The Indian markets surged in last session before going for a break, both the major indices gained around a percent, continuing their bullrun. Today, the start is likely to be in green tailing the gains in other regional counterparts, though there will be some cautiousness too, as the traders will be reacting to the export data, where declining for 16th straight month in March, exports contracted by 5.47 percent to $22.71 billion as shipments of petroleum and engineering products shrunk sharply due to tepid global demand. Meanwhile, Finance Minister Arun Jaitley has said that the global economic situation is grim and worrisome and that has prompted the nations to put up firewalls around their own systems to save themselves from the slowdown and grow within the limitations. Though, he also said that compared to the rest of the world, the Indian economy was growing much faster. The power sector stocks will be in action as a high-level panel has suggested for real-time trading of power and making energy exchanges more flexible to facilitate integration of renewable energy with the electricity grid. There will be lots of earnings announcements too, to keep the markets buzzing, the prominent being Wipro, Network 18, Infomedia, Jay Bharat Maruti etc.
The US markets made a mixed closing in last session reacting to the earnings announcements, while Goldman Sachs, UnitedHealth, and Johnson & Johnson reported better than expected first quarter earnings, slump in shares of large-cap tech firms led by International Business Machines Corp. canceled out positive sentiment. The Asian markets have made mostly a positive start, with some indices surging to four months high taking cues from the biggest jump in commodities prices since August.
Back home, Indian equity Benchmarks showcased yet another courageous performance and went on to outclass indices around the world, by vivaciously rallying around a percent in the session and settling above the psychological 7,900 (Nifty) and 25,800 (Sensex) levels. Investors continued building hefty across the board positions as sentiments got a boost after India's wholesale prices Index (WPI) fell for the 17th straight month in March, with the WPI-based inflation declining 0.85% from a year ago on the back of falling prices of manufactured products. In February, the index was down 0.91%, while in March 2015 it had fallen 2.33%. Investors’ morale was also boosted with Infosys, India’s second-largest information technology (IT) services firm forecasting strong revenue growth of 11.5%-13.5% in constant currency in the current fiscal (FY17). In dollar terms, the company expects revenue to grow between 11.8% and 13.8% for the fiscal year ending March 31, 2017. Besides, good gain in ITC stocks post the company’s decision to resume manufacturing of cigarettes at its factories soon following a favourable high court order too aided the sentiment. Meanwhile, shares of aviation and state-owned oil marketing companies surged after global crude oil prices eased after talks between the OPEC and non-OPEC producers to freeze oil output remained inconclusive. On the flip sides, PSU Banks came under pressure after ratings agency Moody's said asset quality of the 11 rated PSU banks may face further stress as restructured loans may eventually turn into NPAs. On the global front, tumbling crude oil prices dragged down most of the Asian markets on Monday, Europe’s stock markets too sank at the start of trade. Back home, after getting gap up start, Indian benchmark indices slipped into negative territory in early trade, tracking weakness in the other regional markets amid sharp decline in the oil prices. But the frontline indices slowly but steadily continued gathering steam. Finally, the BSE Sensex surged 189.61 points or 0.74% to 25816.36, while the CNX Nifty rose 64.25 points or 0.82% to 7,914.70. Indian markets remained closed on Tuesday on account of a local holiday.
