Domestic equities continue to trade in positive terrain

Domestic equities continued their trade in positive terrain in late morning session, amid positive cues from global markets. Traders took note of the report that the trade deficit between India and the US dropped by almost six per cent in 2017 compared to the previous year. The US goods trade deficit with India was $22.9 billion in 2017, a 5.9 per cent decrease ($1.4 billion) over 2016. US goods exports to India were $25.7 billion, up 18.7 per cent ($4.0 billion) from the previous year. The corresponding US imports from India were $48.6 billion, up 5.6 per cent. Traders’ sentiments were also optimistic with a private sector survey which showed that, India’s services industry returned to growth in March as new business picked up on improved demand, encouraging firms to hire at the fastest pace in nearly seven years.

On the global front, Asian markets were trading in green, as investors’ sentiments were lifted as the United States expressed willingness to negotiate a resolution to the trade fight after the proposed US tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports.

Back on domestic turf, banking stocks remained in limelight ahead of a monetary policy decision by the country's central bank, where it is expected to hold interest rates steady. In scrip specific development, ITI surged on emerging lowest bidder for Rs 3200 crore project in the ‘MAHANET tender of Maharashtra State for connecting Gram Panchayats to block level through fibre under Bharat Net Phase II Project’. Besides, Bhansali Engineering Polymers edged higher on expanding ABS capacity from 80 KTPA to 100 KTPA at its Abu Road Unit within the envisaged cost and time frame i.e. Rs 20 crore. On the sectoral front, metal stocks were buzzing after Minister of State for Steel Vishnu Deo Sai stated that India’s ambition to become a top steel exporter will not be disrupted by the US President’s recent move to impose 25 percent tariff on steel imports, as it depends on a number of factors which includes demand in the foreign markets, its competitiveness and domestic demand.

The BSE Sensex is currently trading at 33430.00, up by 410.93 points or 1.24% after trading in a range of 33267.86 and 33499.32. There were 29 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.37%, while Small cap index was up by 1.51%.

The top gaining sectoral indices on the BSE were Metal up by 3.38%, Basic Materials up by 2.51%, Realty up by 2.35%, Industrials up by 1.95% and Capital Goods was up by 1.76%.

The top gainers on the Sensex were Tata Motors up by 4.02%, Tata Motors - DVR up by 3.80%, Tata Steel up by 3.17%, Mahindra & Mahindra up by 2.50% and ICICI Bank was up by 2.38%. On the flip side, Bharti Airtel down by 0.13% and ITC was down by 0.10% were the only losers.

Meanwhile, the Minister of State for Steel Vishnu Deo Sai has said that India’s ambition to become a top steel exporter will not be disrupted by the US president’s recent move to impose 25 percent tariff on steel imports, as it depends on a number of factors which includes demand in the foreign markets, its competitiveness and domestic demand.

The minister has indicated that the exports to the US constitute only about 2.6 percent of the country’s total exports of steel. He noted that the exports of total finished steel from India have increased by 84 percent to 10.87 million tonnes (MT) in the January-December 2017 from 5.90 MT the corresponding period of last year.

US President Donald Trump had imposed high tariffs on steel and aluminium imports and defended his step by saying that it was necessary to boost the US industry hit by 'unfair' business practices, a move that has ignited fears of a global trade war. The US decided to levy import tariffs of 25 percent on foreign-made steel and 10 percent on aluminum.

The CNX Nifty is currently trading at 10261.95, up by 133.55 points or 1.32% after trading in a range of 10227.45 and 10286.25. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.18%, Vedanta up by 4.21%, Tata Motors up by 4.11%, UPL up by 3.24% and Tata Steel was up by 3.16%. On the flip side, Bharti Infratel down by 0.49%, Cipla down by 0.24%, Bharti Airtel down by 0.08% and ITC was down by 0.06% were the top losers.

All the Asian markets were trading in green; FTSE Bursa Malaysia KLCI surged 18.62 points or 1.03% to 1,834.56, Jakarta Composite soared 23.9 points or 0.39% to 6,180.99, KOSPI Index gained 29.56 points or 1.23% to 2,437.62 and Nikkei 225 was up by 378.38 points or 1.77% to 21,697.93.