The Indian markets added gains in last session on hopes of good monsoon, which could indicate demand revival in various sectors. Today, the start is likely to be good and markets will continue to move higher, taking cues from the global peers and on some good macro data announced after the market hours last day. Traders will however be getting major boost with the India Meteorological Department's (IMD) forecast of above-normal rainfall this monsoon, with rainfall activity likely to be 106 per cent of long period average (LPA). On the macro front, Industrial production grew at 2 percent in February after remaining negative for three months and retail inflation dropped to a 6-month low of 4.83 percent in March. The uptick in industrial output was mainly on account of improvement in mining, power and consumer durables. Marketmen will also be getting some support with the International Monetary Fund’s latest World Economic Outlook report, which despite cutting global growth forecast has said that India's growth is projected to notch up to 7.5 percent in 2016-17, overtaking China's GDP by more than 1 percent, mainly driven by private consumption and increased industrial activity. The steel sector will be buzzing today, as the government has started an investigation into alleged dumping of a certain variety of steel products by six countries, including China, Japan and Korea, following a complaint by major producers.
The US markets after showing lack of direction in early trade surged in last session, offsetting the pullback seen in the previous session, mainly due to a substantial increase by the price of crude oil, which reached its highest closing level since later November. The Asian markets have made an all green start with some of the indices surging by over two percent in early deals, fueled by surge in oil and report of pickup in Chinese trade activity, the country’s overseas sales in March increased 19 percent from a year earlier in yuan term. Japanese market strengthened further on the weakness in yen.
Back home, Indian markets extended their jubilation and rallied in Tuesday's trading session, ahead of the release of February industrial production and March consumer price index (CPI) data later in the day. It was mainly the monsoon talk that kept the markets in high spirit through the day. Ahead of India Meteorological Department (IMD), issue its forecast for this year's monsoon rains, private weather forecaster Skymet predicted above average rains this year. A normal monsoon - after two straight years of drought - is likely to boost the farm sector. The government too has said that after two years of deficient rainfall, monsoon this year is expected to be normal and directed states to chalk out plans to boost crop acreage and production in Kharif season starting June. Traders also took some encouragement with India's Chief Economic Adviser (CEA) Arvind Subramanian’s statement that India's economy has the potential to grow between 8 to 10 per cent if the country continues its pace of reforms. He further stated that achieving this growth rate is dependent on a number of factors including the continuation and pace of reforms and global environment that promotes exports. On the global front, after the subdued performance of the US markets, the Asian markets made mostly a positive closing, the European stocks made mostly a positive start and held near a one-week high. Back home, local markets after a choppy start firmed up in the very early morning of trade on reports that foreign investors are buying heavily into emerging market and the investor community has infused Rs 3,469 crore in domestic equities so far this month. In early trade markets were also encouraged by a World bank report that India's GDP will grow at 7.7% in 2017 and 7.5% in 2016, not only this driven by India's GDP growth, the World Bank forecasted gradual acceleration in South Asia's economic growth from 7.1 percent in 2016 to 7.3 percent in 2017.The local traders kept accumulating value stocks and markets gained momentum, however sudden bout of profit taking appeared in metal and select IT stocks in the late noon session that took the major bourses almost in the red territory, but the selling was reciprocated by good buying that once again powered the markets to highs of the day. Finally, the BSE Sensex ended at 25145.59, up by 123.43 points or 0.49%, while the Nifty ended at 7708.95, up by 37.55 points or 0.49%.
