Barometer indices end on a flat note after a choppy trade

Wednesday’s trading session was of consolidation, as the Indian equity indices appeared a bit fatigued and remained in tight range for most part of the day. Nevertheless, the benchmarks managed to extend the winning momentum for the fifth consecutive day of trade, as local sentiments continued to show signs of improvement. Investors took some encouragement with Finance minister Arun Jaitley’s statement that India's economic growth could surge to 8.5%, especially if the monsoon is as bountiful as forecast, adding that he hopes interest rates will fall further as prices trend lower. Some support also came with report that India Inc's business optimism index remained stable for the April-June quarter of this year, thanks to a rate cut by the RBI and Government's recent policy reforms. The Dun & Bradstreet Composite Business Optimism Index stands at 81.1 during the second quarter of 2016, an increase of 1.1 per cent as compared to April-June period of 2015. However, market participants remained cautious with the report that India’s merchandise exports extending its decline for the sixteen months in row, contracted by 5.47 percent to $22718.69 million in the month of March, as shipments of petroleum and engineering products shrunk sharply due to tepid global demand. Besides, sharp fall in the Asian and European stock markets amid drop in the oil prices also weighed on the sentiment. Meanwhile, shares of air conditioner and air cooler makers edged higher on expectations of good retail air conditioner sales in summer season. Further, metal and mining stocks also surged on recent rally in copper and steel prices in global commodities markets. However, shares of sugar companies declined after the reports that the government was mulling to control sugar prices rise.

On the global front, Asian markets ended mostly in red on Wednesday as oil prices took a fresh spill on news Kuwaiti oil workers ended a three-day strike, leaving markets suddenly directionless. Further, European stocks fell from a three-month high as investors assessed earnings reports, while miners and energy producers slipped amid tumbling commodity prices. 

Back home, after getting a firm start, Indian benchmark indices dropped into the negative terrain sooner than later, lacking any significant upside cues. The indices moved only sideways thereafter but touched intraday lows in the late morning session. However, the frontline gauges managed to pare the losses and rise above the neutral line in the dying hours of trade and settled in close proximity with previous closing levels. Finally the NSE’s 50-share broadly followed index Nifty ended flat, while Bombay Stock Exchange’s sensitive Index Sensex added merely twenty seven points.

The broader markets however managed to outperform the larger peers, and the BSE’s midcap and smallcap indices settled with moderate gains. On the BSE sectoral space, Metal counter remained the top gainer in the space with over three percent surge, followed by the Consumer Durables, Power and Capital Goods indices which ended with moderate gains of around a percent. On the flipside, the Oil & Gas, Auto and TECK sectors languished at the bottom of the table with losses of 0.73%, 0.55% and 0.43% respectively. The market breadth remained positive as there were 1477 shares on the gaining side against 1145 shares on the losing side, while 148 shares remained unchanged.

Finally, the BSE Sensex gained 27.82 points or 0.11% to 25844.18, while the CNX Nifty rose 0.05 to 7,914.75.

The BSE Sensex touched a high and a low 25956.34 and 25716.81, respectively. The broader indices made a positive closing; the BSE Mid cap index ended up by 0.10%, while Small cap index gained 0.64%

The top gaining sectoral indices on the BSE were Metal up by 3.77%, Consumer Durables up by 1.81%, Power up by 1.07%, Capital Goods up by 0.94% and Bankex up by 0.77%, while Oil & Gas down by 0.73%, Auto down by 0.57%, TECK down by 0.55%, Realty down by 0.43% and IT down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 6.52%, Axis Bank up by 3.13%, GAIL India up by 2.11%, Wipro up by 2.07% and NTPC up by 1.61%. On the flip side, TCS down by 2.79%, Reliance Industries down by 2.21%, Maruti Suzuki down by 1.31%, Sun Pharma Inds. down by 1.06% and Mahindra & Mahindra down by 1.02% were the top losers.

Meanwhile, expressing hope that the country will be able to improve its growth this year from the 7.6 percent achieved last fiscal, Finance Minister Arun Jaitley said that India has its 'hands full' in bringing about structural changes and implementing key reforms to boost economic growth.

The minister said that the country still requires a lot of structural changes and the government has taken steps to ease processes, make the business environment easier and bring in greater transparency into the system. Highlighting various initiatives, Jaitley said that the government has also changed arbitration laws, amended some of the 'onerous provisions' of the Companies Act and will bring down corporate tax to 25 percent over the next couple of years. He further expressed hope that the bankruptcy law would be approved over the next few weeks and that the government 'is in the final stages' of passing a law that deals with commercial indebtedness.

In addition to this, he said that the two significant directions which he has followed are increased expenditure in infrastructure and in rural India. These are the two areas which were lacking and these appear to be the focus area and will probably be the direction of the economy in the next few years. On indirect taxes, he said India is in the 'last stages' before the Goods and Services Tax (GST) is approved.

The CNX Nifty touched a high and low 7,950.40 and 7,877.55 respectively. 

The top gainers on Nifty were Tata Steel up by 6.69%, Hindalco up by 5.10%, Bank of Baroda up by 3.51%, Axis Bank up by 3.05% and Axis Bank up by 3.05%. On the flip side, Idea Cellular down by 3.23%, Bharti Infratel down by 2.86%, TCS down by 2.65%, Reliance Industries down by 2.59% and Aurobindo Pharma down by 1.92% were the top losers.

European markets were trading in red; UK’s FTSE 100 decreased 31.76 points or 0.5% to 6,373.59, Germany’s DAX shed 17.35 points or 0.17% to 10,332.24 and France’s CAC was down by 10.24 points or 0.22% to 4,556.24.

Asian equity markets ended mostly lower on Wednesday after oil prices declined in response to news a three-day strike by oil workers in Kuwait had been wound up. Shanghai stocks has their worst performance in eight weeks on Wednesday, tumbling more than 2 percent and breaching a key technical support level as investors who are increasingly worried about the economy took profits from a long rally. Japanese shares pared early gains to end slightly firmer, as oil prices retreated in Asian deals and the yen strengthened in the wake of encouraging trade balance data and comments from BOJ Governor Haruhiko Kuroda that there is scope for pushing the interest on excess cash parked by banks further into negative territory.