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Sensex, Nifty back in green
Jan-17-2019

After slipping below their neutral lines, key Indian bourses came back in green terrain during late afternoon session. Traders were getting relief, as the government simplified process for seeking income tax exemption by startups on investments from angel funds and prescribed a 45-day deadline for a decision on such applications. Gains led by Consumer Durables, Oil & Gas and Realty helped the indices to recover their losses in late noon deals. However, upper side remained capped, after a US think tank claimed that H-1B workers are ‘vulnerable to abuse’ and frequently placed in ‘poor working conditions’, seeking reforms like a substantial increase in wages to those holding the visa, popular among Indian IT professionals. On the sectoral front, Auto Parts & Equipment industry stocks were trading lower, despite rating agency ICRA’ s report that the domestic auto components industry is expected to grow at around 15 per cent in the next financial year despite a slowdown in demand in the automotive sector. The growth is supported by healthy volume growth in two-wheelers, commercial vehicles and tractor segment until November last year.

On the global front, European markets were trading in red, even though German consumer price inflation eased for a second straight month in December to its lowest level in eight months. The latest figures from the Federal Statistical Office confirmed that the consumer price index rose 1.7 percent year-on-year following a 2.3 percent increase in November. The latest inflation figure was the lowest since April, when price growth was 1.6 percent, same as in March. Further, Britain's annual inflation dropped 2.1 percent in December, the least in almost two years, from 2.3 percent in November. Asian markets were trading in red, on worries about a likely increase in US-China tensions after reports suggested the US Justice Department is pursuing criminal charges against Chinese tech giant Huawei for alleged trade secrets theft. US authorities are in the advanced stages of a criminal probe that could result in an indictment of Huawei.

The BSE Sensex is currently trading at 36387.25, up by 65.96 points or 0.18% after trading in a range of 36170.80 and 36468.42. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.21%, while Small cap index was down by 0.19%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.92%, Oil & Gas up by 0.81%, Realty up by 0.62%, Telecom up by 0.44% and Energy up by 0.37%, while Healthcare down by 0.51%, Basic Materials down by 0.22%, FMCG down by 0.14%, Metal down by 0.13% and Industrials down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.03%, HCL Tech. up by 1.63%, Mahindra & Mahindra up by 1.44%, Hero MotoCorp up by 1.04% and HDFC up by 0.94%. On the flip side, Sun Pharma down by 3.65%, Yes Bank down by 2.42%, SBI down by 1.49%, Tata Motors - DVR down by 1.11% and Bajaj Finance down by 1.09% were the top losers.

Meanwhile, the credit rating agency, ICRA in its latest report has expressed confidence that mid-sized construction players are likely to see significant growth opportunities, with improving credit profiles and strengthening order book aided by the government's push towards infrastructure development projects.

As per report, though the general elections in 2019 can result in some short-term disruptions in the awards, the trend is expected to remain positive over the medium-term. The rating agency further highlighted growth of the infrastructure capital outlay during the last 3-4 years, particularly in the roads, railways and the urban infrastructure segments and added that this is likely to continue over the medium-term.

Besides, ICRA noted that in comparison with the credit profile of large construction companies, many mid-sized companies exhibit better coverage ratios because of lower debts in their books. It also said that as the later have been focusing only on the construction business, the requirement is limited to working capital debt and equipment loans.

The CNX Nifty is currently trading at 10911.70, up by 21.40 points or 0.20% after trading in a range of 10844.65 and 10929.25. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 2.15%, Bharti Infratel up by 2.03%, BPCL up by 1.99%, HPCL up by 1.79% and HCL Tech. up by 1.64%. On the flip side, Sun Pharma down by 3.70%, Zee Entertainment down by 3.09%, Yes Bank down by 2.35%, Eicher Motors down by 1.91% and SBI down by 1.35% were the top losers.

Asian markets were trading mostly in red; Shanghai Composite declined 10.78 points or 0.42% to 2,559.64, Straits Times trembled 16.27 points or 0.50% to 3,212.84, Nikkei 225 slipped 40.48 points or 0.2% to 20,402.27 and Hang Seng decreased 124.58 points or 0.46% to 26,777.52. On the flip side, KOSPI rose 0.96 points or 0.05% to 2,107.06, Jakarta Composite soared 10.46 points or 0.16% to 6,423.82 and Taiwan Weighted was up by 25.34 points or 0.26% to 9,789.15.

All European markets were trading in red; France’s CAC lost 18.22 points or 0.38% to 4,792.52, Germany’s DAX fell 69.98 points or 0.64% to 10,861.26 and UK’s FTSE 100 was down by 24.73 points or 0.36% to 6,837.95.
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