Key benchmarks firmed up once again and traded with modest gains in mid-morning trade. The Nifty traded a tad above 10,850 and it struggled to regain 10900 level. The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 4.55% at 18.1375. The Nifty India VIX is above 18 for the first time since 23 May 2019.
At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 118.78 points or 0.32% at 36,819.82. The Nifty 50 index was up 27.65 points or 0.026% at 10,857.
The S&P BSE Mid-Cap index was up 0.3%. The S&P BSE Small-Cap index was up 0.53%.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1198 shares rose and 810 shares fell. A total of 104 shares were unchanged.
Finance Minister Nirmala Sitharaman after market hours on Friday, 23 August 2019, said the government decided to withdraw the surcharge on foreign portfolio investors (FPIs), which she had unveiled in her budget for the fiscal year ending March 2020. FM also announced a slew of measures to revive economy to arrest the ongoing economic slowdown in the economy.
To support to non-banking financial companies (NBFCs) and housing finance companies (HFCs), FM announced more credit support for purchase of houses, vehicles, consumption goods. As part of the measures, the government announced additional liquidity support to HFCs Rs 20,000 crore by National Housing Bank (NHB) thereby increasing it to Rs 30,000 crore. FM also announced partial credit guarantee scheme for purchase of pooled assets of NBFCs/HFCs upto Rs 1 lakh crore - to be monitored at highest level in each bank. NBFCs are now permitted to use the Aadhaar authenticated bank know your customer (KYC) to avoid repeated processes. Necessary changes will be made in Prevention of Money Laundering Act (PMLA) rules and Aadhaar regulations.
Among non-banking financial companies (NBFCs), Edelweiss Financial Services (up 4.02%), Mahindra & Mahindra Financial Services (up 3.64%), Muthoot Capital Services (up 2.49%), Indiabulls Housing Finance (up 2.34%), Cholamandalam Investment and Finance Company (up 1.95%), Shriram Transport Finance Corporation (up 1.87%), Bajaj Finance (up 1.81%), Bajaj Finserv (up 1.79%), IIFL Holdings (up 1.61%), Muthoot Finance (up 1.61%) and LIC Housing Finance (up 0.64%) advanced.
Manappuram Finance was up 1.79% after company's subsidiary, Asirvad Microfinance, reached a Rs 1000 crore milestone in Asset Under Management (AUM). The company stated that it was accomplished by disbursing microfinance loans to over 4,50,000 women members. Asirvad Microfinance commenced operations in Tamil Nadu in 2008 and completed a decade of operations last year.
Larsen & Toubro gained 1.17% after the company said it received a 'significant' order from NTPC. The company announced that it has bagged an engineering, procurement and construction (EPC) for setting up Flue Gas Desulphurisation (FGD) system at Vindhyachal Super Thermal Power Station for Stage 1 (6x210 MW) and Stage 2 (2x500 MW) in Madhya Pradesh.
Unichem Laboratories declined 1.53% after the company's Ghaziabad formulation facility received one observation from USFDA. The inspection was conducted between 19 August 2019 and 23 August 2019. The company assured that it will provide the response and corrective action plan within next 15 working days to address the USFDA observation.
Piramal Enterprises was up 3.12% after the company said its board will consider issuing secured non-convertible debentures on 28 August 2019. The company announced after trading hours on Friday, 23 August 2019, that a committee of the board will meet on Wednesday, 28 August 2019, to consider issuing secured non-convertible debentures ('NCDs') worth Rs 500 crore on private placement basis. The issue will carry an over-subscription option of Rs 2500 crore.
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