The Indian markets picked up pace in late hours and managed a marginally positive close in last session. Today the start of the F&O expiry session is likely to be in green tailing the gains in the other regional markets, however there will be volatility too, as the April series will expire later in the day and the traders will be adjusting and rolling over their positions. Though, marketmen will be getting some encouragement with the report that foreign direct investment (FDI) into the country has increased 37 percent after the launch of 'Make in India' programme till February this year. The overseas inflows grew 29 percent during the period compared to the 15-month period prior to the launch. Meanwhile, increasing the chances of the long-delayed Bankruptcy Code securing parliamentary assent in the current session, a joint committee of both Houses has approved insolvency code.
There will be some important earnings announcements that will keep the markets buzzing for the day. HCL Technologies, SSWL, Vedanta, Tata Metaliks, Idea Cellular, ACC, Ambuja Cement, Dabur India and HCC etc will be announcing their numbers.
The US markets once again made a mixed closing, following the Federal Reserve’s monetary policy announcement, which did not contain any major surprises. The central bank also reiterated that the actual path of rates will depend on the economic outlook as informed by incoming data. The Asian markets have made a mixed start with some of the indices gaining over a percent after the Federal Reserve’s interest-rate signals and ahead of the Bank of Japan’s policy decision.
Back home, Wednesday’s trading session was of consolidation and the Indian benchmark indices appeared a bit fatigued remaining in tight range throughout the day. Nevertheless, the benchmarks managed to extend the winning momentum for the second consecutive day of trade, as local sentiments continued to show signs of improvement. There was some support with the SASCOF indication that Central, western and north western parts of India are likely to get above normal rainfall, while most of the remaining parts of the country, barring some exceptions, are set to get normal rainfall. SASCOF predicted development of weak positive Indian Ocean Dipole (IOD) conditions, which favours good monsoon rainfall, in early part of monsoon season. Further, Niti Aayog vice-chairman Arvind Panagariya said that the economy is expected to grow over 8 per cent this fiscal with the forecast of above-normal monsoon raising hopes of the agriculture sector's revival after two successive drought years. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 512.22 crore on April 26, 2016. However, investors remained cautious ahead of US and Japanese central bank policy decisions, while private sector lender Axis Bank fell on expectations of more bad loans in the current financial year. Meanwhile, shares of oil companies gained after crude oil prices hit 2016 highs on Tuesday, while telecom stocks surged amid reports that Reliance Jio may delay its launch of 4G service, while Moody's report on the Bharti-Videocon deal also boosted sentiment. On the global front, most of Asian markets ended the session on weak note, European stocks too slipped in early trade, weighed down by some weak corporate earnings. Back home, after getting weak start, Indian frontline equity indices traded in the tight range around the neutral line for most part of the session, as investors remained cautious ahead of the outcome of the US Fed meet later today and the expiry of April derivative contracts on Thursday, however hefty buying in several frontline counters helped the indices to end the session on positive note. Finally, the BSE Sensex gained 56.82 points or 0.22% to 26064.12, while the CNX Nifty rose 17.25 points or 0.22% to 7,979.90.
