Indian benchmarks notch fresh closing highs for the third straight session

Domestic frontline indices went through a choppy session of trade to finally negotiate a close in the green territory, as a strong rupee and healthy buying in metal and automobile stocks buoyed investors' sentiments. Further, the continued buying from FII and announcement of good quarterly results by some blue-chip companies kept a positive vibe in the market. Adding the optimism of investors, senior UN economic official has said demonetisation policy is not expected to have a long-term impact on domestic demand in India, which is projected to clock a 7.9% growth in fiscal 2018. Also, the Union Finance Minister Arun Jaitley said that government’s move to demonetise Rs 500 and Rs 1,000 notes has helped the authorities bring 9.1 million people under the tax net as money has lost its anonymity.

Markets exhibited sideways pattern as traders were adopting a cautious approach ahead of a crucial GST (Goods and Services Tax) panel meet in Srinagar starting tomorrow. Besides, negative trend was seen in global markets, amid ongoing political uncertainty in the US, capping the gains. However, investors' sentiments got some support with Indian Meteorological department’s (IMD) statement that the southwest monsoon will hit Kerala on May 30, two days ahead of schedule. The onset of southwest monsoon over Kerala signals the arrival of monsoon over the Indian subcontinent.

Meanwhile, power stocks gained after the CCEA approved a new coal linkage policy to ensure adequate supply of the fuel to power plants through reverse auction. Buying intensified in metal stocks after India Ratings and Research said that the National Steel Policy 2017 announced by the Ministry of Steel will give a boost to the struggling Indian steel industry and it is betting on higher spending on infrastructure and construction sector through government initiatives to push steel demand and increase utilization. The policy focuses on improvement in the efficiency parameters so as to reduce the cost of production and develop advanced steel products to reduce the dependence on imports.  Also, Finance Ministry imposed a definitive anti-dumping duty on ‘aluminium foil’ imports from China, giving some relief to local manufacturer. Based on the recommendations of the Designated Authority in the Commerce Ministry, the revenue department levied an antidumping duty that ranged from $0.69 per kilogram to $1.63 per kilogram.

On the global front, Asian markets ended lower on Wednesday, as investors remained cautious about US President Donald Trump’s ability to push through his economic agenda following accusations that he tried to quash an FBI probe. Fresh reports emerged of President Donald Trump's interference in the Federal Bureau of Investigation's probe around his former National Security Advisor Michael Flynn. The latest development adds to the ongoing political turmoil after a report that the US president shared terrorism intelligence with Russian officials, an action he has since defended. Further, Japanese market edged lower after the dollar eased against the yen on weak US economic data, while financials stocks underperformed hit by lower US yields. Also, Japan's core machinery orders fell short of expectations in March from the previous month. Core orders, regarded as a leading indicator of capital spending in the coming six to nine months, rose 1.4% in March from the previous month.

Back home, after getting a cautious start, the local benchmarks traded in tight range near neutral line for most part of the session, but managed to end the day on optimistic note.  Finally, the NSE's 50-share broadly followed index - Nifty settled with modest gains of thirteen points above the psychological 9,500 levels, while Bombay Stock Exchange's Sensitive Index - Sensex gained quarter percent and closed above the psychological 30,600 mark. The market breadth remained pessimistic, as there were 1269 shares on the gaining side against 1531 shares on the losing side, while 172 shares remained unchanged.

Finally, the BSE Sensex gained 76.17 points or 0.25% to 30658.77, while the CNX Nifty was up by 13.50 points or 0.14% to 9,525.75. 

The BSE Sensex touched a high and a low of 30692.45 and 30519.14, respectively and there were 17 stocks on gainers side as against 13 stocks on the losers side on the index.

The broader indices ended in red; the BSE Mid cap index declined 0.02%, while Small cap index was down by 0.18%.

The top gaining sectoral indices on the BSE were Metal up by 2.37%, Telecom up by 0.89%, Auto up by 0.57%, Basic Materials up by 0.53% and Industrials up by 0.32%, while Consumer Durables down by 0.76%, Oil & Gas down by 0.37%, Healthcare down by 0.30%, Energy down by 0.25% and PSU down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 7.95%, Tata Motors up by 2.82%, ICICI Bank up by 2.35%, TCS up by 0.99% and Asian Paints up by 0.88%. On the flip side, Wipro down by 1.70%, Adani Ports & SEZ down by 1.40%, Cipla down by 0.94%, HDFC down by 0.89% and ITC down by 0.56% were the top losers.

Meanwhile, Indian government has expressed hope that US’ review of the H-1B visa regime would take into account the contribution of Indian companies to American businesses along with the positive bilateral relations between the two countries. 

Information Technology (IT) Secretary Aruna Sundararajan has said that concerns on visa changes were ‘premature’ as the US administration has merely initiated a review and no action has been taken yet to curb the number of such work permits to Indian companies. However, she also expressed hope that when the US government does the meeting for review of the H1-B visa regime, they will take into account what has been value added by Indian companies. 

IT secretary further highlighted that only 17% of the total 85,000 visas go to Indian companies, and that a very large number of US companies actually ride on the back of the services provided by the Indian companies. She also said that the Indian government is already in very close co-ordination with the US authorities, and the value proposition and the partnership India has with the US is well known. She added that any changes or any review will be built on that foundation.

The CNX Nifty traded in a range of 9,532.60 and 9,486.10. There were 23 stocks in green as against 28 stocks in red on the index.

The top gainers on Nifty were Tata Steel up by 8.07%, Bharti Infratel up by 3.29%, Indiabulls Housing up by 3.03%, Tata Motors up by 2.66% and ICICI Bank up by 2.25%. On the flip side, Tech Mahindra down by 2.96%, ACC down by 2.29%, Bosch down by 1.94%, Yes Bank down by 1.89% and Adani Ports & SEZ down by 1.57% were the top losers.

The European markets were trading in red; UK’s FTSE 100 decreased 2.08 points or 0.03% to 7,519.95, Germany’s DAX decreased 52.55 points or 0.41% to 12,751.98, while France’s CAC decreased 31.15 points or 0.58% to 5,374.95.

Asian equity markets ended in red on Wednesday as oil prices fell on data showing rising US crude inventories and safe-haven assets such as the yen and gold inched higher on renewed worries about political situation in the US. The US political turmoil intensified after it emerged that President Donald Trump has tried to quash a Federal Bureau of Investigation probe against his former National Security Advisor James Flynn. Also, Trump took to Twitter to defend his sharing of what is reportedly highly classified information with Russia during an Oval Office meeting last week, saying he had the ‘absolute right’ as president to give 'facts pertaining to terrorism and airline flight safety' in the fight against ISIS and terrorism. Japanese shares ended lower as the dollar eased against the yen on weak US economic data, while financial stocks underperformed hit by lower US yields. Domestic economic reports also painted a mixed picture of the economy, with core machinery orders falling short of expectations in March, while industrial output declined less than initially estimated in the month. Further, Chinese shares snapped a four-day winning streak as concerns over regulatory crackdown lingered.