Indian equity benchmarks cut all of their losses in late morning deals to turn positive. Both Sensex and Nifty were trading in green terrain, despite negative cues from other Asian markets. The street was seen taking a note of reports that markets regulator Sebi has notified new regulations for portfolio managers, investment advisers and research analysts with regard to their qualifications. The move will help recognise ‘the post graduate programme in securities market of not less than one year offered by NISM’ as eligible qualification for portfolio managers, investment advisers and research analysts.
On the global front, Asian markets were trading mostly in red, even after overall consumer prices in Japan were down 0.4 percent on year in February, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and up from -0.6 percent in January. Core CPI, which exclude volatile food costs, also was down an annual 0.4 percent. That also matched expectations and was up from -0.6 percent in the previous month. Individually, prices were higher for housing, furniture and clothing. They were down for fuel, medical care, communication, education and recreation.
The BSE Sensex is currently trading at 49306.99, up by 90.47 points or 0.18% after trading in a range of 48586.93 and 49537.70. There were 14 stocks advancing against 16 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index was down by 0.09%, while Small cap index was down by 0.84%.
The top gaining sectoral indices on the BSE were Power up by 1.45%, Utilities up by 1.37%, FMCG up by 0.98%, Energy up by 0.46% and Telecom up by 0.41%, while Realty down by 2.01%, Capital Goods down by 1.08%, Industrials down by 1.04%, Auto down by 1.02% and Consumer discretionary down by 0.80% were the top losing indices on BSE.
The top gainers on the Sensex were Power Grid up by 3.62%, NTPC up by 2.94%, Hindustan Unilever up by 1.59%, ITC up by 1.56% and HCL Tech. up by 1.24%. On the flip side, Larsen & Toubro down by 2.03%, Bajaj Finance down by 1.66%, Maruti Suzuki down by 1.46%, Mahindra & Mahindra down by 1.18% and ONGC down by 0.73% were the top losers.
Meanwhile, Union minister Nitin Gadkari has said the vehicle scrapping policy will be a ‘win-win’ policy that will help improve fuel efficiency and reduce pollution. The Road Transport, Highways and MSMEs Minister said the policy will also lead to an increase in the country's automobile industry turnover to Rs 10 lakh crore from the current Rs 4.5 lakh crore. Announced in the 2021-22 Union Budget, the policy provides for fitness test after 20 years for personal vehicles, while commercial vehicles would require it after the completion of 15 years.
Gadkari has also issued an advisory to automakers, advising them to provide an incentive of a five per cent rebate for those buying a new vehicle after producing a scrapping certificate. Noting that the policy will be a ‘win-win’ policy, the minister said it will help improve fuel efficiency, reduce pollution and GST income will also rise due to the purchase of new vehicles. According to him, the policy is aimed at reducing the population of old and defective vehicles, bringing down vehicular air pollutants, improving road and vehicular safety. Besides, it will help in achieving better fuel efficiency, formalising the informal vehicle scrapping industry, and boost the availability of low-cost raw materials for the automotive, steel and electronics industry. With the scrapping of old vehicles, raw materials such as plastic, copper, aluminium, steel and rubber will be recycled. This will bring down the cost component and help the industry become more cost-competitive.
The minister said that there are 51 lakh light motor vehicles that are older than 20 years and 34 lakh light motor vehicles that are older than 15 years. Around 17 lakh medium and heavy commercial vehicles are older than 15 years without a valid fitness certificate, he said, adding that older vehicles pollute the environment 10 to 12 times more than fit vehicles. A vehicle failing the fitness test or failing to get a renewal of its registration certificate may be declared as End of Life Vehicle. The ministry has proposed that commercial vehicles be de-registered after 15 years in case of failure to get the fitness certificate. Another proposal is that private vehicles be de-registered after 20 years if found unfit or in case of a failure to renew the registration certificate. The ministry will promote the setting up of Registered Vehicle Scrapping Facility (RVSF) and will encourage public and private participation in opening such centres.
The CNX Nifty is currently trading at 14559.05, up by 1.20 points or 0.01% after trading in a range of 14350.10 and 14642.80. There were 20 stocks advancing against 30 stocks declining on the index.
The top gainers on Nifty were Power Grid up by 3.62%, NTPC up by 2.79%, Hindustan Unilever up by 1.55%, ITC up by 1.31% and HCL Tech. up by 1.28%. On the flip side, Tata Motors down by 2.28%, Larsen & Toubro down by 1.91%, Bajaj Finance down by 1.75%, Shree Cement down by 1.66% and Maruti Suzuki down by 1.57% were the top losers.
Asian markets were trading mostly in red; Hang Seng decreased 454.89 points or 1.55% to 28,950.83, Nikkei 225 slipped 363.99 points or 1.2% to 29,852.76, Taiwan Weighted dropped 179.08 points or 1.1% to 16,108.76, Shanghai Composite declined 36.16 points or 1.04% to 3,426.91, Jakarta Composite lost 25.27 points or 0.4% to 6,322.56 and KOSPI fell 18.08 points or 0.59% to 3,047.93. On the flip side, Straits Times advanced 10.13 points or 0.32% to 3,147.79.