Post Session: Quick Review

Indian equity benchmarks traded choppy for most part of the day but buying by participants in last hour of trade helped markets to end above neutral lines, with key gauges reclaiming their crucial levels of 33,000 (Sensex) and 10,100 (Nifty). The markets made a cautious start in early deals on Assocham’s report that the escalation of global trade protectionist measures into a full-scale global trade war will damage the Indian economy as well. A full-scale global trade war will impact the country’s exports and enlarge its current account deficit (CAD). Afterwards, markets traded choppy on report that the country’s foreign exchange reserves decreased marginally by $152.4 million to $421.334 billion in the week to March 16, on account of a fall in foreign currency assets. In the previous week, the reserves had increased by $728.9 million to $421.487 billion. The reserves had touched a life-time high of $421.914 billion on February 9, FY18. However, markets trimmed all of their initial losses and entered into positive terrain, after report that the United States and China have quietly started negotiations to improve US access to Chinese markets eased fears of a trade war between the two economic giants. Buying got accelerated after traders took some encouragement with finance ministry stating that India is on track to doubling the size of its economy to $5 trillion by 2025. Economic Affairs Secretary Subhash Chandra Garg said that the country is well poised to click a growth rate of 7-8 percent and with focus on start-ups, MSMEs and infrastructure investment it can step on to higher growth pedestal.

On the global front, Asian markets ended mixed amid mounting fears about U.S.-Chinese trade tensions. Investors also turned cautious after China’s newly appointed central bank chief announced sweeping plans to rein in surging debt and curb financial risks. The European markets were trading in green on Monday amid optimism that the protectionist shift in US trade policy may be more selective and tactical that first feared.

Back home, majority of rural stocks ended higher on report that Indian equity markets are expected to 'struggle' over the next few months, though stocks and sectors related to rural India might perform relatively better. However, shares of state-owned oil & gas companies were under pressure, led by GAIL India which was down by over 3 percent, after the media report suggested that state-owned Oil and Natural Gas Corp (ONGC) may buy out gas utility in its Dahej mega petrochemical project in Gujarat to take full control of the recently commissioned plant.

The BSE Sensex ended at 33086.99, up by 490.45 points or 1.50% after trading in a range of 32515.17 and 33102.41. There were 26 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.42%, while Small cap index was up by 0.64%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.84%, Bankex up by 2.46%, Consumer Durables up by 2.38%, Basic Materials up by 1.81% and Consumer Disc up by 1.60%, while IT down by 0.60%, Oil & Gas down by 0.15% and TECK down by 0.05% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Yes Bank up by 6.12%, SBI up by 5.18%, Tata Steel up by 3.79%, HDFC Bank up by 3.07% and HDFC up by 2.59%. (Provisional)

On the flip side, Wipro down by 4.01%, Infosys down by 1.32%, Tata Motors - DVR down by 0.46%, TCS down by 0.20% and NTPC down by 0.09% were the top losers. (Provisional)

Meanwhile, amid fears of a global trade war after protectionism measures imposed by the US, Commerce and Industry Minister Suresh Prabhu has said that India needs to explore ways to improve exports. He also noted that the world is facing serious challenges with the US taking very strong measures against all its major trading partners including China.

Besides, Prabhu said ‘if any country takes a unilateral action, we will definitely take note of it and we will deal with it appropriately’. He also said that India is a firm believer in a rule-based, transparent and participatory trading system and recently it has invited key World Trade Organization (WTO) member countries to discuss ways to reinvigorate the global trading body.

The Minister further urged all to take initiatives to promote exports, in line with the government’s focus on promoting shipments. He also said that they are trying to explore new markets and products by doing market research. He added that India is also meeting leaders of some African countries to promote exports in the region.

The CNX Nifty ended at 10137.75, up by 139.70 points or 1.40% after trading in a range of 9958.55 and 10143.50. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Yes Bank up by 6.33%, SBI up by 5.28%, Zee Entertainment up by 3.62%, Bajaj Finance up by 3.51% and Vedanta up by 3.44%. (Provisional)

On the flip side, Wipro down by 3.51%, GAIL India down by 3.43%, HPCL down by 1.47%, Infosys down by 1.03% and Bosch down by 0.70% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 18.88 points or 0.27% to 6,940.82, France’s CAC rose 19.27 points or 0.38% to 5,114.49 and Germany’s DAX was up by 70.63 points or 0.59% to 11,956.94.

Asian equity markets ended mixed on Monday as increased tensions between the US and China dented risk appetite and spurred demand for safe-haven assets. Chinese shares ended lower after China's new economy czar, Vice Premier Liu He, reportedly told US Treasury Secretary Steven Mnuchin in a phone call that Beijing was ready to defend itself in an escalating tariff dispute. Japanese shares ended lower as the yen reached a near 17-month high against the dollar on fears of a global trade war and caution towards political developments in Tokyo. Further, the Bank of Japan had likely bought exchange traded funds (ETFs) to support the market, which has been pushed lower by fears of a global trade war.