The Indian markets despite a volatile trade managed a flat closing with a positive bias in last session. Today, the start is likely to be good as the other regional peers are in jubilant mood. There will be some cautiousness too in the market, as RBI Governor Raghuram Rajan talking on euphoria about India being the world's fastest-growing economy has said that India still remains one of the poorest nations in the world on a per capita basis and have a long way to go before we reasonably address the concerns of each one of our citizens. However, Rajan lauded government efforts and said that the current growth rate reflects the hard work of the government. He also said that India should find ways to support higher economic growth on a sustainable basis and not fritter away gains as it did in the past. There will be some buzz in the infra sector stocks, as minister for road transport and highways Nitin Gadkari, under pressure to steer road construction into the fast lane and meet the much-touted 30 km a day target, has set a goal of building 15,000 km of highways this fiscal, two and a half times what was achieved last year. The IT stocks too may see some action after Wipro reported a sequential 0.2% drop in net profit to $337 million for the three months to March.
There will be some other important result announcements too, to keep the markets buzzing. IndusInd Bank, Hindustan Zinc, Cyient and Supreme Industries will be announcing their numbers today.
The US markets managed a positive close, overcoming the profit taking in final hours, supported by energy stocks on rebound in crude oil and some better than expected earnings announcements. The Asian markets have made a jubilant start taking cues from the US markets, barring the Chinese market all the major indices are trading with good gains in early trade, led by the Japanese market, as the yen held near a two-week low amid speculation that the Bank of Japan will expand stimulus at a monetary policy review next week.
Back home, 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, while European stocks too fell from a three-month high. 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. 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.
