Post Session: Quick Review

Going from strength to strength, local equity markets staged a splendid comeback after seven consecutive sessions of drubbing and one session of consolidation on incremental bargain buying activities thanks to positive global set up, which lifted both Sensex and Nifty above psychologically crucial 27,950 and 8,450 levels respectively with gains of close to 2% thanks to positive global set-up. Benchmark equity indices right from the start showed optimism and just about went on gaining ground to conclude at day’s highest point. Meanwhile, the session also turned out to be productive for broader indices, which went home with gains in the range of 1.90-3.50%.

Besides, sentiments were also buttressed after global rating agency, Fitch just right ahead of its annual sovereign rating scheduled for next month, in its report underscored that sustained fiscal consolidation, structural reforms and low inflation were positive for the country's ratings. The agency has allocated a 'BBB-'rating for the country with a stable outlook, which is the lowest investment grade rating.

On the global front, Asian markets were buoyant Monday as investors cheered Fed chief Janet Yellen's comments signaling that U.S. interest rates would rise only gradually, with Chinese stocks rising on hopes for more economic stimulus measures. Meanwhile, European equities were higher in morning trade on Monday, as investors looked ahead to forthcoming U.S. jobs data. Investors in Europe and the U.S. are preparing for a shorter week due to the Easter vacation; however the focus will be on non-farm payrolls data from the U.S., which will still be published Friday.

Closer home, with buying being broad-based in nature, all the sectoral indices went home in green, among them stocks from Capital Goods, Realty and PSU counters outperformed. In stock specific activity, PSU OMCs edge higher after steep slide in crude oil prices. Brent crude oil prices fell $56 a barrel on Monday, extending steep losses from the previous session as Iran and six world powers tried to reach a deal that could add oil to the market if sanctions against Tehran are lifted. The overall market breadth on BSE was in the favour of advances which thumped decliners in the ratio of 1990:729; while 80 shares remained unchanged.

The BSE Sensex concluded at 27975.86, up by 517.22 points or 1.88% after trading in a range of 27624.76 and 28017.97. There were 27 stocks advancing against 3 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.93%, while Small cap index up by 3.40%. (Provisional)

The gaining sectoral indices on the BSE were Capital Goods up by 2.82%, Realty up by 2.19%, PSU up by 2.19%, FMCG up by 2.11% and Infrastructure up by 2.03%, while there were no gainers on the index. (Provisional)

The top gainers on the Sensex were ONGC up by 3.91%, HDFC up by 3.64%, Axis Bank up by 3.47%, Bharti Airtel up by 3.32% and Larsen & Toubro up by 3.19%. On the flip side, Hindalco down by 1.31%, Tata Power down by 0.53% and Sun Pharma Inds. down by 0.11% were the top losers. (Provisional)

Meanwhile, in an attempt of luring more foreign inflows into the country, the government is looking at a slew of measures, including liberalizing FDI norms for NRIs and manufacturing firms to sell products through e-commerce portals. With an object to boost 'Make in India' campaign, the ministry would soon seek cabinet nod on permitting Indian manufactures to sell their goods to consumer through e-commerce portals.

Besides, the commerce and industry ministry has also proposed to increase the value of projects to be cleared by the foreign investment promotion board (FIPB) to Rs 3,000 crore  from Rs 1,200 crore earlier.

Additionally, the commerce industry in a bid to improve ease of doing business in the country is contemplating on the proposal of composite cap as this would aid in eliminating ambiguity on application of sectoral caps, conventionalities and approval requirements in different sectors and bring simplification in the foreign investment policy. 

Presently, FDI proposals worth Rs 1,200 crore and below are approved by the FIPB and proposals above this value are required to be approved by the Cabinet Committee on Economic Affairs (CCEA).

In a separate development, the government also may come out with some kind of clarification on single brand retail sector to attract global players. This is since Swedish furniture major IKEA proposes to invest Rs 10,500 crore for setting up single brand retail stores in the country. Notably, the government so far has already relaxed overseas investment norms for sectors including railways, defence, construction and medical devices.

India VIX, a gauge for markets short term expectation of volatility declined 4.36% at 14.50 from its previous close of 15.16 on Thursday. (Provisional)

The CNX Nifty settled at 8492.30, up by 150.90 points or 1.81% after trading in a range of 8380.75 and 8504.55. There were 44 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Idea Cellular up by 7.43%, Ultratech Cement up by 5.50%, NMDC up by 4.03%, Asian Paints up by 3.77% and HDFC up by 3.44%. On the flip side, Tech Mahindra down by 2.42%, Hindalco down by 2.09%, Cairn India down by 1.55%, Tata Power down by 0.73% and Reliance Industries down by 0.12% were the top losers. (Provisional)

European Markets were trading in the green; Germany's DAX surged 1.40%, France's CAC gained 0.95% and UK's FTSE 100 was up by 0.45%.

The Asian markets closed in green on Monday, with Chinese stocks touching seven year high, as gains in the Real Estate Investments & Services, Oil Equipment Services & Distribution and Life Insurance sectors led shares higher. Bank of Japan Governor Haruhiko Kuroda’s optimism that he can meet a 2 percent inflation target is getting a reality check at the nation’s cash registers. A report showed gains in consumer prices excluding fresh food slowed for a seventh month in February to a one-year low. The cost of cereals, household durable goods and rents fell last month from a year ago. Japan’s bond market is also betting that Kuroda won’t be able to meet his inflation goal during the fiscal year starting April. Japan’s industrial production fell to a seasonally adjusted -3.4%, from 3.7% in the preceding month. Thai Industrial Production rose to a seasonally adjusted 3.55%, from -1.31% in the preceding month.