Post Session: Quick Review

Final day of the financial year turned extremely volatile towards the end and markets somehow managed to eke out slender gains on March F&O expiry session. Markets traded with tradition for most part of the day’s trade, as sentiments remained up-beat 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.

Some support also came with report that foreign institutional investors’ (FII) inflow in the Indian market so far this month is the highest single-month investment since February 2013. According to data from National Securities Depository and Securities and Exchange Board of India, FIIs have put in Rs 21,327 crore ($3.18 billion) so far in the Indian market during the current month (till March 29). However, market pared almost all of their profit as traders booked their profit at higher levels amid feeble global cues.

On the global front, European counters have made a feeble start with CAC, DAX and FTSE were trading with a cut of over half a percent in early deals. Asian markets ended mostly in red, led by over half a percent fall in Japanese Nikkei, as a stronger yen trimmed the profit outlook for exporters. Investors stayed on the sidelines on the final day of Japan’s financial year looking for more catalysts ahead.

Back home, appreciation in Indian rupee too aided sentiments. The rupee strengthened by 12 paise to 66.25 against the US dollar at the time of equity markets closing on continued selling of dollar by banks and exporters amid increased foreign fund inflows. Stocks related to infra counter edged higher, 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. Shares of gas utility firms i.e. Gujarat State Petronet, Gujarat Gas and Indraprastha Gas edged higher on reports that the cut in gas price would reduce raw material costs and expand margins. However, aviation stocks edged lower as a regular jet fuel price review is due today, March 31, 2016.

The NSE’s 50-share broadly followed index Nifty gained marginally to end below the psychological 7,750 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex rose marginally to hold its psychological 25,300 mark. Broader markets, however, outperformed benchmarks and ended the session with a gain of over around half a percent.

The market breadth remained in favor of advances, as there were 1311 shares on the gaining side against 1,240 shares on the losing side while 189 shares remain unchanged. (Provisional)

The BSE Sensex ended at 25341.86, up by 3.28 points or 0.01% after trading in a range of 25223.22 and 25479.62. There were 14 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.68%, while Small cap index up by 0.46%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.21%, Power up by 0.82%, IT up by 0.66%, Healthcare up by 0.66% and TECK up by 0.63%, while Metal down by 0.77%, PSU down by 0.69%, Oil & Gas down by 0.64%, Energy down by 0.46% and Capital Goods down by 0.18% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were TCS up by 1.63%, Adani Ports &Special up by 1.30%, Hindustan Unilever up by 1.20%, Infosys up by 1.18% and Sun Pharma Inds. up by 1.03%. On the flip side, SBI down by 1.85%, ONGC down by 1.70%, Coal India down by 1.57%, Bharti Airtel down by 1.53% and Asian Paints down by 1.52% were the top losers. (Provisional)

Meanwhile, NITI Aayog is all set to introduce a new model law on land lease which will improve agricultural efficiency and quicken the pace of industrialization. In September last year, the Aayog had set up an expert committee under T Haque, the former chairman of the Commission for Agricultural Costs and Prices, to prepare a model agricultural land leasing law in consultation with states, keeping in view the need to legalise and liberalise land leasing for much-needed agricultural efficiency, equity, occupational diversification and rapid rural transformation. The draft law is based on the recommendations of the committee.

The draft model Act, which is expected to be put up for stakeholder comments this week will offer flexibility to land owners and tenants to decide on the term of lease and rent, thus making it simpler for the government to lease land for public-private partnership projects in sectors other than agriculture. Further, it will also open up avenues to the provision of land for industrialisation, which is fully within the state's jurisdiction, and allow the landowner to retain ownership of land.

Moreover, it may also help tenants secure short-term credit and other services on the basis of a simpler lease agreement. Furthermore, the model law may also allow automatic renewal of agreement on the expiry of lease period while simplifying the procedure for lease termination within the agreement period. The Centre and state governments will now be able to implement their policies efficiently in the presence of transparent land leasing law.

The CNX Nifty ended at 7738.40, up by 3.20 points or 0.04% after trading in a range of 7702.00 and 7777.60. There were 21 stocks advancing against 29 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Power up by 3.19%, Zee Entertainment up by 2.76%, Indusind Bank up by 2.21%, Ultratech Cement up by 1.40% and TCS up by 1.24%. On the flip side, Vedanta down by 1.96%, Cairn India down by 1.79%, ONGC down by 1.74%, SBI down by 1.67% and Coal India down by 1.65% were the top losers. (Provisional)

European markets were trading in red; Germany’s DAX decreased 54.45 points or 0.54% to 9,992.16, France’s CAC declined 46.57 points or 1.05% to 4,397.85 and UK’s FTSE 100 was down by 34.7 points or 0.56% to 6,168.47.

Asian equity markets ended mixed on Thursday despite U.S. stocks closing higher for the third straight session overnight to push further into positive territory for 2016. China stocks extended gains after the previous session's 2 percent jump, as markets took comfort in the likely prospect that US interest rates will rise at a slower pace. However, Japan's Nikkei fell to a near two-week low as a stronger yen trimmed the profit outlook for exporters, while investors stayed on the sidelines on the final day of Japan's financial year looking for more catalysts ahead.