Benchmarks continue firm trade in late afternoon session

Indian equity benchmarks continued their firm trade in the late afternoon session on account of buying in frontline blue chip counters. The sentiments got some support after Finance Minister Arun Jaitley pitched for easier monetary policy, arguing that high interest rates can make the economy sluggish. The minister added that the government has stuck to fiscal deficit commitments and inflation has been under control. Reserve Bank will hold its first bimonthly monetary policy review for 2016-17 on April 05. Traders were seen piling up position in TECK, IT and Auto stocks while selling was witnessed in FMCG, Capital Goods and Realty sector stocks. In scrip specific development, Infibeam Incorporation was trading in green after debuting on the bourses today above their issue price. On the other hand, shares of cigarette makers like ITC, Godfrey Philips and VST Industries were trading under pressure after they suspended production with effect from Friday. The cigarette makers cited ambiguity over the government’s new health warning rules for packs.

On the global front, the Asian markets were trading on mixed note, while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,700 and 25,200 levels respectively. The market breadth on BSE was positive in the ratio of 1432:996 while 144 scrips remained unchanged.

The BSE Sensex is currently trading at 25295.81, up by 26.17 points or 0.10% after trading in a range of 25223.49 and 25419.19. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.13%, while Small cap index up by 0.34%.

The gaining sectoral indices on the BSE were TECK up by 1.49%, IT up by 1.37%, Auto up by 1.13%, Power up by 0.78%, Consumer Durables up by 0.53% while, FMCG down by 0.80%, Capital Goods down by 0.39%, Realty down by 0.37%, Oil & Gas down by 0.35%, PSU down by 0.25% were the losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.68%, Bharti Airtel up by 2.88%, Infosys up by 2.37%, Tata Motors up by 2.13% and Bajaj Auto up by 1.39%.

On the flip side, ITC down by 1.99%, Axis Bank down by 1.35%, ONGC down by 1.32%, Coal India down by 1.04% and HDFC down by 1.04% were the top losers.

Meanwhile, registering above the crucial 50.0 threshold for the third consecutive month, India’s manufacturing growth rose to an eight-month high in March driven by a strong rise in business orders, leading firms to scale up output. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI)-composite single-figure indicator of manufacturing performance was up from 51.1 in February to 52.4 in March. A figure above 50 represents expansion while a reading below this level means contraction.

According to the survey, India’s manufacturing upturn gathered momentum in March, with stronger inflows of new work which lead firms to scale up output. Further, with the improved domestic demand, producers also recorded an increase in new export business. These positive developments encouraged companies to buy more inputs.  On the price front, cost inflation accelerated and output charge inflation touched a 16-month high.

The latest expansion was widespread across the three monitored sub-sectors, with consumer goods posting the quickest rate of increase. March data highlighted a third successive monthly rise in order books. New business inflows increased at a solid pace. Growth of new export orders was sustained, but the rate of expansion remained slight. Buying levels increased further in March, which survey participants linked to stock-building initiatives. Although quicker than in February, the rate of growth was slight overall.

Furthermore, the survey highlighted that the backlogs of work decreased in March. These prevented manufacturers from taking on additional workers and employment levels were broadly unchanged again. Meanwhile, input costs rose amid reports of the weaker rupee resulting in higher prices paid for imported raw materials. Tariffs were subsequently raised.

The CNX Nifty is currently trading at 7731.45, up by 18.40 points or 0.24% after trading in a range of 7704.40 and 7757.60. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 5.42%, Tata Power up by 5.14%, Mahindra & Mahindra up by 3.49%, Bharti Airtel up by 2.83% and Hindalco up by 2.65%.

On the flip side, ITC down by 2.11%, ONGC down by 1.53%, Bharti Infratel down by 1.48%, Axis Bank down by 1.42% and HDFC down by 1.37% were the top losers.

The Asian markets traded on a mixed note; KOSPI Index increased 5.4 points or 0.27% to 1,978.97 and FTSE Bursa Malaysia KLCI increased 12.12 points or 0.71% to 1,722.67.

On the other hand, Nikkei 225 decreased 40.89 points or 0.25% to 16,123.27 and Jakarta Composite decreased 1.1 points or 0.02% to 4,842.08.

Stock Exchanges in China, Hong Kong and Taiwan were closed today on account of National holiday.

The European markets were trading in green; UK’s FTSE 100 increased 15.32 points or 0.25% to 6,161.37, France’s CAC increased 10.84 points or 0.25% to 4,333.08 and Germany’s DAX increased 35.28 points or 0.36% to 9,829.92.