The Indian markets managed to extend their gaining streak in last session, supported by some late hour buying. Today, the start of the last trading day of the week is likely to remain cautious tailing the sluggishness in the global markets, after deadly terror attacks in Brussels and traders will also be trying to remain on sideline ahead of the long weekend. Meanwhile, NITI Aayog Vice Chairman Arvind Panagariya has said that in order to create jobs on a large scale, India should emerge as an attractive destination for big manufacturing firms that are moving out China because of rising wages and demographic transition. There will be some buzz in the electronic segment, as Communications and IT Minister Ravi Shankar Prasad has said that total investments in electronics manufacturing sector in India has crossed Rs 1.28 lakh crore. Prasad also said that India is fast adopting technology and the country is likely to have half a billion Internet users by the end of this year. The oil & gas sector too will be in action as the Petroleum Minister Dharmendra Pradhan has said that state-run oil and gas companies are planning to create a venture capital fund to encourage start-ups to develop new business models and infuse innovation into India`s hydrocarbons sector. He said that the time had come to change the marketing strategy from liquid fuels to gas and encourage new business models in the sector to promote innovation and create infrastructure.
The US markets made a mixed closing in last session, despite recovering from the early lows. The major averages kept bouncing back and forth across the unchanged line throughout the day after the news broke out of a terrorist attack in the Belgian capital of Brussels. The Asian markets have made mostly a lower start tailing the US markets and on decline in the crude prices. The Japanese market too was marginally in red despite the yen trying a rebound after its three-day drop.
Back home, after remaining on subdued note for most part of the session, Indian benchmark indices entered into positive territory in the dying hours of trade and managed to extend the winning momentum for the third consecutive day, as hopes of aggressive rate cuts by central bank offset both profit-taking and global uncertainty after two explosions tore through Brussels airport on Tuesday morning killing 13 people. Sentiments got some support with the report that India's current account deficit, the excess of imports over exports, fell further to 1.3% of the gross domestic product due to benefits of lower commodity prices, but the fall in remittances from overseas Indians restricted the improvement in balance of payments (BoP). Market participants turned optimistic with rating agency ICRA projecting Indian economic growth to improve to 7.7 percent in next fiscal, led by domestic consumption demand on the back of implementation of 7th Pay Commission and OROP recommendations. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 1,396 crore on March 21, 2016. However, market participants remained cautious with the report indicating more than 72 per cent of the country has received excess rainfall in March in a phenomenon of unseasonal rains that led to crop losses. According to the India Meteorological Department (IMD), from March 1 to 18, of the 36 sub-divisions, 26 received excess rainfall. Besides, the report that manufacturing activity in the country does not augur well for the economic growth in March and bank credit to domestic export sector suffered due to fall in external demand, also weighed on the sentiment. The yearly SBI Composite Index for March declined below 50 at 49.5, compared with last month index of 51.3. On the global front, Asian equity markets ended mostly in red, while European shares too fell sharply in early trade. Back home, the benchmark got off to a pessimistic start following the Asian peers as sentiments got pressured after hawkish comments from US Federal Reserve officials clouded the country's monetary policy outlook. However, the psychological 7,650 and 25,100 levels proved as strong support levels for the key gauges as the benchmarks soon recovered from the lows. Sustained buying across the board helped the indices climb above the neutral line making it a hat-trick of positive close. Finally, the BSE Sensex gained 45.12 points or 0.18% to 25330.49, while the CNX Nifty rose 10.65 points or 0.14% to 7,714.90.
