Markets continue upbeat trend in late afternoon session

Indian equity benchmarks continued to maintain their upbeat trend in late afternoon session, supported by healthy buying in Capital Goods, Industrials and Energy stocks. The benchmark indices Sensex and Nifty reclaimed their psychological 29,850 and 9,200 levels respectively. Higher opening in European markets also gave a fillip to the local markets. There were also hopes that Goods and Services Tax (GST) bills scheduled for discussion this week in Rajya Sabha will get passed soon. Sentiments remained optimistic with the report that manufacturing sector activity rose to a five-month high in March due to a sharp rise in production and new orders. Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose to 52.5 in March from 50.7 in February. Investors were taking encouragement from the start of the session with Finance Minister Arun Jaitley’s statement that Indian economy is expected to grow at 7.2 percent in 2017 and at the rate of 7.7 percent in 2018. Some support also came with the report that India's end-December external debt was at $456.1 billion, down $28.1 billion from end-September, largely driven by a decline in long-term debt.

On the global front, European markets were trading in green as investors eyed trade and economic policies in the U.S. and looked ahead to new economic data. Asian markets were also trading in green. Back home, in scrip specific development, Bharat Heavy Electricals (BHEL) jumped higher after the company commissioned the 500 MW Unit-6 of NTPC’s Feroze Gandhi Unchahar Thermal Power Plant (FGUTPP) in Uttar Pradesh.

The BSE Sensex is currently trading at 29867.71, up by 247.21 points or 0.83% after trading in a range of 29705.72 and 29868.63. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.64%, while Small cap index was up by 1.21%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.69%, Industrials up by 1.70%, Energy up by 1.70%, Basic Materials up by 0.84% and Consumer Durables up by 0.77%, while Telecom down by 1.31%, TECK down by 0.98% and IT down by 0.87% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.92%, Larsen & Toubro up by 3.90%, ICICI Bank up by 3.25%, GAIL India up by 2.26% and Axis Bank up by 2.07%. On the flip side, Bharti Airtel down by 3.21%, Wipro down by 1.62%, Infosys down by 1.16%, Bajaj Auto down by 0.98% and HDFC Bank down by 0.75% were the top losers.

Meanwhile,  signaling further improvement in the manufacturing sector, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI)-a composite single-figure indicator of manufacturing performance-rose to a five-months high in March owing to increase in production and new orders. The PMI stood at 52.5 in March 2017 compared to 50.7 in February 2017.

As per survey report, incoming new orders expanded at a stronger pace, thereby leading to quicker increase in production and input purchasing. Moreover, reversing the decline noted in February, manufacturing jobs rose in March as some firms hired additional employees in line with efforts to expand capacity. The report further said that even though both input costs and output charges rose further, inflation rates softened from those seen in February.

Further, the survey found that business confidence among manufacturers also improved in March, with almost one-fifth of panellists expecting output levels at their units to be higher in 12 months’ time. Forecasts of a pick-up in demand and the launch of new product lines were the main factors underpinning optimism. Average input costs increased again, largely reflecting higher commodity prices. Indian manufacturers purchased greater quantities of inputs for use in the production process during March, with the latest upturn in buying levels the strongest in the current three-month sequence of expansion.

The CNX Nifty is currently trading at 9224.15, up by 50.40 points or 0.55% after trading in a range of 9192.40 and 9225.05. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 4.12%, Reliance Industries up by 3.65%, ICICI Bank up by 3.27%, Axis Bank up by 2.15% and GAIL India up by 2.11%. On the flip side, Bharti Airtel down by 3.26%, Indian Oil Corporation down by 1.83%, HCL Tech. down by 1.69%, Wipro down by 1.60% and BPCL down by 1.57% were the top losers.

All the Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 4.13 points or 0.24% to 1,744.22, KOSPI Index increased 7.28 points or 0.34% to 2,167.51, Jakarta Composite increased 24.45 points or 0.44% to 5,592.55, Nikkei 225 increased 73.97 points or 0.39% to 18,983.23 and Hang Seng increased 149.89 points or 0.62% to 24,261.48.

European markets were trading mostly in green; UK’s FTSE 100 increased 1.49 points or 0.02% to 7,324.41 and Germany’s DAX increased 27.01 points or 0.22% to 12,339.88. On the flip side, France’s CAC decreased 4.74 points or 0.09% to 5,117.77.