Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the early noon session due to buying in Capital Goods, Realty and Oil & Gas stocks. Buying in frontline stocks such as Larsen & Toubro, Infosys and Axis Bank were aiding sentiment, while selling in Power Grid Corporation, Tech Mahindra and Bajaj Finance kept the gains in the markets in check. Sentiments remained up-beat with Crisil’s statement that it expects a recovery in rural demand in the country from March-April onwards owing to an increase in farm incomes, good monsoons and improving urban demand. Traders were also encouraged with India Ratings’ report that India's growth rate is expected to be marginally higher at 5.5 per cent in 2020-21 against the estimated 5 per cent for the current fiscal on the back of strong policy push coupled with revival in demand.

On the global front, Asian markets were trading mostly lower, as investors’ sentiment dulled with the worries over potential economic impact of the deadly coronavirus outbreak in China. The virus is spreading as millions of people travel for the Lunar New Year. More than 500 people have been infected, mostly in mainland China, though the disease has spread as far as the United States. Back on street, in scrip specific development, shares of Larsen & Toubro jumped on reporting rise of 15.21% in its net profit attributable to owners at Rs 2,352.12 crore for the quarter under review as compared to Rs 2,041.62 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 41196.77, up by 81.39 points or 0.20% after trading in a range of 41098.91 and 41377.35. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.76%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.00%, Realty up by 1.26%, Oil & Gas up by 1.21%, Industrials up by 1.14% and Telecom was up by 0.79%, while Metal down by 0.13% and FMCG was down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.80%, Infosys up by 1.44%, Axis Bank up by 1.43%, HCL Tech up by 0.96% and NTPC was up by 0.94%. On the flip side, Power Grid Corporation down by 1.15%, Tech Mahindra down by 1.07%, Bajaj Finance down by 0.86%, Asian Paints down by 0.69% and Reliance Industries was down by 0.46% were the top losers.

Meanwhile, the Department for Promotion of Industry and Internal Trade (DPIIT) has come out with quality control norms for certain steel items and cables. A move which will help in containing import and production of sub-standard products in the country. According to the two separate orders, these products shall have to conform to the specified standards and bear the standard mark under a licence from the Bureau of Indian Standards (BIS). The notified items cannot be produced, sold/traded, imported and stocked unless they bear BIS mark.

The goods comprised steel tubes, tubulars and other wrought steel fitting; steel tubes for structural purposes and water wells. The other items include heavy duty electric cables, aerial bunched cables, elastomer insulated cables, welding cables, shot firing cables, and halogen-free flame retardant cables. Both the orders will come into force with effect from August 1, 2020. As per to the orders, the BIS shall be the certifying and enforcing authority for the goods. However, these orders -- Steel Tubes (Quality Control) Order, 2020; and Cables (Quality Control) Order, 2020 -- shall not apply to goods or articles meant for export purposes.

The move assume importance as the government is working to formulate technical regulations, which include safety and quality standards, for over 350 products with a view to cut imports of those non-essential items. The issue was widely discussed during an inter-ministerial meeting in December 2019. The DPIIT, Department of Telecommunication, Department of Chemicals, IT and electronics ministry and steel ministry was consulted for imposition of import regulations. The target is to formulate these regulations for about 5,000 products but the current focus is on 371 items which accounts for $127 billion worth of imports.

The CNX Nifty is currently trading at 12122.70, up by 15.80 points or 0.13% after trading in a range of 12094.10 and 12179.05. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Indian Oil Corporation up by 5.10%, Yes Bank up by 4.16%, Larsen & Toubro up by 2.57%, GAIL India up by 1.51% and Infosys was up by 1.30%. On the flip side, Zee Entertainment down by 5.81%, Power Grid Corporation down by 1.70%, UPL down by 1.61%, Tech Mahindra down by 1.24% and Eicher Motors was down by 1.11% were the top losers.

Asian markets are trading mostly in red, KOSPI fell 20.25 points or 0.89% to 2,247.00, Nikkei 225 slipped 226.67 points or 0.94% to 23,804.68’ Shanghai Composite declined 83.40 points or 2.72% to 2,977.35, Hang Seng decreased 531.01 points or 1.87% to 27,810.03 and Straits Times was down by 20.30 points or 0.62% to 3,233.63. On the other side, Jakarta Composite was up by 8.44 points or 0.14% to 6,241.89.