Markets continue to trade firm in late afternoon session

Indian equity benchmarks continued to trade firm, but in tight band in late afternoon session with gains of around half a per cent each, supported by positive European markets and healthy buying in Metals, Basic Materials and Consumer Durables stocks. Investors remained optimistic with the International Monetary Fund (IMF) latest report that India’s economic growth is likely to improve, once impact of the cash shortage linked to the currency exchange move fades. The report also expects the fiscal deficit to continue to shrink in the near-term. Some support also came with the report that India's merchandise exports expanded for the sixth consecutive month in February. Exports grew by 17.48 percent to $24490.27 million in February 2017, on the back of a jump in the value of shipments of engineering goods and petroleum products. Besides, the trade deficit widened to $8896.30 million in February as against $6573.25 million in February 2016. On sectoral front, some of infrastructure companies stocks were trading in green with private report stating that India's transport infrastructure will grow at higher rates over the next five years on account of a string of measures, including increased spending on road and rail projects. It added that other factors that will propel growth rates include reform measures and new policies, encouraging private participation.

On the global front, European markets were trading in green as investors took the Fed's widely-anticipated interest rate hike in their stride and results from the Dutch election pointed to a comfortable win by the prime minister, helping ease concerns about the rise of far-right and populist parties in Europe, as France and Germany go the polls over the next half year. Asian markets were trading in green after the Federal Reserve sounded less hawkish than expected. Back home, in scrip specific development, Acrysil jumped higher after the company signed Memorandum of Understanding (MoU) with a foreign customer for supply of Granite Kitchen Sinks, estimated value of Rs 45 crore, over a period of 3 years.

The BSE Sensex is currently trading at 29531.97, up by 133.86 points or 0.46% after trading in a range of 29482.83 and 29614.79. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.32%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were Metal up by 2.70%, Consumer Durables up by 1.84%, Basic Materials up by 1.63%, Industrials up by 1.43% and Power up by 1.37%, while there were no losing indices on the BSE.

The top gainers on the Sensex were Tata Steel up by 3.94%, Adani Ports & SEZ up by 3.86%, Asian Paints up by 1.88%, NTPC up by 1.39% and Tata Motors up by 1.30%. On the flip side, Hero MotoCorp down by 1.62%, Bharti Airtel down by 0.76%, ICICI Bank down by 0.47%, Reliance Industries down by 0.35% and Coal India down by 0.22% were the top losers.

Meanwhile, the International Monetary Fund (IMF), in its latest report 'Global Prospects and Policy Challenges' has said that India’s economic growth is likely to improve, once impact of the cash shortage linked to the currency exchange move fades. The report also expects the fiscal deficit to continue to shrink in the near-term.

In order to attain medium-term fiscal consolidation plans, the report has said that emphasis is needed on various measures such as subsidy reduction and tax reforms, including a robust design and full implementation of the Goods and Services Tax (GST) to achieve these fiscal consolidation plans.

The report further noted that the steps has been taken by emerging economies like India to reduce excessive corporate leverage and improve bank's balance sheets or adoption of more prudent risk-management practices, including to reduce currency and maturity balance sheet mismatches, which will help reduce vulnerabilities to global financial conditions, possible capital outflows, and sharp currency movements.

The CNX Nifty is currently trading at 9139.10, up by 54.30 points or 0.60% after trading in a range of 9128.55 and 9152.90. There were 43 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ by 3.80%, Tata Steel up by 3.77%, Hindalco up by 3.59%, Indusind Bank up by 2.20% and Aurobindo Pharma up by 2.02%. On the flip side, Hero MotoCorp down by 1.61%, Bharti Airtel down by 0.87%, Reliance Industries down by 0.40%, Zee Entertainment down by 0.38% and ICICI Bank down by 0.32% were the top losers.

All Asian markets were trading in green; Nikkei 225 increased 12.76 points or 0.07% to 19,590.14, KOSPI Index increased 17.08 points or 0.8% to 2,150.08, FTSE Bursa Malaysia KLCI increased 17.49 points or 1.02% to 1,734.85, Shanghai Composite increased 27.18 points or 0.84% to 3,268.94, Jakarta Composite increased 58.35 points or 1.07% to 5,490.73, Taiwan Weighted increased 97.52 points or 1% to 9,837.83 and Hang Seng increased 495.43 points or 2.08% to 24,288.28.

All European Markets were trading in green; France’s CAC increased 42.73 points or 0.86% to 5,028.21, UK’s FTSE 100 increased 53.14 points or 0.72% to 7,421.78 and Germany’s DAX increased 139.62 points or 1.16% to 12,149.49.