Bourses hold gains in late afternoon session

Indian equity bourses were holding their gains in late afternoon session, tracking firm European markets. In line with the larger peers, the broader markets also maintained their gains in late noon deals. Traders were getting comfort, as Engineering exporters’ apex body Engineering Export Promotion Council of India (EEPC) urged the Reserve Bank of India (RBI) to facilitate easy and cheaper bank loans mainly for the Micro, Small, and Medium Enterprises (MSMEs). However, anxiety  prevailed on the street, amid reports that India inflation likely crept up slightly to a six-month high in April, driven mainly by food prices, although holding below the Reserve Bank of India's medium-term target of 4 percent for the ninth straight month.

On the sectoral front, banking stocks were trading higher, despite the Reserve Bank’s data report showed that both bank credit and deposit growth lost the momentum and slowed to 12.95 percent and 9.71 percent at Rs 96.21 lakh crore and 124.86 lakh crore respectively, in the fortnight to April 26. In the previous fortnight, credit offtake grew 14.19 per cent and deposits 10.60 percent.

On the global front, European markets were trading in green, after Germany's exports rebounded at the fastest pace in three months in March, defying expectations for further decline, and added strength to hopes that the biggest euro area economy performed strongly in the first three months of the year, after narrowly escaping a recession in the previous quarter. The figures from the Federal Statistical Office showed that exports rose 1.5 percent month-on-month in March, after a revised 1.2 percent fall in February. Asian markets were also trading in green, even as an increase in US tariffs on $200 billion of Chinese goods kicked in and China's commerce ministry said it would take necessary counter-measures.

The BSE Sensex is currently trading at 37672.35, up by 113.44 points or 0.30% after trading in a range of 37434.59 and 37721.98. There were 15 stocks advancing against 15 stocks declining, while 1 remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.45%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Telecom up by 1.11%, Consumer Durables up by 0.91%, Bankex up by 0.84%, PSU up by 0.41% and Realty up by 0.41%, while Metal down by 1.18%, IT down by 0.61%, Oil & Gas down by 0.51%, Basic Materials down by 0.34% and TECK down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.14%, Bharti Airtel up by 2.87%, HDFC up by 1.89%, Tata Motors - DVR up by 1.86% and ICICI Bank up by 1.53%. On the flip side, Tata Steel down by 5.15%, HCL Tech. down by 3.72%, Yes Bank down by 2.29%, Indusind Bank down by 1.33% and ONGC down by 1.30% were the top losers.

Meanwhile, in its suggestion list, the engineering exporters' apex body, Engineering Export Promotion Council (EEPC) of India has said that the Reserve Bank of India (RBI) should facilitate easy and cheaper bank loans mainly for the MSME exporters, amid anxious global economic environment. It further noted that with US-China trade tensions leaving the global financial markets and trade in a state of anxiety, it is time for Indian exporters to stay competitive.

The apex body suggested to the RBI that the Interest Equalisation Scheme for the exporters become horizontal in nature by covering the entire MSME sector, so that the linkage with exports goes away and does not fall foul of the WTO’s norms as well.

Besides, EEPC recommended that the banks should not ask for external credit rating as they are doing internal rating and banks be advised not to charge loan application processing and credit limit renewal fee. The engineering exporters' apex body also said that RBI should ask banks not to insist for discounting of usance export bills.

The CNX Nifty is currently trading at 11329.85, up by 28.05 points or 0.25% after trading in a range of 11266.55 and 11345.80. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 3.42%, Bharti Airtel up by 2.88%, SBI up by 2.87%, Indiabulls Housing Finance up by 2.78% and Adani Ports &Special up by 2.75%. On the flip side, Tata Steel down by 5.60%, HCL Tech. down by 4.14%, Yes Bank down by 2.70%, Indian Oil Corporation down by 1.69% and Indusind Bank down by 1.59% were the top losers.

Asian markets were trading mostly in green; Straits Times gained 9.24 points or 0.28% to 3,278.94, Hang Seng surged 255.37 points or 0.90% to 28,566.44, KOSPI rose 6.03 points or 0.29% to 2,108.04 and Shanghai Composite was up by 82.15 points or 2.88% to 2,933.10. On the flip side, Jakarta Composite fell 20.67 points or 0.33% to 6,178.13, Taiwan Weighted slipped by 20.68 points or 0.19% to 10,712.99 and Nikkei 225 was down by 57.21 points or 0.27% to 21,344.92.

All European markets were trading in green; UK’s FTSE 100 gained 48.47 points or 0.67% to 7,255.88, France’s CAC rose 51.29 points or 0.97% to 5,364.45 and Germany’s DAX was up by 115.41 points or 0.96% to 12,089.33.