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Key indices add gains amid firm global cues
Feb-19-2020

Indian equity markets extended their gains in afternoon session on fresh buying by investors, amid a firm trend in Asian markets. Sentiments remained up-beat with private report stating that after a substantial drop in January, consumer sentiment saw a recovery in February across the four indices of jobs, economy, personal investment, and personal finances. The consumer confidence of urban Indian sees which dropped 7.3 percentage points in January recovered by 2.5 percentage points in February. Additional support came with Finance Minister Nirmala Sitharaman’s statement that the government will soon announce measures to deal with the impact of Coronavirus outbreak on the domestic industry. Besides, Indian business leaders are demanding cuts in import duties on antibiotic drugs, mobile parts and other items as the outbreak of the coronavirus has disrupted supplies from China. On the sectoral front, Agriculture sector remained in focus after latest government data showed India is set to harvest a record 106.21 million tonne wheat in 2019-20 crop year on increase in acreage owing to good rains. Wheat production has been rising year-on-year and the previous record of 103.60 million tonne was achieved during 2018-19 crop year (July-June).  

On the global front, Asian markets were trading mostly in green, as investors tried to shake off worries about the coronavirus epidemic after a slight decline in the number of new cases. Back home, the BSE Sensex is currently trading at 41184.80, up by 290.42 points or 0.71% after trading in a range of 41048.93 and 41309.67. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.92%, while Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were Energy up by 2.11%, Healthcare up by 1.95%, Metal up by 1.67%, Telecom up by 1.38% and Oil & Gas up by 1.17%, while Auto down by 0.40% and Realty down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.53%, Bajaj Finance up by 1.87%, Nestle up by 1.82%, Hindustan Unilever up by 1.81% and NTPC up by 1.64%. On the flip side, Sun Pharma down by 0.99%, Maruti Suzuki down by 0.84%, Indusind Bank down by 0.59%, Larsen & Toubro down by 0.45% and Power Grid down by 0.35% were the top losers.

Meanwhile, Union Coal and Mines Minister Pralhad Joshi has said that the government is looking to stop the substitutable import of thermal coal from 2023-24. He also said the government wants to bridge the substitutable shortfall by 2023-24 and it may conduct an auction of 100 fully explored blocks.

Joshi has stated that the government had recently approved the amendments which intend to open up new areas of growth in the coal and mining sector. He noted that the latest move in the coal sector is expected to create an efficient energy market, thereby bringing more competition, while reducing coal imports. 

Stressing upon the diversification in the coal sector, the minister said that Coal India (CIL) could think of coming up with the art of pithead thermal power plants to transform it into an integrated company. He said it was also proposed that CIL could generate 5GW of solar power by 2023-24 and could diversify into coal gasification with a target of 5 million tonnes by 2030 enabling a sustainable energy mix for the country.

The CNX Nifty is currently trading at 12092.60, up by 100.10 points or 0.83% after trading in a range of 12042.10 and 12118.90. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 6.57%, Zee Entertainment up by 3.16%, Coal India up by 3.05%, Reliance Industries up by 2.52% and Vedanta up by 2.45%. On the flip side, Tata Motors down by 2.72%, Yes Bank down by 1.43%, Sun Pharma down by 0.98%, Maruti Suzuki down by 0.96% and Indusind Bank down by 0.61% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 206.90 points or 0.89% to 23,400.70, Taiwan Weighted strengthened 109.86 points or 0.94% to 11,758.84, Hang Seng increased 109.63 points or 0.4% to 27,639.83, Jakarta Composite soared 29.77 points or 0.51% to 5,916.73, Straits Times advanced 18.07 points or 0.57% to 3,214.70 and KOSPI rose 1.46 points or 0.07% to 2,210.34.

On the flip side, Shanghai Composite declined 7.63 points or 0.26% to 2,977.34.

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