Markets trade lower in early deals of the first day of FY17

Domestic equity markets have made a weak start in the first day of financial year 2017 mirroring weakness in global peers. Sentiments were under pressure with India Ratings and Research (Ind-Ra) stating that the financial year 2017 is likely to remain challenging for corporate India, and corporates are unlikely to take up new investments on weaker credit conditions than in 2015-16. However, the broader indices were outperforming larger counterparts, trading with gains in the range of 0.30-0.50%.  Traders were getting support from the upbeat news that Finance Minister Arun Jaitley pegged India's GDP growth rate at 7.6 percent for the fiscal 2015-16 and expressed hopes for better numbers next year. Besides, the Index of Eight Core Industries was up 5.7% in February compared with 2.9% in the previous month and was the highest since 8.5% recorded in November 2014 that too supported sentiments.

In the scrip specific development, Jaiprakash Associates rallied over 15 per cent, as the company announced the part sale of its cement business to Aditya Birla group's UltraTech for Rs 15,900 crore.

On the global front, US markets ended mixed on Thursday, the final trading day of the quarter, ahead of the monthly employment report due Friday. Asian markets were trading in red, as the Bank of Japan's Tankan survey results showed that business sentiment among large Japanese manufacturers declined in the first quarter of 2016.

Back home, traders were seen piling up position in FMCG, Realty, Power, Capital Goods and Consumer Durables, while selling was witnessed in Oil & Gas, Metal, Auto, Banking and TECK. The market breadth on BSE was positive in the ratio of 953: 426, while 57 scrips remained unchanged.

The BSE Sensex is currently trading at 25324.49, down by 17.37 points or 0.07% after trading in a range of 25218.04 and 25329.57. 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 0.30%, while Small cap index gained 0.50%.

The top gaining sectoral indices on the BSE were FMCG up by 0.97%, Realty up by 0.74%, Power up by 0.73%, Capital Goods up by 0.70% and Consumer Durables up by 0.33%, while Oil & Gas down by 0.58%, Metal down by 0.47%, Auto down by 0.43%, Bankex down by 0.21% and TECK down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.96%, ITC up by 2.19%, Asian Paints up by 1.27%, Wipro up by 0.65% and Cipla up by 0.57%. On the flip side, Bharti Airtel down by 2.39%, GAIL India down by 1.52%, Mahindra & Mahindra down by 1.46%, Adani Ports &Special down by 1.29% and Tata Steel down by 1.22% were the top losers.

Meanwhile, after government’s major thrust on agriculture in this year's budget, NITI Aayog member Ramesh Chand has said that Agriculture growth could jump to 6 percent in year 2016-17 from 1.2 percent, at present, if monsoon turns out to be normal. He said that such a jump is possible as there is very low base due to poor monsoon in last two years. The Niti Aayog member also said that with the normal monsoon, the area under crop cultivation will increase and also the productivity.

Chand further emphasized that in past there has been such stances where agriculture growth has jumped sharply. And this time the government has ensured procurement at minimum support prices to the farmers in the eastern India which will also help in higher growth. He added that due to poor monsoon the agriculture growth was negative in 2014-15 at 0.25 per cent and in 2015-16 and it is expected to be at 1.2 per cent.

He also said that Niti Aayog will undertake a pilot project in about five villages in Bihar along with Bill and Melinda Gates Foundation on increasing the productivity of pulses. Food grains production during crop year (July-June) 2015-16 is estimated at 253 million tones, while as per the final estimate of Agriculture Ministry in 2014-15 crop year food grains production fell to 252 million tonnes from 265 million tonnes in 2013-14.

Meanwhile, the Niti Aayog has firmed up model guidelines that will encourage leasing of land between farmers and farming cooperatives to boost farming. It will legalise land leasing of farmlands between farmers and farming cooperatives, which will not only protect the rights of sharecroppers, but also promote occupational mobility in rural areas. The Model Act will soon be available in the public domain and state governments will be able to use the guidelines as well as modify them as per their socio-economic and political requirements.The CNX Nifty is currently trading at 7725.85, down by 12.55 points or 0.16% after trading in a range of 7699.60 and 7727.75. There were 15 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were BHEL up by 4.00%, ITC up by 2.21%, Asian Paints up by 1.16%, Kotak Mahindra Bank up by 0.67% and Bank Of Baroda up by 0.65%. On the flip side, Bharti Airtel down by 2.37%, Aurobindo Pharma down by 1.66%, BPCL down by 1.62%, Mahindra & Mahindra down by 1.61% and GAIL India down by 1.60% were the top losers.

Asian markets were trading in red, Nikkei 225 decreased 470.92 points or 2.81% to 16,287.75, Hang Seng decreased 282.19 points or 1.36% to 20,494.51, Taiwan Weighted decreased 114.69 points or 1.31% to 8,630.14, Shanghai Composite decreased 42.69 points or 1.42% to 2,961.23, KOSPI Index decreased 16.56 points or 0.83% to 1,979.29, Jakarta Composite decreased 16.09 points or 0.33% to 4,829.29 and FTSE Bursa Malaysia KLCI decreased 6.61 points or 0.38% to 1,710.97.