Key barometers trimmed gains in morning trade. The undertone of the market was bullish, supported by multiple reforms by the government and positive global cues. The Nifty regained 11,950 level. Auto stocks advanced after FADA data.
At 10:27 IST, the barometer index, the S&P BSE Sensex, was up 121.74 points or 0.3% at 40,534.31. The Nifty 50 index was up 41.55 points or 0.35% at 11,951.70.
The S&P BSE Mid-Cap index was up 0.42%. The S&P BSE Small-Cap index was up 0.27%.
The market breadth was positive. On the BSE, 1022 shares rose and 626 shares fell. A total of 115 shares were unchanged. In Nifty 50 index, 36 stocks advanced while 14 stocks declined.
Economy:
The Union Cabinet, chaired by the Prime Minister Narendra Modi, gave an approval for setting up Infrastructure Investment Trust and monetize National Highway Projects. The Cabinet gave an approval authorizing National Highways Authority of India (NHAI) to set up Infrastructure Investment Trust(s) (InvIT) as per InvIT Guidelines issued by SEBI. This will enable NHAI to monetize completed National Highways that have a toll collection track record of atleast one year and NHAI reserves the right to levy toll on the identified highway. This move will also attract patient capital (for say 20-30 years) to the Indian highway market, as these investors are averse to construction risk and are interested in investment in assets which provide long-term stable returns.
Further, the Cabinet approved the proposal to make amendments in the Insolvency and Bankruptcy Code, 2016 (code), through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019. The amendments aim to remove certain difficulties being faced during insolvency resolution process to realise the objects of the code and to further ease doing of business. Amendments to the Code to remove bottlenecks, streamline the CIRP and protection of last mile funding will boost investment in financially distressed sectors. Additional thresholds introduced for Financial Creditors represented by an authorized representative due to large numbers in order to prevent frivolous triggering of Corporate Insolvency Resolution Process (CIRP).
The Cabinet also approved a partial credit guarantee scheme for public sector banks (PSBs) to purchase high-rated pooled assets from financially sound Non-Banking Financial Companies (NBFCs)/Housing Finance Companies (HFCs), with the amount of overall guarantee provided by government till the first loss of up to 10% of fair value of assets being purchased by banks or Rs 10,000 crore, whichever is lower. The scheme would cover NBFCs/HFCs that may have slipped into SMA-0 category during the one year period prior to 1 August 2018, and asset pools rated "BBB+" or higher.
Politics:
The Rajya Sabha on Wednesday approved the Citizenship (Amendment) Bill, completing the legislative procedure for giving Indian citizenship to non-Muslim migrants from Pakistan, Afghanistan and Bangladesh. The Bill was passed with 125 votes in favour and 105 against it. The Bill was passed by Lok Sabha on Monday. It will now go to the President for his assent.
Buzzing Index:
Shares of auto companies rose after automobile dealers' body FADA on Wednesday said retail sales of passenger vehicles in November increased, driven by festive demand during the month.
The Nifty Auto index traded 0.65% higher at 7,889.40. Tata Motors (up 2.23%), Hero MotoCorp (up 1.3%), Eicher Motors (up 1.28%), Force Motors (up 0.84%), Mahindra & Mahindra (up 0.78%), TVS Motor Company (up 0.77%), Escorts (up 0.74%), Ashok Leyland (up 0.59%), Maruti Suzuki India (up 0.41%), Bajaj Auto (up 0.21%) and SML Isuzu (up 0.13%) advanced.
Vehicle registrations across the country increased by 2% in November year-on-year due to the festive season, the Federation of Automobile Dealers Associations (FADA) said on Wednesday.
Two-wheeler registrations totalled 17.05 lakh last month compared to 16.6 lakh in November last year, marking an increase of 3%. Three-wheeler registrations showed a dramatic jump of 20% with 65,348 registrations in November 2019 compared to 54,639 in the year-ago period.
However, passenger vehicle registrations rose by only 1% to 2.57 lakh from 2.55 lakh in the year-ago period. But commercial vehicles dropped by 8% to 77,394 registrations versus 84,040 in November last year, data released by FADA showed.
That took overall vehicle registrations to 21.05 lakh, up 2% from 20.54 lakh in November 2018.
Stocks in Spotlight:
Shares of Ujjivan Small Finance Bank were trading at Rs 53.85 at 10:22 IST on BSE, a premium of 45.54% over the initial public offer price of Rs 37. The stock debuted at Rs 58, premium of 56.76% to IPO price. So far the stock hit a high of Rs 62.8 and low of Rs 53.1. On BSE, 101.46 lakhs shares were traded on the counter so far.
Shares of Reliance Industries were trading 0.15% higher at Rs 1564.9. RIL announced that its wholly owned subsidiary Reliance Strategic Business Ventures has acquired NowFloats for a cash consideration of Rs 141.63 crore. The said investment represents 85% holding of NowFloats. Nowfloats offers SaaS solutions to Small and Medium Enterprises (SMEs) that enable them to get a digital presence. Other solutions include local content discovery platform, online business management suite, website promotion / marketing solutions, and various other offerings for SMEs. It has operations in India.
Shares of L&T were trading 1.14% higher at Rs 1278. The company won an order from Rail Vikas Nigam (RVNL) for the construction of Rishikesh - Karanprayag Tunnel in the state of Uttarakhand. The company classified the contract size in the range of Rs 1000 - 2500 crore.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
