Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in the early noon session. Most of the sectoral indices were trading firm and Capital Goods was the top gainer on BSE, up by around 2.18% followed by Power and Industrials indices, trading up over 1.50%. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 1.20% each. Sentiments remained up-beat with Union Finance Minister Nirmala Sitharaman’s statement that investors can find no better place in the world than India that has a democracy loving and capitalist respecting environment. She added that the government was continuously working to bring reforms.

On the global front, Asian markets were trading mostly in red, as market sentiments got weighed following fears of a global economic slowdown and as concerns surfaced over possible risks to a new Brexit deal. Back on street, in scrip specific developments, shares of BHEL gained amid reports the government may look to reduce stake in the company. Besides, DHFL surged despite reporting consolidated net loss of Rs 242 crore in Q1.

The BSE Sensex is currently trading at 39225.59, up by 173.53 points or 0.44% after trading in a range of 38963.60 and 39261.20. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.29%, while Small cap index was up by 1.30%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.18%, Power up by 1.97%, Industrials up by 1.52%, PSU up by 1.51% and Energy up by 1.46%, while Telecom down by 0.21% and Bankex was down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.75%, Larsen & Toubro up by 1.92%, Reliance Industries up by 1.83%, Vedanta up by 1.32% and NTPC was up by 1.18%. On the flip side, Indusind Bank down by 1.22%, Mahindra & Mahindra down by 1.07%, Bharti Airtel down by 0.97%, Bajaj Auto down by 0.58% and ICICI Bank was down by 0.54% were the top losers.

Meanwhile, Minister of State for Finance, Anurag Singh Thakur has said non-banking financial companies (NBFCs) must sub-lend the money they get from banks to their customers, in order to help India fuel its economic growth. He also said that there is a need for further transmission of the credit from NBFCs to the industry especially by micro, small and medium enterprise (MSME) sector.

The minister said ‘I have spoken to the banks and requested them to ensure faster and greater disbursement of credit to ensure liquidity in the hands of NBFCs.’ Talking about the recently-held loan melas across 250 districts in the country, he said not many NBFCs were spotted there, which prompted him to reach out to the finance secretary to convey that it was very important to have NBFCs on board because they play a crucial role in the nation building process and in the growth of the economy.

To achieve the target of $5 trillion economy by 2024, Thakur said NBFCs have to play a very important role. He also said the industry needs to have right perception and sentiment in the market as he sought the help of the MSME sector in reaching out to the common man, and fuel country's economic growth.

The CNX Nifty is currently trading at 11635.60, up by 49.25 points or 0.43% after trading in a range of 11553.15 and 11645.90. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.75%, Coal India up by 2.81%, Larsen & Toubro up by 1.91%, Reliance Industries up by 1.81% and Ultratech Cement was up by 1.69%. On the flip side, Zee Entertainment down by 7.07%, Eicher Motors down by 1.49%, Indusind Bank down by 1.27%, Mahindra & Mahindra down by 1.17% and Bharti Airtel was down by 1.09% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 168.89 points or 0.63% to 26,679.60, Taiwan Weighted dropped 6.66 points or 0.06% to 11,180.22, Straits Times trembled 13.10 points or 0.42% to 3,113.04, KOSPI fell 19.59 points or 0.94% to 2,058.35 and Shanghai Composite was down by 25.09 points or 0.84% to 2,952.24. On the flip side, Nikkei 225 surged 53.28 points or 0.24% to 22,505.14 and Jakarta Composite was up by 7.96 points or 0.13% to 6,188.97.