Post Session: Quick Review

Indian equity benchmarks traded on a volatile note and ended in red with cut of more than one percent. Selling during the second half pulled the markets lower with Nifty slipping by 125 points, while Sensex managed to hold 33,000 mark.  The market breadth was in favour of declines with 3 stocks advancing against four declining ones. Indian equity benchmarks made a positive start and traded marginally in green terrain in early deals ahead of RBI’s two-day policy meet outcome. The first bi-monthly monetary policy review for FY19 is to be announced by the RBI on April 5. The sentiments were upbeat on private weather forecasting agency report that monsoon rains in India are expected to be average in 2018, raising prospects of higher farm and economic growth in the $2 trillion economy. The report added that monsoon rains are expected to be 100 percent of the long-term average. Separately, with government’s data showing a sharp increase in the number of tax returns filed in fiscal year 2017-18, Finance Minister Arun Jaitley has stated that the Goods and Services Tax (GST) implementation and impact of demonetization have resulted into higher formalization of the Indian economy. He added that direct tax collections hit the landmark figure of Rs 10.02 lakh crore in 2017-18, 18 per cent higher than previous fiscal, the number of income tax returns filed rose to 6.84 crore during 2017-18, compared to 5.43 crore filed in 2016-17. This represents a 26 per cent rise in ITRs.

However, selling crept in during second half of trade after China unveiled new retaliation plan for US tariffs. China has announced new tariffs on 106 US products, which include soybeans, cars and whisky. The world’s second largest economy has set net tariff rate of additional 25 percent on US products, which include soyabean, corn, auto, chemical products. Investors took note that Indian companies raised Rs 4,975 crore by issuing non-convertible debentures (NCDs) to retail investors in 2017-18 to meet their business requirements, a plunge of 83% from the preceding year. According to latest data with the Securities and Exchange Board of India (SEBI), in 2016-17, firms had mobilized Rs 29,558 crore through this route. Besides, State of Finance Shiv Pratap Shukla said that Public Sector Banks (PSBs) wrote off Rs 2.42 lakh crore worth of loans between April 2014 and September 2017. 

Meanwhile, majority of sugar stocks closed in green on ISMA report that sugar output increased 49% to 28.18 million tonne (MT) so far in 2017-18 marketing year as against 18.88 MT in the year-ago period. While sugar production in Maharashtra increased to 10.12 MT, Uttar Pradesh recorded 9.54 MT output and Karnataka 3.55 MT. Select tea stocks were buzzing in today’s trade on ICRA report that profit margins for bulk tea players, particularly the North Indian producers, are set to improve in FY2018. Firm price trends in North Indian teas from August, 2017 to January, 2018 have supported the margins and debt coverage indicators of most large bulk tea producers based out of the region in FY2018.

On the global front, Asian markets closed mostly in red. China’s services sector growth eased to a four-month low in March as new business and employment grew at a slower rate, pointing to cooling demand in a sector Beijing is counting on to maintain economic growth. The Caixin/Markit services purchasing managers’ index (PMI) fell to 52.3 in March, from February's 54.2. The European markets were trading in red. Euro zone inflation increased in line with expectations in March mainly due to more costly food and services, providing modest support to European Central Bank policymakers pushing to wind down its stimulus.

The BSE Sensex ended at 33023.60, down by 347.03 points or 1.04% after trading in a range of 32972.56 and 33505.53. There were 8 stocks advancing against 23 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.89%, while Small cap index was down by 1.01%. (Provisional)

The sole gaining sectoral index on the BSE was Auto up by 0.46%, while Metal down by 2.86%, Consumer Durables down by 2.58%, Basic Materials down by 2.09%, Capital Goods down by 1.77% and PSU down by 1.66% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 3.25%, Tata Motors - DVR up by 2.90%, Hero MotoCorp up by 0.82%, Hindustan Unilever up by 0.77% and Adani Ports & Special Economic Zone up by 0.34%. (Provisional)

On the flip side, Tata Steel down by 3.40%, Kotak Mahindra Bank down by 2.57%, Yes Bank down by 2.41%, Axis Bank down by 2.34% and Larsen & Toubro down by 2.26% were the top losers. (Provisional)

Meanwhile, reiterating the benefits of India’s 7,600 km long coastline, Commerce and Industry Minister Suresh Prabhu has said that this vast coastline provides huge potential for the domestic industry in terms of exploiting marine products and promoting exports.

Prabhu noted the ministry’s efforts to make the country’s vast coastline as a food basket for the world and to push ease of doing business. Besides, he also urged the industry to focus on standards and quality of food products to promote brand India and shipments, and added that the industry will not be able to get the vest value of exports, if brand India dilutes.

The Minister has launched three portals on safe food traceability, one laboratory, one assessment and export alert monitoring. He said that the launch of these digital initiatives will help in improving shipments of quality agricultural and marine goods, and will also reinstate the confidence of India's trading partners of complete quality management of the consignment from farm to fork.

The CNX Nifty ended at 10119.90, down by 125.10 points or 1.22% after trading in a range of 10111.30 and 10279.85. There were 8 stocks advancing against 42 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Motors up by 3.41%, Eicher Motors up by 3.25%, Hindustan Unilever up by 0.71%, Bajaj Finance up by 0.70% and Adani Ports & Special Economic Zone up by 0.44%. (Provisional)

On the flip side, Vedanta down by 4.13%, UPL down by 4.13%, Tata Steel down by 3.56%, Hindalco down by 3.44% and Titan Co down by 3.03% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 29.48 points or 0.42% to 7,000.98, Germany’s DAX decreased 143.81 points or 1.2% to 11,858.64 and France’s CAC decreased 30.12 points or 0.58% to 5,122.00.

Asian stocks closed mostly lower on Wednesday as investors braced for China's countermeasures against US tariffs on Chinese products worth about $50 billion focusing on high-tech items. Beijing has immediately vowed to impose measures of the ‘same strength’ against US goods, fueling fears that escalating trade worries could hurt global growth. Traders also awaited cues from Friday's US employment report as well as a slew of US reports on private sector employment, service sector activity, factory orders and international trade due this week amid expectations for further monetary policy tightening. Chinese shares ended slightly lower as investors trimmed their equity exposure ahead of the Tomb-sweeping holiday break. While there was some lingering unease among investors, most see the widely-expected US sanctions as having negligible impact on growth, and expect a full-blown trade war will be averted through negotiations. Meanwhile, Japanese shares ended higher in choppy trade as some automakers rose after they reported strong US sales numbers, helping offset the impact of a stronger yen.