Markets stage splendid performance on firm global cues

Boisterous benchmarks showcased an enthusiastic performance on Monday, by rallying around two percentage points amid strong global cues. Sentiments remained up-beat since start as key bourses opened with decent gains and there appeared not even an iota of profit booking in the session as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong stocks. Frontline indices not only ended the session near intraday high levels but also recaptured their crucial 8,450 (Nifty) and 27,950 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments remained jubilant on reports that 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. Some support also came in with reports that 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.

Global markets too supported the sentiment with European counters making a positive start, tracking Friday’s surge in the US tech sector, helped equities bounce back from losses last week, although Athens’ stock market was down on concern about whether the country will be able to reach agreement with its creditors. Asian markets rallied buoyed by stimulus hopes to boost China’s economy, but the euro slipped on more concern about Greece’s finances.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Rally in banking counters too aided the sentiments after Reserve Bank of India (RBI) proposed to lower the ceiling on how much a bank can lend to a single corporate group, in a move to curb risks in the banking sector at a time when bad loans are on the rise.

Meanwhile, stocks related to railways too traded jubilantly after a Committee on Traffic Optimization said in its report that freight loading has the potential to grow between 9% to 15% during the next 4 years. Moreover, telecom stocks remained on buyers’ radar on reports telecom service providers may gradually hike call tariffs. Additionally, public sector oil marketing companies (OMCs) edged higher after a 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 NSE’s 50-share broadly followed index Nifty gained by over one hundred and fifty points to end above its psychological 8,450 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by over five hundred and ten points to end above its crucial 27,950 mark. The broader markets too traded jubilantly throughout the session and ended the session with a gain of around two percentage points. The market breadth remained in favour of advances, as there were 2,042 shares on the gaining side against 753 shares on the losing side while 88 shares remain unchanged.

Finally, the BSE Sensex surged by 517.22 points or 1.88% to 27975.86, while the CNX Nifty soared by 150.90 points or 1.81% to 8,492.30.

The BSE Sensex touched a high and a low of 28017.97 and 27624.76, respectively. The BSE Mid cap index was up by 1.93%, while Small cap index was up by 3.40%.

The top gainers on the Sensex were Bharti Airtel up by 3.55%, HDFC up by 3.52%, ONGC up by 3.49%, ITC up by 3.41% and Coal India up by 3.27%. On the flip side, Hindalco down by 1.61%, Tata Power down by 0.73% and Reliance Industries down by 0.17% were the top losers. 

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 losers.

Meanwhile the much-delayed foreign trade policy (FTP) for five years - from 2015 to 2020 is set to be unveiled on April 1. It has been reported that the policy, poised to be 'different' from previous such policies and will emphasise promotion of manufacturing and services exports and strive for greater use of free trade agreements (FTAs). Within manufacturing exports, the government will chart out a strategy to promote the key sectors of engineering products, electronic goods and textile exports.

The policy which has been delayed by almost a year is likely to be incentive-based and reward the high quality, globally-competitive exports. Aiming to streamline export sops, the commerce ministry is likely to consolidate a host of schemes, such as focus market, focus product and market-linked focus product.

The Focus Market Scheme (FMS) aims to offset high freight costs and other externalities to select international markets with a view to enhance India's export competitiveness in these markets. The objective of the Focus Product Scheme (FPS) is to promote exports of products that have a high export intensity and employment potential, so as to offset infrastructural inefficiencies and other associated costs involved in the marketing of these products.

The ministry has stated that the policy was delayed as it had to be in tandem with Prime Minister Narendra Modi's Make in India, Digital India and ease-of-doing-business initiatives and also as last year's Budget wasn't a full-fledged one; it was only for eight months.

The CNX Nifty touched a high and low of 8,504.55 and 8,380.75 respectively.

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 3.84% and ONGC up by 3.71%. On the flip side, Tech Mahindra down by 2.42%, Hindalco Industries down by 1.90%, Cairn India down by 1.55%, Tata Power Company down by 0.27% and Sun Pharmaceuticals Industries down by 0.17% were the top losers.

European Markets were trading in the green; Germany's DAX was up by 1.33%, France's CAC was up by 0.92% and UK's FTSE 100 was up by 0.69%.

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.