Post Session: Quick Review

Indian equity benchmarks ended in green with gains of around one fourth of a percent in a range bound session of trade. The market breadth was in favour of declines with one stock advancing against each declining one. Indian equity benchmarks made an optimistic start and traded in fine fettle in early deals. The sentiments were upbeat after Commerce and Industry Minister Suresh Prabhu expressed hopes that India can benefit from the ongoing challenges in global trade provided it makes the right moves. His statement came in the wake of steadily escalating tensions between the world’s two largest economies -- China and US. The Minister added that the Indian government is taking steps to boost exports, industrial growth and manufacturing activities. Separately, Prime Minister Narendra Modi yesterday gave a 100-day deadline to the heads of central public sector enterprises (CPSEs) to come out with a roadmap with ‘measurable targets’ for strengthening state-owned companies and promoting development activities. Modi also suggested that their CSR spend should be focused largely on one specific theme each year.

Buying was visible in metal stocks on back of rising aluminium prices as well as cooling off of trade war concerns between US and China. Aluminium prices soared to their highest in more than four weeks after the United States imposed sanctions on Russian company Rusal, one of the world’s largest producers. Most of sugar stocks closed in green on reports that the government is likely to provide financial support to cane farmers for produce sold to sugar mills. Prime Minister Narendra Modi’s administration is likely to approve a proposal to pay around Rs 55 ($0.84) for every tonne of cane sold to the mills. Mixed reactions were seen in cement companies on ICRA’s report that the cement industry is likely to register a flat growth of around 5% in the current financial year despite a pick-up in demand in recent months and healthy outlook ahead. The report added that the profitability margins and debt metrics of the cement companies may also come under pressure in the coming quarters on higher pet coke, coal and diesel prices.

Meanwhile, investors took note that in a major boost to infrastructure development in the north-east, NITI Aayog will soon hold a high-level meeting to chalk out strategies for improving road, rail and air connectivity in the regions besides focusing on improving hydel power production and organics farming in the states. Separately, unseasonal rainfall and hailstorms in north India over the weekend, along with a forecast of more showers and storms in the days ahead, have put at risk the rabi crop, especially wheat, mustard and mangoes, raising fears of increasing rural distress.

On the global front, Asian markets closed in green. Chinese President Xi Jinping promised to open the country’s economy further and lower import tariffs on products including cars, in a speech seen as conciliatory amid rising trade tensions between China and the United States. The European markets were trading in green. British consumer spending wilted under heavy snow in March, according to surveys that added to signs the economy probably slowed at the start of 2018.

Back home, realty companies stocks were on traders’ radar as a private report stated that housing sales rose by 12 percent in seven major cities to 49,200 units during January-March period over the previous quarter on better demand from end-customers post enactment of new realty law RERA. Sales stood at 43,800 units in the October-December quarter of 2017 across seven cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune.

The BSE Sensex ended at 33875.20, up by 86.66 points or 0.26% after trading in a range of 33813.30 and 33949.98. There were 15 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index was up by 0.15%, while Small cap index was down by 0.01%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.06%, Realty up by 1.23%, Capital Goods up by 0.96%, Bankex up by 0.91% and Basic Materials up by 0.76%, while Auto down by 0.66%, Consumer Disc down by 0.34%, Healthcare down by 0.07% and FMCG down by 0.05% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 5.75%, ICICI Bank up by 2.85%, Adani Ports & Special Economic Zone up by 2.84%, Tata Steel up by 2.77% and Coal India up by 2.30%. (Provisional)

On the flip side, Hero MotoCorp down by 1.82%, Tata Motors - DVR down by 1.51%, Tata Motors down by 1.30%, IndusInd Bank down by 1.11% and HDFC Bank down by 0.90% were the top losers. (Provisional)

Meanwhile, ahead of the quarterly corporate earnings season, the credit rating agency, Crisil in its latest report has predicted that the revenue growth rate of India Inc (excluding banks, financial services & insurance and oil & gas companies) will slow down to 9% in the fourth quarter (Q4) of the financial year 2017-18 on base effects.

The report, based on analysis of over 400 companies, is also expecting contraction in the pre-tax profit margins of up to 0.70% to come in at a 12-quarter low of 18.6% but it highlighted that the pace of contraction is now reducing. It also anticipated that consumption-driven sectors such as automobiles, retail and airline services will see revenue growth in excess of 15%, on the back of volumes and abating GST linked teething troubles. It said that among commodity-linked sectors, natural gas and cement are expected to post robust growth, supported by volumes, while the likes of petrochemicals and steel products would benefit from continued higher prices.

The rating agency added that overall, 11 out of 21 key sectors are expected to log near double-digit revenue growth in January to March quarter. However, Telecom would continue to face pricing pressure as incumbents slash tariffs to retain subscriber market shares. Export-linked sectors such as IT and pharmaceuticals, too, will continue to disappoint, amidst a tough international environment coupled with appreciating rupee.

The CNX Nifty ended at 10401.35, up by 22.00 points or 0.21% after trading in a range of 10381.50 and 10424.85. There were 26 stocks advancing against 24 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 5.43%, Hindalco up by 3.79%, Tata Steel up by 2.94%, ICICI Bank up by 2.80% and Adani Ports & Special Economic Zone up by 2.73%. (Provisional)

On the flip side, Bajaj Finserv down by 2.45%, Hero MotoCorp down by 2.07%, Indiabulls Housing down by 1.65%, Tata Motors down by 1.34% and Bajaj Finance down by 1.14% were the top losers. (Provisional)

The European markets were trading in green; UK’s FTSE 100 increased 38.01 points or 0.53% to 7,232.76, Germany’s DAX increased 140.42 points or 1.15% to 12,402.17 and France’s CAC increased 37.69 points or 0.72% to 5,301.08.

Asian stocks closed in green on Tuesday after Chinese President Xi Jinping promised to lower import tariffs on products including cars and take other steps to further open the world's second-largest economy, helping soothe investors' jitters over an escalating trade conflict with the United States. Chinese shares ended higher after Xi sought to defuse trade tensions with the US by lifting limits of foreign investment in automobile and aircraft industries. Japanese shares surged, led by automakers after Xi said his government would ‘significantly lower’ tariffs on vehicle imports this year and raise the foreign ownership limit in the automobile sector ‘as soon as possible’. On the data front, Japan's consumer confidence held steady at the end of the first quarter, survey data from Cabinet Office showed. The seasonally adjusted consumer confidence index came in at 44.3 in March, unchanged from February.