Key indices keep head above water

Local equity benchmarks managed to keep their head above water in afternoon deals. Selling pressure in metal, realty and power stocks kept lid on the gains, while buying in IT, TECK and healthcare stocks helped both Sensex and Nifty to trading above 48,200 and 14,100 marks, respectively. Traders took some solace as Minister of State for Finance Anurag Thakur stated that the central government is making efforts to turn India into a manufacturing and export powerhouse. Thakur said manufacturing will now be broad-based in the country. On the sectoral front, oil stocks were in focus as OPEC+ resumes meeting on February output levels, the deadlocked talks between major producers about potential changes in February output are set to continue later in the day while fuel demand concerns lingered amid new COVID-19 lockdowns.

On the global front, Asian markets were trading mostly higher at this point of time despite uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden’s ability to pursue his preferred economic policies. Back on street, in scrip specific developments, Tata Power jumped on partnering with SIDBI, while Karur Vysya Bank slipped on reporting marginal fall in total deposits in Q3

The BSE Sensex is currently trading at 48223.93, up by 47.13 points or 0.10% after trading in a range of 47903.38 and 48239.59. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.56%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were IT up by 0.92%, TECK up by 0.73%, Healthcare up by 0.39%, Telecom up by 0.34% and Bankex was up by 0.31%, while Metal down by 1.31%, Energy down by 0.79%, Auto down by 0.53%, PSU down by 0.43% and Power was down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.96%, HDFC up by 2.33%, TCS up by 1.59%, Indusind Bank up by 0.97% and Dr. Reddys Lab was up by 0.90%. On the flip side, Bajaj Finance down by 2.06%, ONGC down by 1.70%, NTPC down by 1.62%, Mahindra & Mahindra down by 1.23% and Bajaj Finserv was down by 1.06% were the top losers.

Meanwhile, ICRA Ratings in its latest report has said that infrastructure credit by banks and non-banking financial companies-infrastructure finance company (NBFC-IFCs) in the country marginally grew to Rs 22.6 lakh crore in the first half of the current fiscal (H1FY21) as compared to Rs 22.5 lakh crore in 2019-20. It noted that the tepidness in infrastructure credit in H1FY21 was primarily due to the sequential de-growth (10 percent) in banking sector credit to the infrastructure segment. However, it said NBFC-IFCs continued to grow at a modest sequential pace of 12 percent in this period.

According to the report, the growth was majorly led by disbursements related to the liquidity package announced by the government for cash-strapped discoms. It noted that the share of NBFC-IFCs in infrastructure credit has increased to 53 percent as of September 30, 2020 from about 38 percent five years ago. It stated that the decline in share of banks during past few years was largely attributable to the conversion of their exposures to state distribution companies into bonds and subdued lending amid asset quality issues and capital constraints. At the same time, it said portfolio for NBFC-IFCs continued to grow though largely at the back of growth in the public sector NBFC-IFCs.

The report further said as for asset quality, NBFC-IFCs witnessed a deterioration during FY2016-FY2018 on the back of severe stress in the thermal power sector. However, it pointed out that the trend over the past three years suggested receding asset quality pressures, particularly up to the onset of COVID-19-induced disruption. It said the gross stage 3 percentage had eased to 5.7 percent as on March 31, 2020 from 7.3 percent as on March 31, 2018, supported by controlled fresh slippages and some resolution in legacy stressed assets. It added that the gross stage 3 percentage for NBFC-IFCs eased further to four-year low of 5 per cent as on September 30, 2020, partly aided by limited forward bucket movement amid the prolonged moratorium period.

The CNX Nifty is currently trading at 14140.10, up by 7.20 points or 0.05% after trading in a range of 14048.15 and 14143.85. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 4.15%, HDFC up by 2.35%, Wipro up by 1.96%, TCS up by 1.65% and HDFC Life Insurance was up by 1.63%. On the flip side, Bajaj Finance down by 2.14%, Hindalco down by 2.06%, JSW Steel down by 1.98%, Tata Motors down by 1.86% and NTPC was down by 1.67% were the top losers.

Asian markets were trading mostly higher; KOSPI rose 46.12 points or 1.57% to 2,990.57, Hang Seng increased 128.06 points or 0.47% to 27,600.87, Taiwan Weighted strengthened 98.00 points or 0.66% to 15,000.03, Shanghai Composite gained 18.21 points or 0.52% to 3,521.17 and Jakarta Composite was up by 32.43 points or 0.53% to 6,137.33.

On the other side; Straits Times trembled 3.04 points or 0.11% to 2,855.86 and Nikkei 225 was down by 99.75 points or 0.37% to 27,158.63.