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Sensex, Nifty remain in green

18 Jun 2020 Evaluate

Indian equity benchmarks remained in green terrain during late morning deals, despite weak cues from the other Asian markets. Gains garnered by Metal, Power and PSU stocks, were helping key indices to keep their heads above water, while Bajaj Finance gained the most among all major industry players on the BSE. In line with the larger peers, the broader indices were too remained in green terrain. However, upper side remained capped, after Fitch Ratings revised India's outlook to 'negative' from 'stable', stating that the coronavirus pandemic has significantly weakened the country's growth prospects for the year and exposed the challenges associated with a high public-debt burden.

On the global front, Asian markets were trading in red, as Hong Kong's jobless rate rose sharply during the March to May period to the highest level in over fifteen years. The data from the Census and Statistics Department showed that the jobless rate increased to 5.9 percent during the March to May period from 5.2 percent during February to April.

The BSE Sensex is currently trading at 33614.33, up by 106.41 points or 0.32% after trading in a range of 33371.52 and 33662.17. There were 15 stocks advancing against 14 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.62%, while Small cap index was up by 1.16%.

The top gaining sectoral indices on the BSE were Metal up by 2.19%, Power up by 1.99%, PSU up by 1.58%, Utilities up by 1.09% and Industrials up by 0.94%, while Auto down by 0.11% and Healthcare down by 0.05% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.25%, ITC up by 2.81%, Power Grid up by 2.32%, Tata Steel up by 1.65% and HDFC up by 0.94%. On the flip side, ONGC down by 0.89%, Nestle down by 0.75%, TCS down by 0.70%, Maruti Suzuki down by 0.63% and Hindustan Unilever down by 0.56% were the top losers.

Meanwhile, with an aim to strengthen the capital base mainly of small housing finance companies (HFCs), the Reserve Bank of India (RBI) has proposed to double the minimum net owned fund (NOF) requirement for HFCs to Rs 20 crore and classification of such firms under its draft framework for these companies. A new category of systematically important HFCs based on financial parameters and restrict lending by HFCs either to a construction company or flat buyers of that company have also been proposed in the draft framework.

The RBI said that existing HFCs would be provided with a glide path to achieve minimum NOF of Rs 20 crore. They will be required to reach Rs 15 crore within one year and Rs 20 crore within two years. Regarding the classification of HFCs, the RBI said that they would be split into systemically important and non-systemically important companies on the lines of NBFCs. At present, HFC regulations are common for all HFCs irrespective of their asset size and ownership, and non-deposit taking HFCs (HFC-ND) with asset size of Rs 500 crore and above; and all deposit-taking HFCs (HFCD), irrespective of asset size, will be treated as systemically important HFCs.

On the other hand, HFCs with asset size below Rs 500 crore will be treated as non-systemically important HFCs (HFC-non-SI). While the regulations for HFC-NDSI and HFC-Ds will be as existing under NHB regulations or harmonised with NBFC regulations, the regulations for HFC-non-SI will be brought on par with relevant regulations for NBFC-ND-non-SI. Among other things, the draft regulations propose to restrict lending by the HFCs to either the construction company or individuals purchasing flats from the company. The HFC’s exposure in its group entities (lending and investment) directly or indirectly cannot be more than 15% of owned fund for a single entity in the group and 25% of owned fund for all such group entities.

The draft also proposes that foreclosure charges as a measure of customer protection and also in order to bring in uniformity, no foreclosure charges/pre-payment penalties shall be levied on any floating rate term loan sanctioned for purposes other than business to individual borrowers with or without co-obligants. Since similar regulations are currently not prescribed for HFCs, it is proposed to extend these instructions to HFCs. Post transfer of regulation of HFCs from National Housing Bank (NHB) to RBI in August 2019, the central bank had said it will carry out a review of the extant regulatory framework applicable to HFCs.

The CNX Nifty is currently trading at 9927.55, up by 46.40 points or 0.47% after trading in a range of 9845.05 and 9941.20. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Coal India up by 5.99%, Vedanta up by 3.57%, Zee Entertainment up by 3.55%, Bajaj Finserv up by 3.38% and Bajaj Finance up by 3.34%. On the flip side, Adani Ports & SEZ down by 0.86%, Shree Cement down by 0.76%, Nestle down by 0.76%, Maruti Suzuki down by 0.71% and TCS down by 0.67% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 82.14 points or 0.37% to 22,373.62, Hang Seng decreased 53.87 points or 0.22% to 24,427.54, Taiwan Weighted dropped 10.06 points or 0.09% to 11,524.53, Jakarta Composite lost 6.28 points or 0.13% to 4,981.50, KOSPI fell 4.14 points or 0.19% to 2,136.91 and Straits Times trembled 3.44 points or 0.13% to 2,666.18. On the flip side, Shanghai Composite gained 1.01 points or 0.03% to 2,936.88.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
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Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
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SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

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