Indices continue to trade with minor gains in morning deals

Indian equity benchmarks continued to trade marginally in green in morning deals, tracking gains in index majors Infosys, ICICI Bank and HCL Technologies. Sentiments remained positive with Moody's Investors Service in its latest report stated that India's economic recovery reduces the risk of a sharp deterioration in public sector banks' (PSBs) asset quality. But, it said the capital would remain insufficient to support credit growth and absorb unexpected shocks. Some support also came as leading trade bodies are expecting that the outbound shipments will rise in the coming months as the uncertainty in global markets began to subside. However, gains were limited as traders remained on sidelines ahead of the release of Index of Industrial Production (IIP) data for December and Consumer Price Index (CPI) data for January later in the day.

On the global front, Asian markets were trading in red, tracking the lackluster cues overnight from Wall Street and lower commodity prices. Many of the markets in the region, including China, Japan and South Korea, are closed for the Lunar New Year holiday. Back home, on the sectoral front, jewellery industry stocks remained in focus with data of the Gem Jewellery Export Promotion Council (GJEPC) showing that gems and jewellery exports dipped 7.8 percent in January to $2.7 billion as against $2.9 billion a year ago.

The BSE Sensex is currently trading at 51613.61, up by 82.09 points or 0.16% after trading in a range of 51492.95 and 51715.04. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.12%, while Small cap index up by 0.49%.

The top gaining sectoral indices on the BSE were IT up by 1.10%, Realty up by 0.96%, TECK up by 0.89%, Capital Goods up by 0.60%, Industrials up by 0.43% while, FMCG down by 1.12%, Metal down by 0.90%, Oil & Gas down by 0.60%, Telecom down by 0.51%, Consumer Durables down by 0.47% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.52%, ICICI Bank up by 0.79%, HCL Technologies up by 0.73%, TCS up by 0.59% and Reliance Industries up by 0.57%. On the flip side, ITC down by 3.55%, ONGC down by 1.71%, Sun Pharma down by 1.13%, NTPC down by 1.13% and Bharti Airtel down by 0.69% were the top losers.

Meanwhile, in order to look into issues like promoting localisation and boosting manufacturing, the Commerce and Industry Minister Piyush Goyal has said the government has constituted a committee comprising members from public and private sectors. Goyal also said the government is promoting safety and quality of products as it would help promote competitiveness of domestic industries.

He said ‘we have a committee which is working on issues like how to increase localisation, how to boost manufacturing of components. It is a public-private partnership committee.’ He added that India has all the key elements such as ideas and low cost of labour to promote manufacturing of good quality toys.

The committee is working on 24 champion sectors including toys and furniture. Sector specific groups have been formed which are working on actionable points with a view to promoting growth of these sectors. Further, He said the government is taking steps such as raising import duty and issuing quality control order to promote the toy industry.

The CNX Nifty is currently trading at 15193.30, up by 20.00 points or 0.13% after trading in a range of 15157.75 and 15223.30. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.04%, Infosys up by 1.74%, Tata Motors up by 1.18%, HCL Technologies up by 1.08% and Grasim Industries up by 0.86%. On the flip side, ITC down by 3.80%, Coal India down by 2.37%, ONGC down by 1.81%, NTPC down by 1.23% and GAIL India down by 1.10% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 108.01 points or 0.37% to 29,454.92.