Markets hold gaining momentum

Indian equity markets held their gaining momentum in late afternoon session, aided by firm opening of European markets. Trading sentiments remained bullish, as investments in the domestic capital market through participatory notes, led by equity allocation, rose to Rs 81,220 crore at the end of April on hopes of favourable market conditions. Out of the total investments made till April-end, Rs 58,820 crore was invested in the equities segment, Rs 21,542 crore in debt and Rs 123 crore in derivatives market. On the sectoral front, stocks related to Fintech companies were in focus, with Niti Aayog CEO Amitabh Kant’s statement that Fintech market in India is likely to expand to $31 billion in 2020. He further said India is one of the fastest growing fintech markets globally.

On the global front, European markets were trading in green, as Spain's consumer price inflation eased to the lowest level in nearly one-and-a-half years in May and retail sales grew less-than-expected in April. The preliminary data from INE showed that the flash consumer price index rose 0.8 percent year-on-year in May, slower than a 1.5 percent climb in April.  However, Asian markets were trading in red, after Malaysia's producer prices declined at a slower rate in April. The figures from the Department of Statistics showed that the producer prices index fell 1.4 percent year-over-year in April, following a 1.5 percent decline in March.

The BSE Sensex is currently trading at 39863.25, up by 361.20 points or 0.91% after trading in a range of 39500.56 and 39911.92. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.20%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were Telecom up by 1.80%, TECK up by 1.23%, IT up by 1.18%, Power up by 1.13% and Energy up by 1.13%, while Realty down by 0.66%, Auto down by 0.52%, Metal down by 0.40%, Consumer Disc down by 0.11% and Consumer Durables down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.36%, Bharti Airtel up by 2.94%, TCS up by 2.08%, Bajaj Finance up by 1.71% and Reliance Industries up by 1.56%. On the flip side, Sun Pharma down by 2.03%, Mahindra & Mahindra down by 1.69%, Tata Motors down by 1.53%, Vedanta down by 1.21% and ONGC down by 1.14% were the top losers.

Meanwhile, in order to achieve the development of a secondary market in corporate loans, the Reserve Bank of India (RBI) has constituted a task force to suggest policy and regulatory interventions.

Task Force will review the existing state of the market for loan sale/transfer in India as well as the international experience in loan trading. It will also make recommendations on required policy/regulatory interventions for facilitating development of secondary market in corporate loans, including loan transaction platform for stressed assets.

Further, the task force will also make recommendations for the creation of a loan contract registry to remove information asymmetries between buyers and sellers, its ownership structure and related protocols such as standardization of loan information, independent validation and data access.

The CNX Nifty is currently trading at 11959.55, up by 98.45 points or 0.83% after trading in a range of 11859.40 and 11968.55. There were 30 stocks advancing against 19 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were NTPC up by 3.32%, Bharti Airtel up by 2.94%, TCS up by 2.16%, Bajaj Finance up by 1.84% and BPCL up by 1.77%. On the flip side, Sun Pharma down by 2.41%, Eicher Motors down by 2.02%, Vedanta down by 1.93%, Zee Entertainment down by 1.89% and Mahindra & Mahindra down by 1.61% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 116.69 points or 0.43% to 27,119.02, Nikkei 225 slipped 60.84 points or 0.29% to 20,942.53, Straits Times trembled 27.15 points or 0.86% to 3,136.13 and Shanghai Composite was down by 7.97 points or 0.27% to 2,906.73. On the flip side, KOSPI rose 15.48 points or 0.77% to 2,038.80 and Taiwan Weighted was up by 81.21 points or 0.79% to 11,909.04.

All European markets were trading in green; UK’s FTSE 100 gained 28.75 points or 0.40% to 7,214.05, France’s CAC surged 29.71 points or 0.57% to 5,251.83 and Germany’s DAX was up by 71.23 points or 0.60% to 11,909.04.