Markets to make optimistic start amid firm global cues

Indian stock markets closed higher on Thursday as Yes Bank delivered good quarterly numbers and traders covered their short positions on eve of derivative expiry. Today, the markets are likely to make an optimistic start, mirroring firm global markets after some of the biggest U.S. companies reported strong quarterly results. Traders will also get some support with private report that India’s economic growth will accelerate to 7.2 per cent in the current fiscal buoyed by manufacturing activity even as rising oil prices and high government debt remain a challenge. The agriculture sector is expected to grow higher than the estimated 2.1 per cent in the current fiscal year on account of positive prospects on Rabi harvest and a normal monsoon. Traders will also took some strength with NITI Aayog’s statement that 3.53 million (35.3 lakh) new jobs were generated between September 2017 and February this year. The EPFO data shows that from September 2017 to February 2018, 3.1 million (31.10 lakh) new payroll additions were made across all age groups. Stocks related to gems and jewellery sector will be in focus on report that the gems and jewellery exports have declined by 8.67 percent to Rs 2,64,130.64 crore in financial year 2017-18, mainly due to drop in demand from the UAE. There will be some important earnings announcements too, to keep the markets buzzing.

The US markets ended higher on Thursday, following release of upbeat earnings news from several big-name companies, with shares of Facebook (FB) surging up by 9.1 percent. Asian markets rallying in early deals as investor concerns over geopolitical risks eased on looming trade talks between the U.S. and China and the leaders of North and South Korea meeting Friday.

Back home, Thursday turned out to be a fabulous day of trade for Indian equity benchmarks with frontline gauges recapturing their crucial 34,700 (Sensex) and 10,600 (Nifty) levels. Markets started the session on positive note as sentiments remained upbeat on report that India’s global trade increased by 16.32% to $767.9 billion in 2017-18. According to the Commerce Department data, in 2016-17, the trade stood at $660.2 billion. The data further highlighted that while India’s global trade grew by 16.32% between FY17 and FY18, India’s total trade with LAC (Latin American countries) grew by 19.63%. It said that bilateral trade with LAC including Bolivia, Peru, Chile and Brazil has recorded healthy growth in 2017-18 as per the provisional numbers. Traders also got some support with report that Indian economy is expected to witness a cyclical recovery driven by investments as well as consumption, and the average GDP growth is expected to rise to 7.8% in the first half of this year. Meanwhile, India has inked a loan agreement of $125 million with World Bank’s investment arm to fund ‘Innovate in India for Inclusiveness’ project. Buying which took place in final hour of trade helped markets to end near intraday high levels on account of roll-over of long position in Futures & Options (F&O) segment. Some support also came with report that the agriculture ministry has targeted a record 283.7 million tonnes of foodgrain production in 2018-19, about 6 million tonnes or 2% higher than the estimated 277.5 million tonnes produced the year before. If these targets are met, it would mean the third straight year of food production surpassing the previous year’s record. Meanwhile, bolstering the government’s credentials on job creation, for the first time, payroll data released by the Employees’ Provident Fund Organisation (EPFO) and the National Pension System (NPS) showed at least 2.2 million formal jobs were added over the six months to February. The EPFO data shows 3.1 million new additions across age groups over this period. Finally, the BSE Sensex surged 212.33 points or 0.62% to 34,713.60, while the CNX Nifty was up by 47.25 points or 0.45% to 10,617.80.