Post Session: Quick Review

Indian equity benchmarks traded on a firm note throughout the day and ended with gain of around nine tenth of a percent. The market breadth was mildly in favour of advances with four stocks advancing against every three declining ones. Indian equity benchmarks made an optimistic start and traded in fine fettle in early deals with frontline gauges recapturing their crucial levels. Traders took some support with a private poll showing that India’s economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending. This suggests that disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July are fading. Separately, Union Minister Parshottam Rupala said that the Centre was making concerted efforts to double the income of farmers by 2022 and asked scientists, and others concerned to tackle the challenges being faced by the agriculture sector. Some support also came with Railway and Coal minister Piyush Goyal’s statement that the government is thinking of 360 degree solutions in terms of setting things in order for infrastructure sector. The markets also got boost with the report that Commerce and industry ministry has appointed four institutes, including IIFT and ICAI, to interact with stakeholders and suggest measures to push India’s ranking in ease of doing business index.

Meanwhile, some support also came with a private report highlighting that focus on investments, productivity will lead to sustainable growth rate. According to the report, India needs to industrialize further and target 25 per cent of GDP pie for manufacturing sector by 2025 in order to achieve double-digit investment growth and create jobs for its swelling labour force. However, IT stocks were under pressure as rupee bounces back against the US dollar. Additionally, raising some concerns among the Indian techies, US President Donald Trump’s administration has came out with a new H1B visas policy memorandum. The new policy with tougher rules makes the procedure of issuing H-1B visas more difficult to those to be employed at one or more third-party worksites. 

On the global front, Asian markets closed mostly in green. China’s manufacturing sector likely posted another month of relatively solid growth in February, despite long Lunar New Year holidays and a tough pollution crackdown which disrupted factory operations. A poll showed that Taiwan’s export orders in January are expected to rise for the 18th straight month but at a slower pace than in December, as demand for the island’s technology products remained robust. The European markets were trading in green as focus gradually shifts from the earnings season to monetary policy and politics this week with Italy’s general election on Sunday.

Back home, select stocks from commodity chemicals were buzzing with Chemicals Export Promotion Council (CHEMEXCIL) chairman Satish Wagh’s statement that the chemicals industry is expected more than double and touch $300 billion by 2025 from $147 billion now. The chairman added that the industry is also targeting chemical exports of $18 billion by 2020 from $12 billion in FY17.

The BSE Sensex ended at 34451.21, up by 309.06 points or 0.91% after trading in a range of 34225.72 and 34477.59. There were 24 stocks advancing against 7 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.72%, while Small cap index was up by 0.88%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 3.11%, Auto up by 2.29%, Capital Goods up by 1.93%, Industrials up by 1.75% and Bankex up by 1.64%, while IT down by 1.20%, TECK down by 0.76%, FMCG down by 0.05% and Healthcare down by 0.02% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 3.74%, Tata Motors up by 3.36%, IndusInd Bank up by 3.35%, Larsen & Toubro up by 3.06% and Tata Motors - DVR up by 2.85%. (Provisional)

On the flip side, Sun Pharma down by 2.66%, TCS down by 1.50%, Infosys down by 1.49%, ITC down by 1.08% and Wipro down by 0.90% were the top losers. (Provisional)

Meanwhile, raising some concerns among the Indian techies, US President Donald Trump’s administration has came out with a new H1B visas policy memorandum. The new policy with tougher rules makes the procedure of issuing H-1B visas more difficult to those to be employed at one or more third-party worksites. This move is expected to impact Indian Information Technology (IT) companies as they are among the major users of this visa.

As per the new policy, Indian IT companies will have to furnish detailed documentation and more evidence to prove that their H1B employees deployed at third-party worksites have specific and non-qualifying speculative assignments in speciality occupation. The new policy empowers the US Citizenship and Immigration Services (USCIS) to issue H-1B visas to an employee for only the period he/she has work at a third-party worksite, reversing the tradition of issuing H-1B visa for 3 years at a time. It has also made the process of extension of H-1B visas more difficult.

The new policy announcement is a part of President Trump’s ‘Buy American and Hire American Executive Order’ and the directive to protect the interests of US workers, which seeks to create higher wages and employment rates for US workers and to protect their economic interests by rigorously enforcing and administering our immigration laws.

The CNX Nifty ended at 10577.95, up by 86.90 points or 0.83% after trading in a range of 10520.20 and 10592.95. There were 38 stocks advancing against 12 stocks declining on the index. (Provisional)

The top gainers on Nifty were Maruti Suzuki up by 4.04%, Tata Motors up by 3.46%, Larsen & Toubro up by 3.10%, IndusInd Bank up by 3.07% and UPL up by 2.90%. (Provisional)

On the flip side, Sun Pharma down by 2.55%, TCS down by 1.60%, Tech Mahindra down by 1.49%, Infosys down by 1.48% and Wipro down by 1.14% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 17.79 points or 0.25% to 7,262.20, Germany’s DAX increased 69.08 points or 0.55% to 12,552.87 and France’s CAC increased 28.87 points or 0.54% to 5,346.24.

Asian markets closed mostly in green on Monday as oil prices climbed and the Federal Reserve's monetary policy report released on Friday suggested a gradual pace of interest rate hikes in 2018. US bond yields declined from recent four-year highs as investors awaited US inflation data and the first House testimony by the new head of the Federal Reserve for further insight on inflation and interest rates. Japanese shares rallied on the back of sharp rises in US stocks on Friday. Further, Chinese shares ended higher, with major indexes climbing for a sixth session in a row, led by start-ups which saw their best day in seven months on expectations they will benefit from a proposal to delay reforms for initial public offerings (IPOs). Market participants were also keeping a close watch on the impact of certain amendments in the wording of China’s constitution.