Boisterous benchmarks stage an outstanding rally; Sensex ends above 25000 mark

Indian benchmark equity indices staged a blockbuster performance on the first day of the week by strongly rallying close to one and half percentage points in the session and re-conquering their psychological levels. Investor sentiment was buoyed by a strong trading in the European markets and higher expectations of a strong performance from Big IT companies in the forthcoming earnings season. Besides, fresh buying was also witnessed in the mid-cap and small-cap space as traders purchased the beaten down stocks at attractive valuations. Sentiments got some support with Economic Affairs Secretary Shaktikanta Das’ statement that a Parliamentary panel is expected to submit its report on the Bankruptcy and Insolvency Code on April 29 and government would push for the passage of the bill in the second leg of the Budget session. Also, Naushad Forbes, the new President of the Confederation of Indian Industry (CII) said that Indian industry is ready to grant greater market access to European Union firms in areas such as automobiles, wines and spirits in return for gains in garments, automobiles, automobile components and services sector in a bid to end a deadlock on the proposed EU Free Trade Agreement.

On the global front, Asian markets struggled for direction on Monday, with renewed strength in the yen, government bonds and gold pointing to increased caution among investors, but a sharp rebound in European stocks suggested a pent-up appetite for risk. Most of the Asian markets except China ended lower, with Japanese shares declining the most as the dollar fell back below 108 yen and data showed Japan's core machinery orders fell 9.2% in February from the previous month, making its first and fastest contraction in three months. However, Chinese shares bucked the trend, posting gains, after data showed Chinese inflation held above 2% for a second-straight month in March, indicating some stability in the economic powerhouse.

Back home, after getting positive start, Indian benchmark indices slipped into negative territory in early session and traded near neutral line for most part of the session as investors adopted cautious approach, ahead of key economic data -- industrial production (IIP) for February and consumer price index (CPI) data for March -- to be released tomorrow. However, good gains in banking stocks and a rebound in index heavyweight like Infosys aided intraday rebound for the two key benchmark indices in late trade. The bourses further capitalized on the momentum and spurted in final hour of trades on the back of broad based bottom fishing in undervalued stocks. Finally the NSE’s 50-share broadly followed index Nifty, got buttressed by over one and half percent to settle below the crucial 7,650 support level, while Bombay Stock Exchange’s Sensitive Index-Sensex accumulated around three hundred and fifty points and closed above the psychological 25,000 mark. Moreover, the broader markets underperformed their larger peers by a good margin as the BSE’s midcap index went home with gains of 1.09%, while the smallcap index climbed 0.63% points. On the BSE sectoral space, hefty across the board buying was seen, as not even a single sectoral index went home in the negative territory. Investors piled up hefty positions in the Teck counter which rocketed by over two percent, while the badly butchered Power and Auto indices too showed smart recovery and jumped by about two percent. While the sectors like - IT and Metal too soared in the session. The market breadth remained optimistic as there were 1489 shares on the gaining side against 1097 shares on the losing side while 126 shares remained unchanged.

Finally, the BSE Sensex surged 348.32 points or 1.41% to 25022.16, while the CNX Nifty rallied 116.20 points or 1.54% to 7,671.40.

The BSE Sensex touched a high and a low 25049.92 and 24523.20, respectively. The broader indices made a positive closing; the BSE Mid cap index ended up by 1.09%, while Small cap index gained 0.63%

The top gaining sectoral indices on the BSE were TECK up by 2.25%, Power up by 2.10%, Auto up by 2.00%, IT up by 1.92% and Metal up by 1.78%, while there were no gainers on BSE sectoral indices.

The top gainers on the Sensex were Adani Ports &Special up by 4.54%, Bharti Airtel up by 4.20%, BHEL up by 4.00%, Tata Motors up by 3.67% and Wipro up by 3.36%. On the flip side, Lupin down by 1.51%, Cipla down by 0.58%, Dr. Reddys Lab down by 0.24% and Mahindra & Mahindra down by 0.04% were the top losers.

Meanwhile, stretching the energy ties with Iran, India is to invest up to $20 billion in oil and gas as well as petrochemical and fertiliser projects in the Persian Gulf country subject to provision of concessional rights. Oil Minister Dharmendra Pradhan has informed the Iranian side that India is interested in setting up petrochemical and fertiliser plants, including those in Chabahar SEZ, either through a joint venture between Indian and Iranian public sector companies or with private sector partners.

In this regard Pradhan has requested Iran to allocate appropriate and adequate land in the SEZ and has also requested the Iranian side for favourable treatment in the pricing of gas for India and supply of rich gas at competitive price on long-term basis for the life of joint venture projects Indian companies are interested in setting up.

Furthermore, Oil Minister Dharmendra Pradhan, on a two-day visit to Tehran from April 9, also discussed with his Iranian counterpart the repayment of nearly $6.5 billion that Indian refiners owe to Iran, but there is no agreement yet on rights to develop Farzad-B gas field in the Persian Gulf discovered by OVL. Pradhan conveyed that India is committed towards making payments as and when banking channels, acceptable to both sides, are available.

Pradhan also conveyed to the Iranian side that both countries must expand the basket of oil and gas trade. He expressed India’s interest in importing LPG from Iran and said companies from both sides could discuss on setting up an extraction plant in Chabahar, if required. Both sides agreed to continue examining various means of evacuation of gas such as LNG, including through the proposed Iran-Pakistan-India pipeline.

The CNX Nifty touched a high and low 7,678.80 and 7,516.85 respectively. 

The top gainers on Nifty were Idea Cellular up by 5.87%, Bosch up by 5.30%, Hindalco up by 4.62%, Bank of Baroda up by 4.47% and Adani Ports &Special up by 4.38%. On the flip side, Lupin down by 1.31%, Ambuja Cement down by 0.82%, Dr. Reddys Lab down by 0.58%, Cipla down by 0.29% and Ultratech Cement down by 0.28% were the top losers.

European markets were trading mostly in green; France’s CAC increased 14.77 points or 0.34% to 4,317.89 and Germany’s DAX was up by 77.72 points or 0.81% to 9,699.98, while UK’s FTSE 100 was down by 2.95 points or 0.05% to 6,201.46.

Asian equity markets ended mixed on Monday, with mainland Chinese shares posting strong gains on signs of easing deflationary pressures in the world's second-largest economy. China reported its inflation rate in March was 2.3 percent unchanged from February, while the producer price index or wholesale prices paid at the factory gate dropped 4.3 percent. Hong Kong stocks ended up, aided by a bullish mainland market after China's March inflation came in lower than forecast and fanned optimism Beijing will keep monetary policy loose. However, Japanese shares fell in thin trade as the dollar fell back to below 108 yen and data showed Japan's core machinery orders fell 9.2 percent in February from the previous month, making its first and fastest contraction in three months.