Benchmarks settle in green; Nifty ends above 8200 mark

Indian equity indices showed smart recovery despite opening the day in red territory as they managed to outclass most of the regional peers in Asia and Europe by good a margin. Sentiments got a boost with Organization for Economic Cooperation and Development (OECD) in its Global Economic Outlook stating that India's growth rate is expected to hover near 7.5% this year as well as next even as many emerging market economies continue to lose momentum. Further, appreciation in the rupee against dollar too supported sentiments. Reversing its three-day downward trend, Indian rupee recovered by 20 paise to 67.23 against the US dollar at the time of equity markets closing on fresh selling of the American currency by exporters. Besides, some support also came in with Economic Affairs Secretary Shaktikanta Das stating that India has done well on fiscal and economic parameters and the GDP growth can touch 8 per cent in the current fiscal with good monsoon, global headwinds notwithstanding. Das also said overall macroeconomic numbers and fiscal parameters of the country are 'very very robust.

On the global front, Asian stocks ended mixed on Thursday after surveys showed global manufacturing activity and demand remain weak, while a jump in the yen sent Japan's Nikkei reeling more than 2%. Market participants remained on the sidelines and refrained from any buying activity ahead of ADP payroll data due tonight and the US government's official jobs report due on Friday for further clues on whether the Federal Open Market Committee would raise interest rates at the upcoming meeting on June 14-15. However, Chinese shares eked out modest gains even as weak factory activity readings brought global growth worries back at center stage. European shares steadied, with investors avoiding taking large positions ahead of the European Central Bank's policy meeting later in the day, while Voestalpine was boosted by well-received results.

Back home, the local benchmark indices got off to a soft start as the indices showed signs of consolidation in early trade, ahead of the European Central Bank (ECB) and Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled today. Thereafter, the key indices remained choppy for most part of the day but saw a sudden spurt in buying in late afternoon trades post the sanguine European markets opening. However, a mild profit booking in dying moments of trade ensured that the key indices shut shops off the intraday highs. Finally the NSE’s 50-share broadly followed index Nifty, got buttressed by close to half percent to settle above the crucial 8,200 support level while Bombay Stock Exchange’s Sensitive Index-Sensex accumulated over hundred points and closed just below the psychological 26,850 mark. Moreover, the broader markets showed some resilience and settled on a positive note. On the BSE sectoral space, Metal counter remained the top gainer with around two percent gains, followed by the PSU and Banking indices which ended with gains of 1.11% and 0.92% respectively. However, the Consumer Durables pocket remained the only sectoral index that languished in the red zone with 0.66% loss since shares of Rajesh Exports, PC Jeweller and Bajaj Electricals plunged 12.9%, 5.30% and 2.45%. The market breadth was pessimistic as there were 1257 shares on the gaining side against 1362 shares on the losing side, while 167 shares remained unchanged.

Finally, the BSE Sensex gained 129.21 points or 0.48% to 26843.14, while the CNX Nifty rose 39 points or 0.48% to 8,218.95.

The BSE Sensex touched a high and a low 26885.16 and 26641.02, respectively. The broader indices made a positive closing; the BSE Mid cap index ended up by 0.66%, while Small cap index up by 0.29%.

The top gaining sectoral indices on the BSE were Metal up by 1.99%, PSU up by 1.11%, Bankex up by 0.92%, Capital Goods up by 0.80% and Oil & Gas up by 0.64%, while Consumer Durables down by 0.66% was the only losing index on BSE.

The top gainers on the Sensex were Coal India up by 3.20%, Tata Steel up by 2.56%, Axis Bank up by 2.14%, Hindustan Unilever up by 2.01% and Hero MotoCorp up by 1.83%. On the flip side, Wipro down by 2.36%, Sun Pharma Inds. down by 1.13%, Lupin down by 0.88%, ITC down by 0.72% and Bajaj Auto down by 0.66% were the top losers.

Meanwhile, concerned about the grim draught situation faced by some parts of the country, the Prime Minister's Office (PMO) has tasked Niti Aayog to prepare a contingency plan for 67 districts in the country that are prone to drought even in years of normal monsoon. The Irrigation Commission had identified 67 drought-prone districts, comprising 326 talukas across eight states with an area of 49.73 million hectares and the Niti Aayog will have to prepare location-specific remedial measures for all the identified districts.

The plan will include material as well as financial support to these districts year after year so as to help them improve their condition. It was reported that Niti Aayog has been asked to prepare the plan at the earliest so that the government can start addressing the problem forthwith.

Some of the financial measures being considered include enhanced subsidies, funding for sowing perennial crops and enhanced work allocation under rural employment guarantee programme. The material support could include making available seeds and other inputs to ensure that farmers get back to their fields with alternate crops even if the main crops fail.

About one-sixth of India, home to about 12% of the country's population, is drought-prone, with the areas that receive rainfall up to 60 cm a year being the most vulnerable. India is heavily dependent on monsoon rains, which have been poor for two years in a row. The government had recently said that nearly 256 districts across India, home to nearly a quarter of the population were impacted by the drought.

The CNX Nifty traded in a range of 8,229.50 and 8,154.75. There were 33 stocks advancing against 18 decliners on the index.

The top gainers on Nifty were Yes Bank up by 3.40%, Coal India up by 3.23%, Hindalco up by 3.01%, Tata Steel up by 2.94% and Axis Bank up by 2.49%. On the flip side, Wipro down by 2.52%, HCL Tech down by 1.78%, Bharti Infratel down by 1.35%, Sun Pharma down by 1.13% and Lupin down by 0.99% were the top losers.

European markets were trading in green; France’s CAC increased 6.73 points or 0.15% to 4,482.12, Germany’s DAX gained 20.12 points or 0.2% to 10,224.56 and UK’s FTSE 100 increased 22.96 points or 0.37% to 6,214.89.

Asian stocks ended mixed on Thursday as yen strength persisted and oil prices drifted lower ahead of the OPEC and ECB meetings. Investors also awaited ADP payroll data due tonight and the US government's official jobs report due on Friday for further clues on whether the Federal Open Market Committee would raise interest rates at the upcoming meeting on June 14-15. Chinese shares eked out modest gains even as weak factory activity readings brought global growth worries back at center stage. Japanese shares saw their biggest drop in one month as Brexit fears and disappointment over the lack of fresh stimulus plans to boost growth lifted the yen to a two-week high against the dollar. Prime Minister Shinzo Abe disappointed investors by failing to provide details of a fiscal stimulus package when he announced his widely-expected decision to delay the planned sales tax hike for a second time.