Key indices remain positive during late morning deals

Indian equity benchmarks remained higher in late morning deals, with both Sensex and Nifty maintaining their notable gains, as bulls held their grip over the Dalal Street. Positive cues from other Asian markets helped key indices to maintain gaining momentum. Domestic sentiments were positive, as the Central government has lifted the embargo placed granting businesses to private banks, which is expected to enhance customer convenience, spur competition and higher efficiency in standards of customer services. In a statement, the Department of Financial Services (DFS) said that 'The Government has lifted the embargo on private banks (only a few were permitted earlier) for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc.'

On the global front, Asian markets were trading in green, even after Malaysia's producer prices declined at a softer rate in January. The figures from the Department of Statistics showed that the producer price index fell 0.1 percent year-on-year in January, following a 2.1 percent decrease in December. Among sectors, prices of mining declined the most by 28.3 percent annually in January and prices for electricity and gas supply fell 1.9 percent. Meanwhile, prices for agriculture, forestry and fishing grew 22.6 percent. Prices for water supply and manufacturing increased by 0.5 percent and 1.1 percent, respectively.

The BSE Sensex is currently trading at 51102.48, up by 320.79 points or 0.63% after trading in a range of 51057.74 and 51386.12. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.96%, while Small cap index was up by 0.98%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.19%, Metal up by 2.16%, PSU up by 1.91%, Power up by 1.84% and Utilities up by 1.68%, while FMCG down by 0.10% was the only losing index on BSE.

The top gainers on the Sensex were ONGC up by 3.87%, Axis Bank up by 3.64%, Indusind Bank up by 3.52%, NTPC up by 2.66% and Sun Pharma up by 2.02%. On the flip side, Nestle down by 1.26%, Asian Paints down by 1.13%, ICICI Bank down by 0.94%, Hindustan Unilever down by 0.75% and Ultratech Cement down by 0.69% were the top losers.

Meanwhile, bringing optimism in financial market, Finance Minister Nirmala Sitharaman stated that the Centre has lifted the embargo on the grant of government businesses to private banks. This will enable banks to participate in all developmental activities. She said ‘Private Banks can now be equal partners in development of the Indian economy, furthering the government's social sector initiatives and enhancing customer convenience’.

With the lifting of the embargo, all private sector now will be able to conduct government-related banking transactions such as taxes and other revenue payment facilities, pension payments and small savings schemes. The RBI could also, in due course, authorize private sector banks to undertake any other government businesses.

In 2012, the finance ministry had not allowed private banks, barring some, to undertake government business for three years. In 2015, the government had continued with the embargo, and allowed the private sector with existing government agency business to continue without any fresh authorisation to private banks.

Recently, Finance Minister Nirmala Sitharaman, in her budget speech, had stated that more public sector lenders would be privatised in the upcoming fiscal. As per a report, the government has filtered out four state-run banks - Central Bank of India, Bank of India, Bank of Maharashtra, and Indian Overseas Bank for privatisation.

The CNX Nifty is currently trading at 15092.65, up by 110.65 points or 0.74% after trading in a range of 15065.35 and 15170.85. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.83%, ONGC up by 4.05%, Hindalco up by 3.62%, Indusind Bank up by 3.55% and Axis Bank up by 3.54%. On the flip side, Nestle down by 1.29%, Asian Paints down by 0.94%, ICICI Bank down by 0.94%, Hindustan Unilever down by 0.80% and Larsen & Toubro down by 0.78% were the top losers.

All Asian markets were trading in green; Nikkei 225 surged 447.47 points or 1.51% to 30,119.17, Taiwan Weighted strengthened 174.01 points or 1.07% to 16,386.54, Jakarta Composite soared 32.83 points or 0.53% to 6,283.88, Straits Times advanced 44.55 points or 1.52% to 2,969.13, KOSPI rose 87.56 points or 2.92% to 3,082.54, Shanghai Composite gained 38.20 points or 1.07% to 3,602.28 and Hang Seng increased 638.16 points or 2.15% to 30,356.40.