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Local equities continue to trade in green
Feb-20-2019

Local equity benchmarks continued their trade in positive territory in morning session, with Sensex and Nifty trading above their crucial 35,500 and 10,650 levels, respectively. Buoyant Mid-caps and Small-caps elevated over half a percent gains on their respective front line stocks. Sentiments remained optimistic as the Cabinet approved a new electronics policy which aims to create a $400 billion electronic manufacturing ecosystem by 2025 and generate 1 crore jobs in the country. The National Electronics Policy 2019 proposes to boost mobile manufacturing in the country to 1 billion units worth $190 billion of which 600 million units worth $110 billion will be exported from the country. Sentiment on the street also improved on the government's statement that the revised Gross Domestic Product (GDP) figures for the demonetisation year was not cooked up and, in fact, the growth rates are likely to go up further due to the GST. Traders ignored a private report stating that Primary Consumer Sentiment Index (PCSI) saw a downward slide, a drop by 0.9%, in consumer confidence February. Rising inflation, low liquidity and jobs scarcity has led to a fall in consumer confidence in February.

On the global front, Asian markets were trading mostly in green, following the gains on Wall Street after US President Donald Trump said the US-China trade talks are ‘going very well’ and once again hinted that an early March deadline to reach a deal could be postponed. Back home, Care Ratings reported that corporate bond issuances by them have increased by 30 percent in the month of January 2019, reflecting renewed confidence among both issuers as well as investors. It noted that NBFCs are the biggest issuers of debt in the corporate bond market, controlling nearly 90 percent of the volume.

The BSE Sensex is currently trading at 35577.55, up by 224.94 points or 0.64% after trading in a range of 35519.80 and 35653.14. There were 26 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.60%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Metal up by 2.33%, Basic Materials up by 1.60%, Oil & Gas up by 1.37%, Energy up by 1.32% and PSU was up by 1.12%, while there were no losers on the sectoral front.

The top gainers on the Sensex were Vedanta up by 3.17%, Tata Steel up by 2.83%, Yes Bank up by 1.65%, ONGC up by 1.62% and Tata Motors was up by 1.56%. On the flip side, Bajaj Auto down by 1.26%, Hero MotoCorp down by 0.72%, HCL Tech. down by 0.52%, Mahindra & Mahindra down by 0.30% and Hindustan Unilever was down by 0.18% were the top losers.

Meanwhile, with an aim to increase electronic manufacturing ecosystem in country, the government has approved a new National Electronic Policy 2019.  The objective of new electronics policy is to create a $400 billion electronic manufacturing ecosystem by 2025 and generate 1 crore jobs in the country. The Policy also aims at promoting ease-of-doing business for the electronic system design and manufacturing (ESDM) sector, and also encouraging industry-led research and development and innovation in all sub-sectors of electronics.

Moreover, it aims to push the startup ecosystem in emerging technology areas, such as 5G, IoT, artificial intelligence and machine learning, and their applications in areas like defence, agriculture, health, smart cities and automation. The electronics production growth rate was 5.5% in 2015. In 2017-18, it rose to 26.7%. In 2012-13, India's share in global electronics production was 1.31% and has gone up to 3%.

Besides, the Policy 2019 proposes to boost mobile manufacturing in the country to 1 billion units worth $190 billion (about Rs 13 lakh crore) of which 600 million units worth $110 billion (about Rs 7 lakh crore) will be exported from the country.

The CNX Nifty is currently trading at 10671.20, up by 66.85 points or 0.63% after trading in a range of 10653.60 and 10697.35. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 3.19%, Vedanta up by 3.10%, Tata Steel up by 2.82%, JSW Steel up by 2.44% and BPCL was up by 2.31%. On the flip side, Bajaj Auto down by 1.54%, Dr. Reddy’s Lab down by 0.66%, Hero MotoCorp down by 0.60%, Bharti Infratel down by 0.50% and Bajaj Finserv was down by 0.49% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 178.52 points or 0.63% to 28,406.65, Taiwan Weighted strengthened 87.13 points or 0.86% to 10,239.39, Nikkei 225 surged 95.37 points or 0.45% to 21,398.02, KOSPI rose 18.10 points or 0.82% to 2,223.73 and Straits Times advanced 10.39 points or 0.32% to 3,270.19.

On the other side, Jakarta Composite dropped 5.25 points or 0.08% to 6,489.42 and Shanghai Composite was down by 4.20 points or 0.15% to 2,751.45.
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