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Sensex, Nifty extend gains in early noon session
Jan-17-2019

Domestic equity indices extended their gains in early noon session with Sensex and Nifty trading above 36,400 and 10,900 marks, respectively. Oil & Gas, Energy and Consumer Durables stocks were on a buying spree. Besides, broader indices were also trading in green, supporting their larger peers. Sentiment got boost as RBI has come out with a new policy for overseas borrowings, allowing all eligible entities to raise foreign funding under the automatic route and removing sectoral curbs. All eligible borrowers can now raise external commercial borrowings (ECB) up to $750m per fiscal under the automatic route. Meanwhile, an unlimited number of highly-skilled Indian workers will be able to migrate to the UK under new proposals that could come into effect in 2021. In the new system the country will be open to the 'best and brightest' from India. However, foreign portfolio investors (FPIs) sold shares worth Rs 90.10 crore Wednesday, as per provisional data available with BSE.

On the global front, Asian markets were trading mostly in green, as upbeat bank earnings bolstered Wall Street, while an anti-climactic end to the latest chapter in the Brexit saga gave sterling a moment’s peace. Back on street, A GST ministerial panel will suggest whether a uniform tax rate should be imposed on lotteries or the current differential tax rate system be continued. Currently, a state-organized lottery attracts 12 per cent GST while a state-authorised lottery attracts 28 per cent tax.

The BSE Sensex is currently trading at 36426.85, up by 105.56 points or 0.29% after trading in a range of 36364.64 and 36468.42. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.19%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.08%, Energy up by 0.95%, Consumer Durables up by 0.68%, Realty up by 0.50% and Auto was up by 0.47%, while Industrials down by 0.18% and Capital Goods was down by 0.09% were the only losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.28%, TCS up by 1.28%, Power Grid Corporation up by 1.17%, Maruti Suzuki up by 1.04% and Reliance Industries was up by 0.98%. On the flip side, Yes Bank down by 2.45%, Bajaj Finance down by 0.99%, Indusind Bank down by 0.69%, Infosys down by 0.36% and Tata Motors - DVR was down by 0.35% were the top losers.

Meanwhile, traders' body Confederation of All India Traders (CAIT) has urged the government not to accede to e-commerce players' demand for changes or delayed implementation of revised foreign direct investment (FDI) norms for e-commerce. It warned that any move to amend the policy will be opposed by the trading community ‘tooth and nail’ and demanded a probe into the business activities of large e-commerce players. It said 'we want the government to institute a probe into the business activities of major e-commerce players over the last two-three years. Those found violating the policy should be strongly punished.”

According to CAIT, another provision states that the inventory of a vendor will be seen as controlled by a marketplace if over 25 per cent of the vendor's purchases are from the marketplace entity, including the latter's wholesale unit. It also said that some large online marketplaces have favoured an extension of the February 1 deadline for the new and tighter rules. It demanded that a comprehensive e-commerce policy be brought about at the earliest, and underlined the need for an effective regulator, that is armed with enforcement and adjudicatory powers to enforce e-commerce policy.

It further said that restrictions imposed in FDI policy in e-commerce should also be made applicable on domestic e-commerce players to ensure a level playing field and fair competition. It also demanded that the government should make it mandatory for the e-commerce companies to obtain compliance certificate by March 31, 2019 and the companies that has not complied should be restricted from operating their e-commerce portals.

The CNX Nifty is currently trading at 10915.65, up by 25.35 points or 0.23% after trading in a range of 10899.55 and 10929.25. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were HPCL up by 2.04%, Bharti Infratel up by 1.60%, Indian Oil Corporation up by 1.55%, GAIL India up by 1.51% and Mahindra & Mahindra was up by 1.20%. On the flip side, Yes Bank down by 2.52%, Zee Entertainment down by 1.71%, Bajaj Finance down by 1.08%, Hindalco down by 1.06% and Eicher Motors was down by 0.86% were the top losers.

Asian market were trading mostly in green, KOSPI rose 2.27 points or 0.11% to 2,108.37, Jakarta Composite soared 31.50 points or 0.49% to 6,444.86, Hang Seng increased 24.93 points or 0.09% to 26,927.03, Taiwan Weighted strengthened 27.14 points or 0.28% to 9,790.95 and Shanghai Composite was up by 8.03 points or 0.31% to 2,578.45.

On the flip side, Straits Times trembled 7.35 points or 0.23% to 3,221.76 and Nikkei 225 was down by 65.26 points or 0.32% to 20,377.49.
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