Markets extend last session gains with a gap-up opening; Nifty reclaims 7,800 mark

Extending their northward journey for third continuous day, Indian equity benchmarks made a gap-opening and are trading in fine fettle in early deals with frontline gauges hovering above their crucial 25,500 (Sensex) and 7,800 (Nifty) levels amid positive global cues. Meanwhile, broader indices too are trading in line with larger counterparts posting gains in the range of 1.00-1.20 percent. The rally in markets was mainly led by surplus monsoon forecast by the weather office this year after two consecutive droughts. The sentiments were further supported by Indian rupee appreciating 10 paise to 66.32 against the US dollar in early trade following a slew of positive domestic economic. Besides, support also came in 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. On the macroeconomic front, Retail inflation measured by the Consumer Price Index (CPI) eased to a six-month low of 4.83 percent in March from 5.26 percent in February. Also, India's industrial output rose by 2 percent in February after falling continuously for three consecutive months.

In the scrip specific development, Shilpa Medicare rallied over 10 percent on the BSE after the company received good manufacturing practice (GMP) compliance certificate for two API sites from Pharmaceuticals and Medical Devices Agency (PMDA), Japan. 

On the global front, US markets ended higher on Tuesday led by energy companies after news reports said Saudi Arabia and Russia were working toward an agreement to cut oil production.  Asian markets were trading in green after upbeat Chinese trade data offered hope the economy was stabilizing, underpinning both risk sentiment and commodity prices. China’s exports rose 18.7% in yuan terms in March, compared to a year earlier, while imports dipped only a slight 1.7%.

Back home, all the sectoral indices on the BSE were trading in green led by Bankex, Auto, Realty, Capital Goods and PSU. The market breadth on BSE was positive in the ratio of 1379: 250 while 60 scrips remained unchanged.

The BSE Sensex is currently trading at 25531.36, up by 385.77 points or 1.53% after trading in a range of 25358.42 and 25537.06. All the 30 stocks were advancing on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.06%, while Small cap index gained 1.23%.

The top gaining sectoral indices on the BSE were Bankex up by 2.07%, Auto up by 2.05%, Realty up by 1.59%, Capital Goods up by 1.40% and PSU up by 1.34%, while there were no losers.

The top gainers on the Sensex were ICICI Bank up by 4.77%, Mahindra & Mahindra up by 4.62%, Bharti Airtel up by 4.13%, Wipro up by 2.77% and SBI up by 2.37%, while there were no losers.

Meanwhile, in a morale booster to the government, the International Monetary Fund (IMF) in its latest World Economic Outlook report though nudged down its global growth projection for 2016 from 3.4 percent to 3.2 percent, but 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, driven by private consumption and increased industrial activity. It said that India remains a bright spot against the backdrop of a sluggish global economy. The global agency also said that with the revival of sentiment and pickup in industrial activity, a recovery of private investment is expected to further strengthen growth.

IMF said that in 2015, India's growth was 7.3 percent, which would increase to 7.5 percent in the next two years of 2016 and 2017, as forecast in October and noted that in India, monetary conditions remain consistent with achieving the inflation target of 5 percent in the first half of 2017, although an unfavourable monsoon and an expected public sector wage increase pose upside risks.

It also said that lower commodity prices, a range of supply side measures, and a relatively tight monetary stance have resulted in a faster-than-expected fall in inflation, making room for nominal interest rate cuts, but upside risks to inflation could necessitate a tightening of monetary policy.

The fund though has projected a decline in China's growth rate from 6.9 percent in 2015 to 6.5 percent in 2016 and 6.2 percent in 2017, but is more confident than it was in January that stimulus measures there will work. But short-term optimism could not mask enduring worries about China further out. It also suggested some remedies for the global economy like keep monetary policy loose, augment it with fiscal stimulus where possible, and add some pro-growth reforms to the mix.

The CNX Nifty is currently trading at 7816.50, up by 107.55 points or 1.40% after trading in a range of 7772.20 and 7819.10. There were 50 stocks advancing against 0 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 4.26%, Mahindra & Mahindra up by 4.00%, Bharti Airtel up by 3.50%, Bharti Infratel up by 3.04% and Hindalco up by 2.77%, while there were no losers.  

Asian markets were trading in green, FTSE Bursa Malaysia KLCI increased 6.21 points or 0.36% to 1,721.21, KOSPI Index increased 10.95 points or 0.56% to 1,981.32, Jakarta Composite increased 15.5 points or 0.32% to 4,845.07, Shanghai Composite increased 62.87 points or 2.08% to 3,086.51, Taiwan Weighted increased 97.24 points or 1.14% to 8,628.42, Nikkei 225 increased 395.09 points or 2.48% to 16,323.88 and Hang Seng increased 482.4 points or 2.35% to 20,986.84.