals may also be included on the total guarantee requirement of 2019-20.

The CNX Nifty is currently trading at 11619.65, up by 25.20 points or 0.22% after trading in a range of 11582.95 and 11645.95. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 5.07%, Indiabulls Housing Finance up by 3.19%, Yes Bank up by 2.16%, Sun Pharma up by 1.83% and Bajaj Finance was up by 1.58%. On the flip side, GAIL India down by 1.99%, NTPC down by 1.65%, Bharti Infratel down by 1.40%, Mahindra & Mahindra down by 1.30% and BPCL was down by 1.21% were the top losers.

Asian markets were trading mixed; Jakarta Composite soared 58.76 points or 0.92% to 6,473.50, Nikkei 225 surged 41.84 points or 0.19% to 22,259.74, Taiwan Weighted strengthened 37.97 points or 0.35% to 11,025.68 and KOSPI was up by 3.86 points or 0.17% to 2,220.51.

On the flip side, Straits Times trembled 7.37 points or 0.22% to 3,350.33, Hang Seng decreased 9.36 points or 0.03% to 29,953.90 and Shanghai Composite was down by 14.17 points or 0.44% to 3,200.87.