Key benchmark indices were trading higher in early trade. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 90.70 points or 0.23% at 39,592.75. The Nifty 50 index was up 14.25 points or 0.12% at 11,875.35.
Among secondary barometers,the BSE Mid-Cap index was up 0.20%. The BSE Small-Cap index was up 0.11%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 600 shares rose and 375 shares fell. A total of 36 shares were unchanged.
Overseas, Asian shares were mixed. Investors continue to watch for developments on the US-China trade front, with Beijing making threats this week.
The biggest Chinese newspaper warned the US on Wednesday that China would cut off rare earth minerals as a countermeasure in the escalated trade battle. China's threat came after President Donald Trump blacklisted Chinese telecom giant Huawei, which led to many chipmakers and internet companies cutting ties with the company.
US stocks fell on Wednesday as bond yields declined again, triggering concerns about the economic outlook. Increasing trade tensions in the China-US trade fight also weighed on markets.
The 10-year Treasury note yield fell to its lowest level since September 2017 before rebounding to about 2.26%. A yield curve inversion is seen by traders as a potential sign that a recession is in the horizon.
Back home, Power Grid Corporation of India was up 1.50%. The company's net profit rose 51.91% to Rs 3053.96 crore on 18.66% rise in total income to Rs 9610.24 crore in Q4 March 2019 over Q4 March 2018. The announcement was made after market hours yesterday, 29 May 2019.
United Spirits was down 0.81%. The company's net profit dropped 40.19% to Rs 126.20 crore on 2.99% fall in total income to Rs 2261.90 crore in Q4 March 2019 over Q4 March 2018. The announcement was made after market hours yesterday, 29 May 2019.
Bharat Electronics was up 2.46%. The company's net profit rose 19.67% to Rs 668.62 crore on 9.97% rise in total income to Rs 4013.43 crore in Q4 March 2019 over Q4 March 2018. The announcement was made after market hours yesterday, 29 May 2019.
Adani Power was up 4.13%. The company reported consolidated net profit of Rs 634.64 crore in Q4 March 2019 as compared to net loss of Rs 653.25 in Q4 March 2018. Total income jumped 94.12% to Rs 8077.89 crore in Q4 March 2019 over Q4 March 2018. The announcement was made after market hours yesterday, 29 May 2019.
Nava Bharat Ventures was down 6.82%. The company's consolidated net profit rose 556.44% to Rs 129.91 crore on 42.15% rise in total income to Rs 847.18 crore in Q4 March 2019 over Q4 March 2018. The announcement was made after market hours yesterday, 29 May 2019.
On the economic front, the Reserve Bank of India (RBI) on Wednesday said it constituted a committee on the development of housing finance securitisation market. The mortgage securitisation market in India is primarily dominated by direct assignments among a limited set of market participants on account of various structural factors impacting both the demand and the supply side, as well as certain prudential, legal, tax and accounting issues.
The six-member committee on the development of housing finance securitisation market, headed by Bain & Co Senior Advisor Harsh Vardhan, has been asked to review the existing state of mortgage backed securitisation in India, including the regulations currently in place, and to make specific recommendations on suitably aligning the same with international norms. The panel would also suggest specific measures for facilitating secondary market trading in mortgage securitisation instruments, such as broadening investor base, and strengthening market infrastructure.
Further, RBI constituted a task force on the development of secondary market for corporate loans and appointed T N Manoharan, chairman, Canara Bank as chairperson of the task force. The task force will review existing state of the market for loan sale or transfer in India as well as the international experience in loan trading. It will also make recommendations on policy or regulatory interventions for development of secondary market in corporate loans, among other things. The task force shall submit its report by the end of August 2019.
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