Benchmarks extend gaining streak in early noon session

Local equity markets continued their gaining momentum in the early noon session, with Sensex and Nifty gaining over 150 and 50 points, respectively. Broader indices too equally participated in the rally with both mid and small cap indices trading with traction. Traders took support with Prime Minister Narendra Modi’s statement that he has invited Saudi companies to invest in India’s energy space saying that the government has set a target of $100 billion investment in the sector. He added India offers a huge investment opportunity in the infrastructure sector also as he emphasised that the country aims to be a $5 trillion economy in the next five years. On the global front, Asian markets were trading mixed, as the prospect of a rate cut by the Federal Reserve was countered by worries that Sino-US first-stage trade deal could be delayed.

Back home, buying in Telecom, Oil & Gas, TECK and Capital Goods stocks helped markets to trade higher. Telecom sector shares were trading higher with the report that the government has formed a committee of secretaries to explore a financial bailout package for the telecom sector by lowering spectrum charges as well as ending the era of free mobile phone calls and dirt cheap data as companies look at the government for avoiding payment of thousands of crores of rupees in overdue statutory levies. Oil & Gas sector remained in focus with Prime Minister Narendra Modi’s statement that India will invest $100 billion in oil and gas infrastructure to meet energy needs of an economy that is being targeted to nearly double in five years, as he sought investment from oil kingpin Saudi Arabia and other nations to boost supplies.

The BSE Sensex is currently trading at 39995.54, up by 163.70 points or 0.41% after trading in a range of 39805.11 and 40100.26. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.36%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Telecom up by 2.57%, Oil & Gas up by 1.26%, TECK up by 1.25%, Capital Goods up by 1.11% and IT was up by 1.09%, while Consumer Durables down by 0.78%, Auto down by 0.78%, Consumer Disc down by 0.35%, Realty down by 0.35% and Metal was down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.79%, Infosys up by 2.65%, ITC up by 2.41%, Larsen & Toubro up by 1.29% and HDFC Bank up by 1.19%. On the flip side, Tata Motors down by 1.62%, Maruti Suzuki down by 1.61%, Tata Motors - DVR down by 1.32%, ICICI Bank down by 1.29% and Indusind Bank down by 1.23% were the top losers.

Meanwhile, the Department of Telecommunications (DoT) said that the government has formed a committee of secretaries to explore a financial bailout package for the telecom sector by lowering spectrum charges as well as ending the era of free mobile phone calls and dirt cheap data as companies look at the government for avoiding payment of thousands of crores of rupees in overdue statutory levies.

The committee, formed under Cabinet Secretary Rajiv Gauba, has been asked to examine all aspects of financial stress faced by service providers and suggest measures to mitigate them. The panel, which will comprise secretaries to the ministries of finance, law, and telecom, has been asked to look at the demands of telecom service providers (TSPs) for deferment of payments they had promised for the spectrum won through auction as well as consider lowering airwave usage charge. The panel will also consider lowering the obligation of TSPs for providing 5 percent of their annual revenues for the Universal Service Obligation Fund (USOF).

In similar, Telecom Regulatory Authority of India (TRAI) is expected to examine prescribing minimum charge for voice and data services, which according to old telecom operators will ensure long-term viability and robust financial health of the sector. The government's decision to form a committee comes a day after an unsigned paper seeking a waiver of interest and penalties on the unpaid amount, as well as staggering payment of principal licence fee over 10 years was submitted to the DoT.

The CNX Nifty is currently trading at 11839.85, up by 53.00 points or 0.45% after trading in a range of 11784.45 and 11883.95. There were 27 stocks advancing against 22 stocks declining on the index, while 1 stock remains unchanged on the index on the index.

The top gainers on Nifty were Bharti Airtel up by 2.83%, Infosys up by 2.64%, ITC up by 2.49%, Bharti Infratel up by 2.25% and Hindalco up by 1.68%. On the flip side, Maruti Suzuki down by 1.58%, Cipla down by 1.52%, Coal India down by 1.48%, ICICI Bank down by 1.25% and UPL down by 1.15% were the top losers.

Asian market were trading mixed; Nikkei 225 slipped 136.55 points or 0.59% to 22,837.58, Hang Seng decreased 102.26 points or 0.38% to 26,684.50, KOSPI fell 13.43 points or 0.64% to 2,079.26 and Shanghai Composite declined 16.84 points or 0.57% to 2,937.34. On the flip side, Jakarta Composite soared 15.81 points or 0.25% to 6,296.95, Straits Times advanced 10.77 points or 0.34% to 3,207.81 and Taiwan Weighted was up by 25.24 points or 0.22% to 11,359.11.