Sensex, Nifty maintain upbeat momentum; Metals shine

Indian equity benchmarks maintain their upbeat momentum in late afternoon session, with Sensex gaining more than 100 points, on account of firm opening in European markets and gains in other Asian markets. Besides, the broader indices turned positive in late noon deals and Metal index gained the most among all other sectors. The major industry gainers like Axis Bank, ICICI Bank and Tata Steel along with heavy buying at Metal, Capital Goods and Basic Materials counters, helped the indices to maintain gaining momentum. Traders were taking encouragement with Commerce and Industry Minister Suresh Prabhu’s statement 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.

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. Further, investors turned their focus to macro economic data such as retail inflation data and industrial growth data due later this week along with corporate results for fourth quarter. On the sectoral front, select stocks related to realty sector were trading higher, amid a private report stating 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.

On the global front, European markets were trading in green, as investors digest comments from Chinese President Xi Jinping on measures planned to further open up the world's second-largest economy. Asian markets were also trading in green. Back home, in scrip specific development, Minda Industries gained after the company’s Board approved the acquisition of 41.67% stake of Toyoda Gosei Minda India (TG Minda).

The BSE Sensex is currently trading at 33908.30, up by 119.76 points or 0.35% after trading in a range of 33813.30 and 33949.98. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.22%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Metal up by 2.05%, Capital Goods up by 1.30%, Basic Materials up by 0.95%, Bankex up by 0.93% and Realty up by 0.86%, while Auto down by 0.61%, Consumer Disc down by 0.23% and Telecom down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 4.54%, ICICI Bank up by 3.49%, Tata Steel up by 2.72%, Adani Ports & SEZ up by 2.47% and Coal India up by 2.06%. On the flip side, Mahindra & Mahindra down by 1.77%, Hero MotoCorp down by 1.47%, Tata Motors - DVR down by 1.44%, Tata Motors down by 1.20% and HDFC down by 0.91% were the top losers.

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 is currently trading at 10418.30, up by 38.95 points or 0.38% after trading in a range of 10381.50 and 10424.85. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 4.49%, Hindalco up by 3.79%, ICICI Bank up by 3.40%, Tata Steel up by 2.99% and Adani Ports & SEZ up by 2.28%. On the flip side, Bajaj Finserv down by 1.98%, Mahindra & Mahindra down by 1.80%, Hero MotoCorp down by 1.76%, Indiabulls Housing Finance down by 1.39% and Tata Motors down by 1.20% were the top losers.

All Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 6.19 points or 0.33% to 1,855.90, KOSPI Index increased 6.66 points or 0.27% to 2,450.74, Taiwan Weighted increased 33.65 points or 0.31% to 10,927.18, Shanghai Composite increased 52.03 points or 1.66% to 3,190.32, Jakarta Composite increased 71.9 points or 1.15% to 6,318.03, Nikkei 225 increased 116.06 points or 0.54% to 21,794.32 and Hang Seng increased 499.16 points or 1.65% to 30,728.74.

All European markets were trading in green; UK’s FTSE 100 increased 28.4 points or 0.39% to 7,223.15, France’s CAC increased 37.16 points or 0.71% to 5,300.55 and Germany’s DAX increased 116.61 points or 0.95% to 12,378.36.