Bourses back in green

Indian equity bourses came back in green terrain in late afternoon session, tracking firm European markets. Traders were getting relief with Commerce and Industry minister Piyush Goyal’s statement that the repo rate cut by the Reserve Bank of India (RBI) will help boost India's economy by making loans affordable to MSMEs, exporters and home buyers. He also added that removal of charges on NEFT and RTGS transactions will bring great relief to the people and will help in promoting Digital India initiative. Adding comfort on the street, industry chambers hailed the RBI's decision to cut lending rate by 0.25 per cent as a welcome step to boost demand and revive economy.

On the global front, European markets were trading in green, as France's industrial production recovered in April despite the weakness in output of transport equipment and petroleum. The data published by the statistical office Insee showed that industrial output rose 0.4 percent in April from March when it was down 1.1 percent. The April rate came in line with expectations. Asian markets were also trading in green.

Back home, stocks related to the automobile industry were in watch, after Federation of Automobile Dealers Associations (FADA) said the hike in third-party motor insurance premiums for FY20 will further hit vehicle sales, which have already been witnessing a prolonged slump. Insurance Regulatory and Development Authority of India's (IRDAI) order to hike premium rates for the third party motor insurance for the current financial year will come into effect from June 16.

The BSE Sensex is currently trading at 39637.71, up by 107.99 points or 0.27% after trading in a range of 39279.47 and 39693.21. There were 14 stocks advancing against 16 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.04%, while Small cap index was down by 0.10%.

The top gaining sectoral indices on the BSE were Telecom up by 1.05%, TECK up by 0.68%, Consumer Durables up by 0.67%, IT up by 0.64% and Bankex up by 0.57%, while Utilities down by 1.10%, Power down by 0.58%, Realty down by 0.57%, Energy down by 0.46% and Metal down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.52%, ICICI Bank up by 1.37%, SBI up by 1.36%, Mahindra & Mahindra up by 1.35% and Bharti Airtel up by 1.17%. On the flip side, Yes Bank down by 2.83%, Power Grid down by 1.99%, ONGC down by 1.15%, Coal India down by 0.93% and Reliance Industries down by 0.76% were the top losers.

Meanwhile, after the Reserve Bank of India (RBI) cut repo rate by 25 bps to 5.75%, Commerce and Industry Minister Piyush Goyal has said that the decision will help boost India's economy by making loans affordable to MSMEs, exporters and home buyers.

Goyal further noted that removal of charges on NEFT and RTGS transactions will bring great relief to the people and will help in promoting Digital India initiative.

For third time in a row, RBI in its Second Bi-Monthly Monetary Policy Statement, 2019-20, cut the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points (bps) to 5.75% from 6.0% in line with expectation. Consequently, the reverse repo rate under the LAF stands adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0%.

The CNX Nifty is currently trading at 11878.75, up by 35.00 points or 0.30% after trading in a range of 11769.50 and 11892.85. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 2.29%, Tech Mahindra up by 1.68%, BPCL up by 1.59%, Bajaj Finance up by 1.51% and Mahindra & Mahindra up by 1.48%. On the flip side, Yes Bank down by 2.89%, Dr. Reddy’s Lab down by 2.63%, Power Grid down by 1.79%, Cipla down by 1.57% and ONGC down by 1.39% were the top losers.

Asian markets were trading in green, KOSPI rose 3.22 points or 0.16% to 2,072.33, Straits Times surged 11.77 points or 0.37% to 3,157.95 and Nikkei 225 was up by 110.67 points or 0.53% to 20,884.71.

All European markets were trading in green; UK’s FTSE 100 gained 53.42 points or 0.74% to 7,313.27, France’s CAC surged 69.46 points or 1.32% to 5,347.89 and Germany’s DAX was up by 82.01 points or 0.69% to 12,035.15.