Benchmarks extend northward journey for fourth straight session

Extending winning streak for fourth straight session, Indian equity benchmarks ended the Tuesday’s trade in green terrain with frontline gauges recapturing their crucial 10,400 (Nifty) and 33,800 (Sensex) levels. Markets traded in green throughout the session but in a tight band. Sentiments remained up-beat since beginning, as traders bet for improved corporate earnings and acceleration in economic growth, with readings on industrial production and retail inflation due on Thursday. Traders took 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”. 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.

Traders took some support with private report showing that FPI investment limits in central government securities for general and long term investors have been increased by Rs 59,200 crore or over $9 billion to a total of Rs 3.15 lakh crore till the end of FY19. Some support also came after Prime Minister Narendra Modi 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. The street paid no heed towards the credit rating agency, Crisil’s latest report predicting 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.

Positive opening in European counters too aided sentiments, as investors digest comments from Chinese President Xi Jinping on measures planned to further open up the world's second-largest economy. Asian markets rallied on Tuesday .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

Back home, investors continued to take some 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. Sugar stocks remained in sweet spot 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.

Finally, the BSE Sensex surged 91.71 points or 0.27% to 33,880.25, while the CNX Nifty was up by 22.90 points or 0.22% to 10,402.25.

The BSE Sensex touched a high and a low of 33,949.98 and 33,813.30, respectively and there were 17 stocks on gaining side as against 14 stocks on losing side on the index.

The broader indices ended mixed; the BSE Mid cap index gained 0.18%, while Small cap index was down by 0.02%.

The top gaining sectoral indices on the BSE were Metal up by 2.00%, Realty up by 1.25%, Capital Goods up by 1.08%, Bankex up by 0.93% and Basic Materials up by 0.76%, while Auto down by 0.65%, Consumer Discretionary Goods & Services down by 0.35%, Healthcare down by 0.05% and FMCG was down by 0.02% were the few losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 5.43%, ICICI Bank up by 2.78%, Adani Ports & SEZ up by 2.75%, Tata Steel up by 2.58% and Coal India up by 2.20%. On the flip side, Tata Motors - DVR down by 1.51%, Tata Motors down by 1.37%, Mahindra & Mahindra down by 1.02%, Hero MotoCorp down by 1.01% and HDFC Bank down by 1.00% were the top losers.

Meanwhile, the Union Minister of State for Tourism Alphons Kannanthanam has said that the number of foreign tourist arrivals (FTAs) in India has crossed the one crore mark for the first time and the government is aiming to double this number in next three years. He noted that the total income from FTAs stood at Rs 1,80,000 crore.

Kannanthanam has stated that the government had set itself a target of doubling the FTA in the next three years and the nightlife tourism would be promoted to achieve this. He pointed out that the impressive achievement of the tourism sector with contribution of about 6.88 percent to the country's total Gross Domestic Product (GDP) and contributes around 12.36 percent of the country’s whole employment sector.

The Minister further said that the unemployment issues of Kerala could be resolved to a large extent if the state focuses on tourism and Information Technology. Talking on tourism development in Kerala, he said that an expert team has been entrusted to study the tourism potential of Pathanamthitta and Alappuzha districts.

The CNX Nifty traded in a range of 10,424.85 and 10,381.50. There were 26 stocks in green as against 24 stocks in red on the index.

The top gainers on Nifty were Axis Bank up by 5.43%, Hindalco up by 3.91%, Tata Steel up by 2.94%, ICICI Bank up by 2.80% and Adani Ports & SEZ up by 2.73%. On the flip side, Bajaj Finserv down by 2.45%, Hero MotoCorp down by 2.02%, Indiabulls Housing Finance down by 1.62%, Tata Motors down by 1.35% and Bajaj Finance down by 1.14% were the top losers.

The European markets were trading in green; France’s CAC increased 35.79 points or 0.68% to 5,299.18, UK’s FTSE 100 gained 37.52 points or 0.52% to 7,232.27 and Germany’s DAX was up by 133.55 points or 1.09% to 12,395.30.

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.