Post Session: Quick Review

Extending jubilation for third straight session, boisterous benchmarks showcased an enthusiastic performance on Thursday, by rallying around one and a half percentage points as investor sentiment improved after the government stuck to its fiscal deficit target for the next financial year, raising hopes the central bank would soon cut key policy rates. Sentiments remained up-beat since start as key bourses opened with huge gap on the up-side 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 7,450 (Nifty) and 24,600 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments remained buoyed with the International Monetary Fund (IMF) projecting a robust growth rate of 7.3 percent for the country this fiscal, picking up to 7.5 percent next year. IMF has welcomed recent measures proposed in budget, aimed at increasing public infrastructure spending, rationalising subsidies, creating more flexible labour and product markets as well as enhancing financial inclusion. Traders shrugged off weak services PMI data. Growth in India's services firms fell to a three-month low of 51.4 in February from 54.3 in January, as output rose only marginally. The seasonally adjusted Nikkei/Markit Services Purchasing Managers’ Index (PMI) had experienced a 19 month high rate of growth in January, marking a seventh month above the 50-level that separates growth from contraction.

On the global front, Asian ended mostly higher for third straight session on Thursday as upbeat data on US jobs and a rally in a range of commodities whetted risk appetites globally. However, European markets were trading mostly in red in early deals as investors paused for breath after a rally in equities over the past few days.

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. Appreciation in Indian rupee too aided sentiments. Hardening for the fifth consecutive day, the rupee appreciated another 19 paise to trade at a 7-week high of 67.36 against the dollar at the time of equity markets closing on sustained bouts of selling of the US currency by banks and exporters amid foreign capital inflows. Meanwhile, foreign investors bought a net $442.68 million worth of Indian shares on March 1, paring this year’s outflow to $2.43 billion.

Buying in power stocks too aided sentiments after a report compiled by WEF ranked India at the 90th place in a list of 126 countries, on the basis of their ability to deliver secure, affordable and sustainable energy. Shares of metal companies remained in focus after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), hit nearly four-month high on March 2, 2016. The railways stocks continued to trade higher for yet another day after the Cabinet approved a cooperation pact between railways and Japan.

The NSE’s 50-share broadly followed index -- Nifty -- rose by over one hundred points to end above the psychological 7,450 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex -- surged by over three hundred and sixty points to finish above the psychological 24,600 mark. Broader markets too traded with traction and ended the session with a gain of around a percent.

The market breadth remained in favor of advances, as there were 1,724 shares on the gaining side against 910 shares on the losing side while 146 shares remain unchanged. (Provisional)

The BSE Sensex ended at 24606.99, up by 364.01 points or 1.50% after trading in a range of 24383.28 and 24640.51. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.58%, while Small cap index up by 1.35%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 4.12%, Metal up by 4.05%, Industrials up by 3.42%, Basic Materials up by 2.55% and Auto up by 2.08%, while FMCG down by 0.20% was the lone losing index on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 7.34%, Larsen & Toubro up by 6.35%, Tata Motors up by 6.01%, BHEL up by 5.91% and Dr. Reddys Lab up by 5.36%. On the flip side, ICICI Bank down by 0.98%, ITC down by 0.28%, Lupin down by 0.17%, Hindustan Unilever down by 0.05% and Maruti Suzuki down by 0.05% were the top losers. (Provisional)

Meanwhile, Government’s proposal in the revised draft policy unveiled on October 30, 2015 to levy a 2 per cent cess on domestic and international tickets to mop up funds for its regional connectivity scheme that would have led to a hike in air fares is likely to be dropped. Civil Aviation Secretary R N Choubey has said that other means to raise funds for boosting regional air connectivity are being explored after the conclusion of discussions with stakeholders.

He said that the Ministry had received the stakeholders' comments and hence the ways in which the funds required for viability gap funding will be raised are being explored. After taking comments from all stakeholders including airlines, airport operators, general aviation firms, ground-handling agencies, among others, a group of ministers under Union Home Minister Rajnath Singh had discussed the draft policy late last month.

The government had earlier planned to levy the proposed cess from January this year. However, it was deferred due to its failure to finalise the draft civil aviation policy. Choubey also said that the draft civil aviation policy is expected to be taken to the Union Cabinet for its approval by the end of this month. The draft policy proposes providing viability gap funding for airlines for regional connectivity, setting up of no-frills airports, making India as a hub for maintenance, repair and overhaul (MRO) industry besides various tax sops to spur the growth of the industry, among others. Besides, the policy also proposes capping of airfares at Rs 2,500 for one-hour flight under regional connectivity scheme for places that are un-served currently as well as auctioning of bilateral rights. Regional Connectivity Scheme is one of the thrust areas of the draft policy. Choubey said that regional connectivity can't take place unless there was 'collective' money to do so.

The CNX Nifty ended at 7475.60, up by 106.75 points or 1.45% after trading in a range of 7406.05 and 7483.95. There were 43 stocks advancing against 7 stocks declining on the index. (Provisional)

The top gainers on Nifty were Vedanta up by 7.42%, Tata Steel up by 7.29%, BHEL up by 6.39%, Tata Motors up by 6.18% and Larsen & Toubro up by 6.08%. On the flip side, Zee Entertainment down by 1.20%, Ultratech Cement down by 0.97%, ICICI Bank down by 0.91%, ITC down by 0.44% and NTPC down by 0.32% were the top losers. (Provisional)

European markets were trading mostly in red; France’s CAC decreased 9.84 points or 0.22% to 4,415.05 and Germany’s DAX down by 4.39 points or 0.04% to 9,772.23, while UK’s FTSE 100 was up by 4.85 points or 0.08% to 6,151.91.

Asian markets ended mostly higher on Thursday, with positive overnight cues from Wall Street and gains in oil prices in Asian deals underpinning investor sentiment. Japanese stocks rose to 3-1/2 week highs as risk appetite improved following the release of upbeat data on US jobs and a rally in oil and other commodities, which burnished sentiment globally. Chinese shares ended higher as investors waited for the start of the National People’s Congress, an annual legislative session that begins on Saturday. Policy makers there are expected to map out plans to stimulate the slowing economy. Investors shrugged off mixed data from Caixin, which showed that China's service sector growth slowed in February on weaker demand. The yuan firmed against the dollar after hitting a near three-week low the previous day as Moody's Investors Service lowered the outlook on China's government credit ratings.