Markets continue to trade marginally higher

Indian equity benchmarks continued to trade in positive territory with small gains in late afternoon session amid lack of clear direction from global markets. Investors remained optimistic with the private report that a normal monsoon this year should continue to revive rural demand and allow the Reserve Bank of India (RBI) to cut rates by 0.25 percent in August. Some support also came with the report that investments in domestic capital markets via participatory notes (P-notes) have surprisingly surged to 4-month high of Rs 1.78 lakh crore at the end of March despite stringent norms put in place by Sebi to curb inflow of illicit funds. Besides, select public sector banking stocks were trading higher with the ICRA’s report that the RBI’s recent revision in the prompt corrective action (PCA) framework is positive for banking sector, given the operating and financial profile of some of the banks. However, some caution prevailed over the ongoing fourth quarter results season, coupled with weak rupee against dollar. The rupee was trading at 64.62, 6 paise weaker from its previous close of 64.58 on Wednesday.

On the global front, European markets were trading in green as investors continued to weigh current political uncertainties and digested fresh corporate earnings. Asian markets were trading mixed. Back home, in scrip specific development, Network18 Media & Investments was trading higher after the company received an in-principle approval to sell/ transfer/ otherwise dispose off or transfer BURRP to any other entity including a related party/ getting a strategic investor.

The BSE Sensex is currently trading at 29375.81, up by 39.24 points or 0.13% after trading in a range of 29341.68 and 29453.06. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.51%, while Small cap index was up by 0.97%.

The top gaining sectoral indices on the BSE were Realty up by 1.87%, Consumer Durables up by 1.19%, Basic Materials up by 1.12%, Consumer Disc up by 0.75% and Industrials up by 0.68%, while Bankex down by 0.47%, Energy down by 0.42%, Telecom down by 0.37%, Oil & Gas down by 0.32% and Healthcare down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.00%, GAIL India up by 1.75%, Adani Ports & SEZ up by 1.44%, Bajaj Auto up by 1.09% and HDFC Bank up by 1.00%. On the flip side, ICICI Bank down by 2.47%, Axis Bank down by 1.73%, Sun Pharma down by 1.27%, Power Grid Corporation down by 1.14% and Coal India down by 1.10% were the top losers.

Meanwhile, with an aim to transform the country into a global steel leader, both as steel producer and steel consuming nation, the steel ministry will soon seek Cabinet nod for a proposed new national steel policy, which seeks to more than double India’s domestic steel production capacity to 300 million tonnes (mt) by 2030 from the current 126 million tonnes (mt).

The proposed policy focuses on impediments like raw material availability, import dependency, production cost and also seeks to increase focus on expansion of the MSME sector, enhance research and development (R&D) and thus develop a technologically advanced and globally competitive industry that promotes economic growth.

The steel ministry expects that the steel demand will continue to grow this year,  given the stress on the infrastructure sector and noted that the country need to increase steel production by 10 per cent, exports by 103 per cent and massively reduce imports this year. The domestic crude steel production grew by 8.5 per cent at 97.38 mt in fiscal 2017, while consumption grew from 81.5 mt to 83.9 mt. Export of finished steel rose 102.1 per cent to 8.244 mt while imports fell 36 per cent to 7.4 mt during the year.

The CNX Nifty is currently trading at 9119.60, up by 16.10 points or 0.18% after trading in a range of 9102.65 and 9143.90. There were 31 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 4.73%, Bank of Baroda up by 2.32%, Indiabulls Housing Finance up by 2.15%, GAIL India up by 2.01% and HDFC up by 2.00%. On the flip side, Yes Bank down by 3.98%, ICICI Bank down by 2.16%, Indian Oil Corporation down by 1.99%, Tata Power down by 1.93% and Axis Bank down by 1.76% were the top losers.

Asian markets were trading mixed; Shanghai Composite increased 1.41 points or 0.04% to 3,172.10, FTSE Bursa Malaysia KLCI increased 3.62 points or 0.21% to 1,742.57, KOSPI Index increased 10.75 points or 0.5% to 2,149.15 and Hang Seng increased 231.1 points or 0.97% to 24,056.98. On the flip side, Jakarta Composite decreased 11.43 points or 0.2% to 5,595.09, Taiwan Weighted decreased 7.25 points or 0.08% to 9,632.69 and Nikkei 225 decreased 1.71 points or 0.01% to 18,430.49.

All European markets were trading in green; UK’s FTSE 100 increased 1.64 points or 0.02% to 7,116.00, Germany’s DAX increased 2.54 points or 0.02% to 12,018.99 and France’s CAC increased 30.92 points or 0.62% to 5,034.65.