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Firm trade continues on Dalal Street
Jun-02-2020
Firm trade continued over the Dalal Street in late morning deals, on account of positive cues from other Asian markets. In line with the larger peers, the broader indices were too holding notable gains, while Kotak Mahindra Bank gained the most among all major industry leaders on the BSE. Positive trade persisted also on the back of heavy buying at Realty and Telecom counters. Traders were getting relief, as Prime Minister Narendra Modi said India will definitely get its economic growth back as the government continues to pursue various reforms. He said the government has taken tough steps to fight the coronavirus pandemic and has also taken care of the economy.

On the global front, Asian markets were trading in green, after the manufacturing sector in Indonesia continued to contract in May, albeit at a lightly slower pace, with a manufacturing PMI score of 28.6. That's up from the record low of 27.5 in April, but it remains substantially beneath the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex is currently trading at 33527.98, up by 224.46 points or 0.67% after trading in a range of 33301.29 and 33675.93. There were 21 stocks advancing against 9 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 1.59%.

The top gaining sectoral indices on the BSE were Realty up by 2.13%, Telecom up by 1.68%, Consumer Durables up by 1.38%, Healthcare up by 1.34% and Industrials up by 1.08%, while Metal down by 0.61%, PSU down by 0.48% and Oil & Gas down by 0.32% were the few losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 4.86%, Bajaj Finance up by 4.03%, Sun Pharma up by 2.67%, Power Grid up by 2.08% and Indusind Bank up by 1.71%. On the flip side, Maruti Suzuki down by 1.26%, SBI down by 1.21%, ONGC down by 1.13%, NTPC down by 0.87% and Nestle was down by 0.48% were the top losers.

Meanwhile, in line with government’s top focus on energising micro, small and medium enterprises (MSMEs) in the country, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, has approved provisioning of Rs 20,000 crore as subordinate debt to provide equity support to stressed MSMEs and proposed equity infusion of Rs 50,000 crore for units through a Fund of Funds as part of the roadmap to implement the package announced for the sector.

The CCEA has decided for further upward revision of MSME definition. It cleared enhancing the turnover limit for classifying units as medium units to Rs 250 crore from Rs 100 crore announced last month along with the package for the sector.

MSME Minister Nitin Gadkari has said that the approval for provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs will benefit 2 lakh such MSMEs. Besides, he said equity infusion of Rs 50,000 crore for MSMEs through Fund of Funds will establish a framework to help MSMEs in capacity augmentation and also provide an opportunity to them to get listed in stock exchanges. He also said a fund of funds with corpus of Rs 10,000 crore will be set up, which will be operated through a mother fund and few daughter funds. He noted that the fund structure will help leverage Rs 50,000 crore of funds at daughter funds level. He hopes this revolving fund will multiply in value terms significantly in the coming years.

The CNX Nifty is currently trading at 9892.50, up by 66.35 points or 0.68% after trading in a range of 9824.05 and 9935.55. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 5.30%, Kotak Mahindra Bank up by 4.88%, Bajaj Finance up by 4.03%, Bajaj Finserv up by 3.19% and Adani Ports & SEZ up by 2.79%. On the flip side, Coal India down by 3.50%, ONGC down by 1.43%, Maruti Suzuki down by 1.41%, BPCL down by 1.37% and Indian Oil Corporation down by 1.33% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 261.44 points or 1.19% to 22,323.83, Straits Times jumped 31.16 points or 1.22% to 2,582.02, Hang Seng rose 90.51 points or 0.38% to 23,823.03, Taiwan Weighted gained 51.74 points or 0.47% to 11,130.76, KOSPI soared 16.92 points or 0.82% to 2,082.00 and Jakarta Composite climbed 113.03 points or 2.38% to 4,866.64, while Shanghai Composite was down by 3.34 points or 0.11% to 2,912.09.
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