Markets trade in green in early deals; Sensex reclaims 25,900 mark

With a positive opening Indian equity markets have extended their last session gains and are now trading higher by over quarter a per cent in early deals, on account of buying by funds and retails investors. The session was also proving fruitful for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.50-0.80%.  Buying in Metal stocks aided the sentiment and Hindalco and Tata Steel were trading higher on account of rebound in global commodity prices. The sentiments were further supported by Indian rupee, which appreciated by 30 paise to 66.25 against the US dollar in early trade at the Inter-bank Foreign Exchange on increased selling of American currency by exporters.  A fall in the dollar against major world currencies globally after data showed new US home construction slumped in March to the lowest pace since October helped strengthen the domestic currency. However,  upside remained capped on report that India’s exports contracted by 5.47 percent to $22.71 billion in the month of March as shipments of petroleum and engineering products shrunk sharply due to tepid global demand.

In the scrip specific development, CRISIL rallied over 10 per cent on the BSE after ratings agency reported 40% year on year (YoY) jump in its consolidated net profit at Rs 78.60 crore for the first quarter (Q1) ended March 31, 2016.

On the global front, US markets ended mixed on Tuesday with energy shares emerging as top gainers following a rise in oil prices. Fall in the technology pack and consumer discretionary stocks due to mixed earnings reports hurt the sentiment.  Asian markets were trading mostly in red as investor attention turned to upcoming remarks from a European Central Bank official.

Back home, traders were seen piling up position in Metal, Consumer Durables, Capital Goods, Power and Banking, while selling was witnessed in TECK, IT, Realty and Oil & Gas. The market breadth on BSE was positive in the ratio of 1154: 489 while 80 scrips remained unchanged.

The BSE Sensex is currently trading at 25909.48, up by 93.12 points or 0.36% after trading in a range of 25817.53 and 25953.83. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index was up by 0.80%.

The top gaining sectoral indices on the BSE were Metal up by 2.59%, Consumer Durables up by 1.26%, Capital Goods up by 1.08%, Power up by 0.78% and Bankex up by 0.62%, while TECK down by 0.36%, IT down by 0.21%, Realty down by 0.05% and Oil & Gas down by 0.01% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.55%, HDFC up by 2.19%, Axis Bank up by 2.17%, GAIL India up by 2.04% and Wipro up by 1.64%. On the flip side, TCS down by 1.48%, Mahindra & Mahindra down by 1.35%, Maruti Suzuki down by 0.92%, Sun Pharma Inds. down by 0.66% and Bharti Airtel down by 0.49% were the top losers.

Meanwhile, Finance Minister Arun Jaitley expressing his concern about the global economic condition 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. He said that “Low oil prices have helped some people, it has hurt some people...Each one is trying to put firewalls around their own system so that within the limitations how best you can save yourself from the slowdown and grow within the limitations that the world has created for you.'

Jaitley stating his prognosis for the global economy for the next couple of years said that global economic situation is grim and worrisome and what will be the state of play a year or two years from now, I don't think anybody has been able for sure to hazard even a significant guess.

He further said that global situation is challenging, and added that global factors have impacted India also and they are hurting us in terms of exports in particular. Jaitley said each of the regions in the world is trying to do its best within the limitations that exist. He also said that said given the challenging global economic situation, the level of ambition in nations is such that even an one-two percent economic growth is considered 'good growth” under the circumstances.

The CNX Nifty is currently trading at 7940.95, up by 26.25 points or 0.33% after trading in a range of 7906.65 and 7950.40. There were 34 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.40%, Tata Steel up by 3.37%, GAIL India up by 1.91%, HDFC up by 1.62% and Tata Motors - DVR up by 1.56%. On the flip side, Bharti Infratel down by 2.28%, Idea Cellular down by 1.86%, Mahindra & Mahindra down by 1.38%, TCS down by 1.35% and Zee Entertainment down by 1.29% were the top losers.

Asian markets were trading in red, Hang Seng decreased 224.87 points or 1.05% to 21,211.34, Taiwan Weighted decreased 115.48 points or 1.34% to 8,518.24, Shanghai Composite decreased 77.51 points or 2.55% to 2,965.31, Jakarta Composite decreased 8.27 points or 0.17% to 4,873.66, FTSE Bursa Malaysia KLCI decreased 4.26 points or 0.25% to 1,706.89 and KOSPI Index decreased 1.02 points or 0.05% to 2,010.34.

On the flip side, Nikkei 225 increased 32.18 points or 0.19% to 16,906.62.