The Indian markets vivaciously rallied in last session with major bourses gaining around two percent for the day, as the US Fed chief Yellen’s comment fueled global rally in equity markets. Today, the start of the F&O series expiry day is likely to see a cautious start for the markets as the regional markets are trading mixed, while some volatility is expected in latter trade once traders starts settling and rolling out their final positions to the next series. Nifty which has been surging through the series may see expiry near 7750. Markets will get some support with Finance Minister Arun Jaitley stating that Australian future and super funds be exposed to India, as he called for increase in investment by Australia businesses in India as they can get better returns on their investment. The oil and gas sector will keep buzzing as the government has cut natural gas prices to $ 3.06 per million British thermal unit from current $ 3.82 from Friday, gas prices are revised every six months and the next change is due on April 1. There will be some action in infra stocks, as the Reserve Bank of India (RBI) has notified some revisions to the external commercial borrowing (ECB) framework thereby allowing infrastructure firms to raise shorter-term ECBs. Now companies in infrastructure sector, non-banking financial companies-infrastructure finance companies (NBFC-IFCs), NBFCs-asset finance companies (NBFC-AFCs), holding companies and core investment companies (CICs) will also be eligible to raise ECB under Track 1 of the framework with minimum average maturity of 5 years.
The US markets ended higher but were well off their day’s high, still all the major averages ended the session at their best closing levels in about three months. The gains were aided by the release of a report from payroll processor ADP showing slightly stronger than expected US private sector job growth in the month of March. The Asian markets have made a mixed start with some indices trading marginally in red, while others are inching toward their best month since October.
Back home, A session after displaying a distressing performance, Indian benchmark indices managed to pull through a scintillating performance by vivaciously rallying around two percentage points on Wednesday, thanks to strong global cues post US Federal Reserve chair, Janet Yellen’s comment and fall in crude oil prices by upto 3%. Yellen stated that the rate of inflation in the US has not yet proven sustainable against the backdrop of looming global risks to the US economy and that the US central bank should proceed only cautiously to the policy adjustments. Besides, hopes of a rate cut by the RBI at its monetary policy review on April 5 also accelerated buying activity in the local markets. Sentiments got some support with Finance Minister’s statement that he will reach out to the Congress again to persuade it to support the much delayed GST bill in second half of the Budget Session beginning next month. Appreciation in Indian rupee too aided sentiments amidst continued foreign fund inflows. On the global front, Asian markets ended firm on Wednesday, European stocks also rallied in early trade. Back home, the benchmark got off to a rollicking opening as investors were largely influenced by the supportive leads from Asian markets. The frontline indices soon gathered momentum and traded with over half a percent gains through the morning session of trade. Second half of the session saw the key gauges capitalize on the momentum further and spurt to session’s highest levels in dying moments. Finally, the BSE Sensex surged 438.12 points or 1.76% to 25338.58, while the CNX Nifty rallied 138.20 points or 1.82% to 7,735.20.
