Post Session: Quick Review

Indian equity indices staged a magnificent performance extending the yesterdays rally, conquering important psychological levels. The buying across the board pushed market benchmark Nifty past 9300 mark and Bank Nifty above 22000 mark for first time ever. Sentiment was bolstered by a string of optimistic quarterly results including Reliance Industries (RIL) announced yesterday post market hours. For the March quarter, RIL’s consolidated net profit rose 12.3% to Rs 8,046 crore, against Rs 7,167 crore for the same period a year ago. Its turnover in the March quarter rose 45.2% year-on-year to Rs 92,889 crore, largely meeting street expectations for net profit. Positive Asian cues and a higher opening in European markets too added to the momentum. The equity benchmarks made a gap-up opening and traded jubilantly in early deals taking support from Finance Minister Arun Jaitley’s statement that India will continue to grow at 7-8 percent rate, an absolute normal for the nation under the current global environment. Jaitley said as far as the economy is concerned, all the decisions taken by the Modi-Government are consistently in one direction. Jaitley enlightened while speaking at the Council on Foreign Relations that all economic parameters in terms of fiscal prudence, fiscal deficit, current account deficit, inflation control, have been quite encouraging. They have never been so good as far as India is concerned.

Meanwhile, Niti Aayog vice chairman Arvind Panagariya expressed his confidence that the size of the Indian economy will see over three-fold expansion at $7.25 trillion by 2030 and clock an average growth rate of 8 percent in rupee and 10 per cent in dollar terms, over the next 15 years. He also noted that in 2015-16 the country’s GDP stood at $2.11 trillion. Sentiments also remained upbeat as the Bihar assembly in a special session unanimously passed the Goods and Services Tax Bill, 2017. Prime Minister Narendra Modi has said the consensus on Goods and Services Tax (GST) reflects the spirit of ‘one nation, one aspiration, one determination’. Meanwhile,  Revenue Secretary Hasmukh Adhia assured consumers that the prices of neither goods nor services will see an increase under the goods and services tax (GST) due to higher incidence of tax. Infact, prices of most goods are likely to reduce, while those of services will remain at the same level. The market may remain volatile this week as traders may roll over positions in the Futures & Options (F&O) segment from the near month i.e. April 2017 series to next month i.e. May 2017 series. The near month April 2017 derivatives contracts will expire on Thursday i.e. April 27, 2017.

On the global front, Asian markets closed in green, with some markets at multi-year highs on continued upbeat sentiment after the first round of France’s presidential election stoking a relief rally, though regional investors kept a close eye on the Korean peninsula. China’s registered urban unemployment rate fell below 4 percent for the first time in years, in a hopeful sign slower economic growth is not creating the massive unemployment Beijing fears will sow social instability. European markets were trading mostly in green on easing fears over a possible French exit from the euro zone. In a session lacking in major economic reports, French business confidence unexpectedly increased in April, hitting its highest level in almost six years.

The BSE Sensex ended at 29926.10, up by 270.26 points or 0.91% after trading in a range of 29780.84 and 29961.82. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.01%, while Small cap index was up by 0.54%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 2.41%, FMCG up by 1.75%, Realty up by 1.18%, Auto up by 1.11% and Oil & Gas up by 1.11%, while there were no losers on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 3.79%, Mahindra & Mahindra up by 3.31%, Bharti Airtel up by 3.07%, Hero MotoCorp up by 2.93% and Asian Paints up by 2.40%. (Provisional)

On the flip side, Cipla down by 0.93%, TCS down by 0.82%, NTPC down by 0.51%, GAIL India down by 0.50% and HDFC Bank down by 0.08% were the top losers. (Provisional)

Meanwhile, moving on the way of becoming self-sufficient in fuel, the government is planning to cut oil products imports to zero by giving a boost to alternative fuel use. Transport Minister Nitin Gadkari has said that the centre is trying its level best to reduce imports of fuel and is turning to alternative fuels such as methanol in the transport sector.

Gadkari also said that with focus on developing alternative fuel economy, government is planning to start 15 factories to produce second generation ethanol from biomass, bamboo and cotton straw, as it aims to develop its mandate to blend ethanol into 5 percent of gasoline. New Delhi also wants to raise the use of natural gas in its energy mix to 15 percent in three to four years from 6.5 percent now, to cut the country's carbon footprint.

At present, India is the world's third-biggest oil consumer, importing about 33 million tonnes of oil products over April 2016 to February 2017, up nearly 24 percent from the same period a year ago. Going further, energy consumption of the country is expected to grow as it targets between 8 to 9 percent economic growth this fiscal year from around 7 percent in 2016/17.

The CNX Nifty ended at 9303.20, up by 85.25 points or 0.92% after trading in a range of 9250.35 and 9309.20. There were 37 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bharti Infratel up by 4.70%, Axis Bank up by 4.00%, BPCL up by 3.55%, Mahindra & Mahindra up by 3.35% and Indian Oil Corporation up by 3.31%. (Provisional)

On the flip side, Tata Power down by 1.10%, Cipla down by 1.09%, TCS down by 0.78%, Aurobindo Pharma down by 0.76% and NTPC down by 0.72% were the top losers. (Provisional)

The European markets were trading mostly in green; UK’s FTSE 100 increased 11.66 points or 0.16% to 7,276.34, France’s CAC increased 12.86 points or 0.24% to 5,281.71, while Germany’s DAX decreased 8.03 points or 0.06% to 12,446.95.

Asian equity markets ended in green on Tuesday as European political risks faded and oil prices rebounded after six consecutive sessions of losses. Meanwhile, investors kept a wary eye on North Korea as the country celebrates the 85th anniversary of the Korean People's Army, amid signs Pyongyang could soon conduct another nuclear test in defiance of United Nations sanctions. Japanese shares ended higher as the yen weakened amid easing fears over the risk of a French exit from the currency union. Chinese shares steadied after steep losses the previous day amid concerns over the regulatory crackdown on shadow banking.