Indian stock markets on Friday was trading marginally higher tracking gains in banking and auto stocks.

At 12.01pm, the benchmark Sensex was up 0.17% or 64.23 points higher at 41743.22 points while Nifty was up 0.19% or 28.15 points at 12287.85 points.

Brokerage firm IIFL Securities expects some more leg up as mid-caps may join the party.

Public sector banking stocks gained as the 10-year government bond yield fell over 13 basis points after Reserve Bank of India announced plans to conduct a simultaneous sale and purchase of bonds.

Corporation Bank, Union Bank of India, Syndicate Bank, Indian Bank, Oriental Bank of Commerce, State Bank of India, Canara Bank, Allahabad Bank, Bank of Baroda, Punjab National Bank gained 1-4%.

Auto stocks gained as Federation of Automobile Dealers Associations, a representative group of automobile dealers, approached the Supreme Court to allow automobile dealers to sell and register vehicles compliant with Bharat Stage 4 or BS IV emission norms, even after the more stringent BS-VI norms come into effect on 1 April. Hero MotoCorp, Ashok Leyland, Tata Motors, TVS Motors, Maruti Suzuki India, and Bajaj Auto were up 0.4-1.3%

"After operating in a tough environment over the last 15 months, the auto industry now faces the last hurdle of BS6 transition, post which it will likely be ‘business as usual’ from 2HFY21, in our view. With the demand environment showing signs of stability and inventory under control, the BS6 transition is likely to be less problematic (unlike BS4)" said Motilal Oswal Securities in a note to its investors.

"We believe that the BS6 transition would pose a bigger challenge for 2Ws than CVs and PVs given the magnitude of cost inflation, the possibility of a change in competitive positioning and the scope of value migration. We expect some pre-buying in 2Ws and diesel PVs, but limited pre-buy in CVs due to 30-40% excess capacity with fleet operators", the report added.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said "Going ahead, market would continue to track global news flows and pre-budget developments. Near term momentum could continue on the back of strong liquidity flows."

NMDC gained nearly 22% in last tree weeks. The stock has gaining after it the Ministry of Coal allocated to coal blocks in Jharkhand State. The Rohne coal block has extractable reserves of 191 million tonne and planned production capacity of 8 million tonne per annum.

Bharat Heavy Electricials Ltd fell 1.6% after brokerage firm Morgan Stanley has cut its target price to 37 from 46 earlier. The brokerage firm has maintained its underweight stance on the script.

Asian indices opened flat as markets digested the best week of the year till now with most global indices hitting all-time.

Close