Post Session: Quick Review

Indian equity benchmarks traded on a volatile note throughout the day and ended flat. Though the markets gained strength during the last hour of trade but selling at intraday high pulled the market lower near neutral line. The market breadth was in favour of advances with 3 stocks advancing against two declining ones. Indian equity benchmarks made a cautious start and traded slightly in red in early deals as trade war fears resurfaced after US President Donald Trump proposed additional tariffs on China, aggravating trade tensions. The sentiments remained downbeat with yesterday’s monetary policy report from RBI which stated that while the global economic activity has gathered momentum, financial market volatility and potential trade wars pose a threat to outlook. The financial markets turned volatile in February-March on the back of uncertainty regarding the pace of normalization of US monetary policy, and concerns surrounding global trade. Separately, the market participants took note of CARE Ratings’ latest report that even though RBI lowered its inflation projection sharply from previous forecasts in its first monetary policy review for the new financial year, two key factors -- the progress and spread of monsoons along with the MSP fixation by the government would be a key determinant for inflation in the coming months.

Meanwhile, select stocks in Fast Moving Consumer Goods (FMCG) space were buzzing on private brokerage report that FMCG firms are expected to post a net revenue growth of 11.8% in the March quarter, highest in the past 18 quarters, on acceleration in volume growth, GST-led savings and higher leverage benefits. The report noted that companies have started increasing prices selectively to pass on raw material inflation after being cautious for the first few months post GST implementation. The fertilizer stocks were buzzing in today’s trade on ICRA’s report that the demand for fertilizers in the first half of the current financial year is likely to remain stable on the outlook for normal monsoon and higher farm income. The prices of various phosphatic fertilizers are also expected to remain stable for the upcoming year on higher subsidy.

Investors took note that the Finance Ministry welcomed the Monetary Policy Committee’s (MPC) projection of higher GDP growth and lower inflation in the current fiscal. The MPC’s growth projection of 7.4% is in line with the Economic Survey. MPC has projected inflation at 4.5% in the fourth quarter of the last fiscal. The decision of MPC comes against the backdrop of government’s assertion that both the fiscal deficit as well as the revenue shortfall in 2017-18 will be lower than the upwardly revised estimates given in the Union Budget.

On the global front, Asian markets closed mixed. Trade tensions, however, returned to the fore after Trump said that he had instructed US trade officials to consider $100 billion in additional tariffs on China, fuelling the trade dispute between the world’s two economic superpowers. The European markets were trading in red. Britain’s economy chalked up solid productivity growth in the last three months of 2017 to record its strongest six months in more than a decade. Economic output per hour worked rose by 0.7 percent in the fourth quarter of 2017 - above its long-run average though a shade less than first estimated in February - and the third-quarter figure was revised up slightly to 1.0 percent.

Back home, aviations stocks InterGlobe Aviation (Indigo) and SpiceJet closed in green on airlines global body, IATA’s (International Air Transport Association) report that India’s domestic air passenger demand surged 22.9% in February, more than two-fold of the global average, propelled by the launch of new flights and routes by the local airlines during the period. February was also the 42nd month of double-digit year-on-year growth on a trot, with a record more than 90% occupancy on aircraft operated by the domestic airlines.

The BSE Sensex ended at 33606.49, up by 9.69 points or 0.03% after trading in a range of 33501.37 and 33697.51. There were 15 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.54%, while Small cap index was up by 0.56%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 0.86%, Oil & Gas up by 0.82%, Consumer Durables up by 0.58%, PSU up by 0.55% and Energy up by 0.47%, while Telecom down by 1.45%, TECK down by 0.78%, IT down by 0.57%, Capital Goods down by 0.37% and Metal down by 0.31% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports & Special Economic Zone up by 1.09%, Sun Pharma up by 0.95%, Tata Steel up by 0.86%, Maruti Suzuki up by 0.78% and ICICI Bank up by 0.76%. (Provisional)

On the flip side, Bharti Airtel down by 2.34%, Infosys down by 1.42%, Larsen & Toubro down by 0.87%, Bajaj Auto down by 0.73% and Axis Bank down by 0.72% were the top losers. (Provisional)

Meanwhile, highlighting the logistic sector’s enormous potential for improvement of economic growth of the country, the Commerce Secretary Rita Teaotia has said that the Commerce Ministry is working on several measures such as a short and medium term integrated plan and an integrated digital platform, to promote growth of the logistics sector.

Teaotia also listed steps taken by Commerce Ministry to enhance logistics efficiency of India such as by getting infrastructure status to key logistics activities, working on 80% Direct Port Delivery (DPD) at key ports, increased role of Risk Management System (RMS) for border clearances & rolling out of the integrated logistics portal shortly.

Commerce Secretary noted that ongoing measures will lead to reduction in transaction costs and time of traders. She has expressed the need to bring down India’s logistics cost to 10% from 14% of the GDP, as it is far higher as compared to other countries. Besides, she said that all economic activities including exports and manufacturing are linked with logistics and its efficiencies would help improve economic development.

The CNX Nifty ended at 10320.95, down by 4.20 points or 0.04% after trading in a range of 10290.85 and 10350.45. There were 25 stocks advancing against 25 stocks declining on the index. (Provisional)

The top gainers on Nifty were Lupin up by 2.83%, BPCL up by 2.54%, Titan Co up by 2.05%, HPCL up by 1.65% and Adani Ports & Special Economic Zone up by 1.26%. (Provisional)

On the flip side, Bharti Airtel down by 2.53%, Vedanta down by 1.78%, Infosys down by 1.74%, HCL Tech down by 1.10% and Coal India down by 0.99% were the top losers. (Provisional)

The European markets were trading in red; UK’s FTSE 100 decreased 9.94 points or 0.14% to 7,189.56, Germany’s DAX decreased 66.73 points or 0.54% to 12,238.46 and France’s CAC decreased 27.82 points or 0.53% to 5,248.85.

Asian stocks closed mixed on Friday as worries about a global trade war intensified and investors waited for cues from the US Labor Department's closely-watched monthly jobs report for March due out later in the day. US employment is expected to increase by 198,000 jobs in March after spiking by 313,000 jobs in February. The unemployment rate is expected to dip to 4.0 percent after holding at 4.1 percent for five straight months. Gold edged up and the dollar faltered after US President Donald Trump said he has instructed his trade officials to consider $100 billion in additional tariffs on China. Japanese shares fell as the yen rose against the dollar in view of Trump's new tariff threat. Meanwhile, markets in China and Taiwan were closed for public holidays.