Markets at day’s high; Sensex gains over 200 points

Key Indian equity benchmarks extended their gains in late afternoon session to trade at their intraday high levels, with the Sensex gaining more than 200 points. Besides, the healthcare stocks remained top gainer on the BSE on the first trading day of the new financial year, while auto stocks such as TVS Motor, Tata Motors and Bajaj Auto led gains after posting strong sales numbers for March 2018. Traders took encouragement with Chief Economic Adviser Arvind Subramanian’s statement that GST and demonetisation are done and India can now propel itself into a higher growth trajectory. Some optimism also came 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. Adding some support to the markets, State Bank of India’s (SBI) research report Ecowrap stated 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.

Meanwhile, Indian companies raised $785 million, up 14% year-on-year, through 39 IPOs in the first quarter this year. As per a private report, BSE's main and SME markets saw 23 IPOs, which raised $739.7 million in Q1 2018, while NSE's main and SME segments had 16 IPOs, which together raised $45 million. In the scrip specific development, Bharat Heavy Electricals (BHEL) moved up on bagging a major order for setting up a 1x660 MW supercritical thermal power plant in Uttar Pradesh, while Damodar Industries gained after it commenced trial production at its new plant situated at T-26, Add. Textile Park, Nandgaon Peth, MIDC Amravati, Maharashtra on March 28, 2018.

The BSE Sensex is currently trading at 33193.58, up by 224.90 points or 0.68% after trading in a range of 32997.88 and 33214.04. There were 25 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.02%, while Small cap index was up by 2.00%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.23%, Industrials up by 2.10%, Auto up by 1.67%, Capital Goods up by 1.66% and Basic Materials up by 1.51%, while Bankex down by 0.43%, PSU down by 0.29% and Oil & Gas down by 0.11% were the few losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 4.64%, Adani Ports & SEZ up by 3.96%, Tata Motors up by 2.67%, Tata Motors - DVR up by 2.50% and Dr. Reddy’s Lab up by 2.44%. On the flip side, ICICI Bank down by 5.84%, Coal India down by 2.22%, Axis Bank down by 2.13%, SBI down by 1.22% and Bharti Airtel down by 1.05% were the top losers.

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 is currently trading at 10190.40, up by 76.70 points or 0.76% after trading in a range of 10127.75 and 10197.55. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Cipla up by 5.32%, Lupin up by 5.27%, Kotak Mahindra Bank up by 4.67%, Adani Ports & SEZ up by 4.24% and Tata Motors up by 2.74%. On the flip side, ICICI Bank down by 5.78%, Indian Oil Corporation down by 3.65%, Axis Bank down by 2.35%, Coal India down by 2.21% and Hindalco down by 1.51% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 65.72 points or 0.31% to 21,388.58, Taiwan Weighted decreased 31.22 points or 0.29% to 10,888.27, Shanghai Composite decreased 5.72 points or 0.18% to 3,163.18, FTSE Bursa Malaysia KLCI decreased 3.28 points or 0.18% to 1,860.18 and KOSPI Index decreased 1.69 points or 0.07% to 2,444.16. On the flip side, Jakarta Composite increased 35.24 points or 0.57% to 6,224.23.

Markets in Europe remained closed on Monday for the Easter holiday.