Markets likely to make positive start

Indian markets rose for a third consecutive session on Monday as investors downplayed fears of a global trade war and pinned hopes for strong quarterly earnings. Today, the markets are likely to make positive opening amid firm global cues. Investors may bet for improved corporate earnings and acceleration in economic growth, with readings on industrial production and retail inflation due on Thursday. Traders will get some encouragement with Commerce and Industry Minister Suresh Prabhu’s statement that India can benefit from the ongoing challenges in global trade provided it plays its cards well. He said, we are passing through a challenging but an opportune time. If we play our cards properly, and that is what we are trying to do we can actually benefit from it by creating an opportunity around the issues that are happening globally and we have no choice but to respond in a positive manner. Traders will continue to take support from Minister for Finance and Corporate Affairs, Arun Jaitley’s statement that the coming financial year will see the Indian economy becoming more robust. He said, reforms such as GST, Insolvency and Bankruptcy Code and new income tax regulations are contributing to a better investment climate. There will be buzz in cement related stocks on ICRA’s report that the cement industry is likely to register a flat growth of around 5 per cent in the current financial year despite a pick-up in demand in recent months and healthy outlook ahead.

U.S. stocks failed to sustain early gains and ended with marginal gains on Monday amid lingering concerns about a potential trade war between the U.S. and China. There was some initial optimism when Donald Trump made a conciliatory gesture toward Chinese leadership. Asian markets rallied in early deals as investors digested comments from Chinese President Xi Jinping on measures planned to further open up the Chinese economy.

Back home, Indian equity benchmarks ended the Monday’s trade on an optimistic note with frontline gauges garnering the gains of around half a percent, as traders remained hopeful ahead of quarterly earnings this week, with IT major Infosys likely to declare its March quarter results on April 13. After a cautious start, markets gained strength, as sentiments turned upbeat on the World Economic Situation and Prospects 2018 report of the United Nations, which enlightened that the Indian economy is projected to grow at 7.2% in 2018-19 and 7.4% in 2019-20. The report indicates that the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms. Sentiments also got some support with Finance Minister Arun Jaitley’s statement that the Indian economy, which saw temporary disruptions caused by demonetization and the roll-out of the Goods and Services Tax (GST) over the past two years, will see consolidation in the current fiscal. Jaitley added that reforms such as GST, Insolvency and Bankruptcy Code and new income tax regulations are contributing to a better investment climate. Meanwhile, Economic Affairs Secretary Subhash Chandra Garg said India will have to create and nurture a very healthy and supportive macroeconomic environment to become $10 trillion economy by 2030. He added that government has taken many reform measures since 2014, including GST and IBC (Insolvency and Bankruptcy Code). Separately, industry CII welcomed the launch of the E-way Bill system for inter-state movement of goods under GST, saying it will pave the way for widening of the tax base, reduce logistics costs, and faster movement of goods. The industry body added that the major relief to industry and business is in hassle-free movement of goods across state borders under GST by removing the state barriers, which is a milestone for improvement in ease of doing business. Finally, the BSE Sensex surged 161.57 points or 0.48% to 33,788.54, while the CNX Nifty was up by 47.75 points or 0.46% to 10,379.35.