Markets continue to trade lackluster in absence of fresh positive triggers

Local equity markets continued to trade lackluster in absence of any fresh positive triggers which could heave the barometer gauges higher. Both Sensex and Nifty after getting a muted start and oscillating in a tight range were holding above the crucial 28,850 (Sensex) and 8,750 (Nifty) levels respectively. However, the session was yielding for broader indices, which were trading higher with gains in the range of 0.60-1.05%. Cautiousness ahead of the release of March CPI data mainly was weighing on the sentiment, nevertheless bit of optimism from Feb IIP data released over the weekend prevented sharper slide of local equity markets. On the macro-front, Clocking its fastest pace in nine months, the index for industrial output (IIP) for the month of February came in at 5%, way higher than street expectation of a number of around 3.50% and also higher compared to 2.6% in January mainly on account of splendid growth of capital goods and consumer goods sector.

On the global front, a rally in china’s stock markets to seven year highs on Monday kept an index of Asian shares near its highest level since September, welcoming weak Chinese trade data hardened expectations for more economic stimulus measures from Beijing. The Chinese markets' bull run has been fueled by speculative buying on hopes of fresh steps to boost an economy struggling for momentum, with first quarter gross domestic product data due to be released on Wednesday expected to show 7.0 percent growth.

Closer home, most of the sectoral indices on BSE were trading into positive territory, however exceptions were stocks from Auto, Banking and Oil & Gas counters, which were the top losers.  On the flip side, stocks from Consumer Durables, Realty and Capital Goods counters were the top gainers of the session. Meanwhile, realty stocks too were in demand after leading banks cut interest rates on housing loans. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1512:751; while 95 shares remained unchanged.

The BSE Sensex is currently trading at 28887.98, up by 8.60 points or 0.03% after trading in a range of 28843.94 and 29005.03. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.65%, while Small cap index up by 1.06%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.98%, Realty up by 0.87%, Capital Goods up by 0.70%, INFRA up by 0.46%, FMCG up by 0.43% while, Auto down by 0.58%, Bankex down by 0.23%, Oil & Gas down by 0.03% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.97%, BHEL up by 1.81%, Tata Power up by 1.27%, HDFC up by 1.06% and Sun Pharma Inds. up by 1.06%. On the flip side, GAIL India down by 3.41%, Mahindra & Mahindra down by 1.63%, Hindalco down by 1.38%, Dr. Reddys Lab down by 1.35% and NTPC down by 1.22% were the top losers.

Meanwhile, in an attempt to lure investors from Germany and the rest of the world at the inauguration of Hannover Messe Fair, the world`s biggest industrial fair, Prime Minister Narendra Modi assured of a welcoming business environment in India with a ‘predictable, stable and competitive’ tax regime.

PM also asserted that this government would do all that it requires to remove unnecessary regulations, simplify procedures for ease of conducting business in the country and enabling foreign companies to participate in the ‘Make in India’ programme.

Further, he also highlighted that his country had did its bit to simplify procedures by turning goods and service tax which is a long needed revolution, a ground reality. He also highlighted the country’s incremental use of digital technology to accumulate multiple approvals and endless waits.

PM also highlighted that “Make in India” was not just a brand or simply a slogan and that his ministry had really moved with speed and boldness to fulfill its pledge of creating a stable economic environment railway, which is the thread that binds India and now a fast track for country’s transformation.

The CNX Nifty is currently trading at 8779.65, down by 0.70 points or 0.01% after trading in a range of 8762.10 and 8803.70. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 2.07%, NMDC up by 1.89%, BHEL up by 1.88%, Bharti Airtel up by 1.81% and Tech Mahindra up by 1.60%. On the flip side, GAIL India down by 3.31%, Mahindra & Mahindra down by 2.06%, Hindalco down by 1.38%, Tata Motors down by 1.28% and NTPC down by 1.25% were the top losers.

Asian markets were trading mostly higher; with KOSPI Index trading higher by 9.55 points or 0.46% to 2,097.31; Straits Times trading higher by 9.72 points or 0.28% to 3,482.10; Taiwan Weighted trading higher by 46.92 points or 0.49% to 9,664.62; Shanghai Composite trading higher by 74.45 points or 1.85% to 4,108.76; Hang Seng trading higher by 333.96 points or 1.22% to 27,606.35. On the flip side, Jakarta Composite trading lower by 35.89 points or 0.65% to 5,455.45 and Nikkei 225 trading lower by 4.77 points or 0.02% to 19,902.86.