Post Session: Quick Review

Indian equity benchmarks traded in green territory throughout the day and ended with decent gains. The last hour of trade helped Nifty gain more than 100 points, while Sensex surpassed 33,200 mark. The market breadth was in favour of advances with 5 stocks advancing against each declining ones. The street is eyeing Reserve Bank of India (RBI) policy meeting outcome which is scheduled on April 4-5 where the Central Bank is likely to keep benchmark rates unchanged while signposting concerns over oil prices and food inflation at its first bimonthly policy review in the new financial year. A private poll showed that the central bank may be headed into an extended pause on rate action even though the US Federal Reserve is penciling in higher borrowing costs in the world’s biggest economy toward the latter half of the year. Indian equity benchmarks made a positive start and traded slightly in green in early deals on Monday with Niti Aayog CEO Amitabh Kant’s statement that India will reap benefits of the structural and institutional reforms in the next couple of years. Besides, he is expecting creation of a large number of jobs in education and health sector, with the clearance for amendments to the new Medical Council Bill. Separately, some support also crept in with State Bank of India’s (SBI) research report Ecowrap stating that the Index of Industrial Production (IIP) may grow in the range of 8-9% in February and March 2018, with a healthy growth in SBI Composite Index, an indicator for tracking India's manufacturing activity.

On sectoral front, power companies were buzzing in today’s trade on report that power companies are expecting better margins this summer owing to higher electricity demand on the back of rising temperatures earlier than previous years. Meanwhile, weathermen have predicted harsh summer this year. The Met Department has forecast warmer-than-normal temperatures till May in various parts of the country. Investors shrugged off report that India’s fiscal deficit, the difference between government expenditure and revenue, has accelerated to Rs 7.15 lakh crore for the period April-February 2017-18. Separately, rating agency CRISIL warned that the ongoing probes into the frauds and allegations of improprieties against bankers will dent credit growth in the new fiscal year. The agency expects gross NPAs to shoot up to 11 percent in the March quarter from 9.4 percent a year ago, and inch up further to hit a peak of 11.5 percent during the fiscal but will slip to 10.3 percent in March 2019.

On the global front, Asian markets closed mostly in red. China’s manufacturing activity expanded at its weakest pace in four months in March as export demand faltered, prompting companies to shed staff more quickly as they looked to cut costs. The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) fell to 51.0 in March from February’s 51.6. Japanese business sentiment worsened for the first time in two years in the three months to March, a closely watched central bank survey showed, as rising raw materials and labor costs weigh on an otherwise steady economic recovery. The European markets were closed on account of ‘Easter Monday’ holiday.

Back home, oil marketing companies Indian Oil Corporation and Bharat Petroleum Corporation closed in red as crude oil prices surged after data showed that the number of US oil rigs declined surprisingly. Crude oil is the primary raw material and an increase in its price means that these companies will have to procure the raw material at a higher premium. This will increase their operating cost thus affecting their operating profits and operating margins.

The BSE Sensex ended at 33263.08, up by 294.40 points or 0.89% after trading in a range of 32997.88 and 33289.34. 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 1.39%, while Small cap index was up by 2.38%. (Provisional)

The top gaining sectoral indices on the BSE were Industrials up by 2.51%, Healthcare up by 2.42%, Auto up by 2.14%, Capital Goods up by 2.02% and Basic Materials up by 1.99%, while Bankex down by 0.37%, Oil & Gas down by 0.07% and PSU down by 0.06% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Kotak Mahindra Bank up by 4.73%, Adani Ports & Special Economic Zone up by 4.30%, Tata Motors up by 3.62%, Wipro up by 3.11% and Tata Motors - DVR up by 3.07%. (Provisional)

On the flip side, ICICI Bank down by 5.77%, Axis Bank down by 2.18%, Coal India down by 1.82%, SBI down by 1.52% and Bharti Airtel down by 1.18% were the top losers. (Provisional)

Meanwhile, hailing the government’s various reforms including recent approval to a new Medical Council Bill, Niti Aayog CEO Amitabh Kant has said that India will reap benefits of the structural and institutional reforms in the next couple of years. Besides, he is expecting creation of a large number of jobs in education and health sector, with the clearance for amendments to the new Medical Council Bill.

Kant noted that the government has an agenda for a big push for this kind of changes in the economy and highlighted implementation of India's biggest tax reform- the Goods and Services Tax (GST). He added that the country has opened up its economy in a big way and the result of this, now it attracts the highest foreign direct investment (FDI).

In addition to its institutional and structural reforms, the Union Cabinet had approved certain amendments to the National Medical Commission (NMC) Bill, including removing of the contentious provision of bridge course. It also approved that the final MBBS examination will be held as a common exam throughout the country and will serve as an exit test to be called the National Exit Test (NEXT).

The CNX Nifty ended at 10216.85, up by 103.15 points or 1.02% after trading in a range of 10127.75 and 10220.10. There were 40 stocks advancing against 10 stocks declining on the index. (Provisional)

The top gainers on Nifty were Cipla up by 5.67%, Lupin up by 5.57%, Kotak Mahindra Bank up by 4.53%, Adani Ports & Special Economic Zone up by 4.36% and Tata Motors up by 4.02%. (Provisional)

On the flip side, ICICI Bank down by 5.86%, Indian Oil Corporation down by 3.43%, Axis Bank down by 2.17%, SBI down by 1.62% and Coal India down by 1.55% were the top losers. (Provisional)

Asian stocks closed mostly in red on Monday with muted trading as markets in Hong Kong were closed for the Easter holiday. US financial markets will open later today following Easter while European financial markets will be closed in observance of Easter Monday. Japanese shares closed lower after a closely-watched survey showed deteriorating business confidence in the first quarter. Japan's business confidence deteriorated in the first quarter on stronger yen and fears of trade war, the quarterly Tankan survey released by the Bank of Japan revealed. The business confidence index among large manufacturers dropped to 24 in March from 26 in December. This was the first fall in two years. Further, Chinese shares ended lower after manufacturing data out of China painted a mixed picture of the world's second-largest economy and China imposed tariffs on 128 types of US imports starting Monday. While official data pointed to accelerating growth in manufacturing activity in March, the Caixin survey revealed that China's manufacturing activity grew at its slowest pace in four months in the month.