Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in the early noon session and continued to trade on positive bias, following gains in Telecom, PSU and Realty stocks. Healthy buying was observed in blue-chip stocks like Vedanta, ICICI Bank, Bajaj Finance and SBI. Besides, broader indices were also trading in green, supporting their larger peers. Sentiments remained up-beat as Reserve Bank of India (RBI) stated that it would infuse Rs 12,500 crore into the financial system through open market operations (OMO). The decision is based on an assessment of liquidity conditions and also of durable liquidity needs. Investors took note of a report that India is likely to impose higher duties on 29 goods imported from the US from April 1, adopting a firmer stance in relations with one of its biggest trading partners, which withdrew benefits under the Generalised System of Preferences (GSP). Higher duties have been proposed on US walnuts, chickpeas, lentils, boric acid and diagnostic reagents, among other goods, imposing an additional burden of $290 million on them. However, gains remain limited as the unemployment rate in India rose to 7.2 percent in February 2019, the highest since September 2016, and up from 5.9 percent in February 2018.

On the global front, Asian markets were trading mostly in green, as Chinese benchmarks led the advance, lifted by promises the legislature will enact measures to open the economy and cool trade tensions. Back on street, cement related stocks will be in focus as Crisil in its latest report has said that the recent steep hike in prices of cement is likely to help cement companies to increase profitability and margins even as costs are descending and demand growth ascending. Besides, Natco Pharma gained on receiving final approval from the U.S. Food and Drug Administration (USFDA) for Imatinib Mesylate Tablets, 100 mg (base) and 400 mg (base).

The BSE Sensex is currently trading at 36581.28, up by 138.74 points or 0.38% after trading in a range of 36456.82 and 36640.27. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.73%, while Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were Telecom up by 1.44%, PSU up by 1.08%, Realty up by 1.04%, Energy up by 1.02%, Basic Materials up by 1.01%, while there were no losing sectoral indices on BSE.

The top gainers on the Sensex were Vedanta up by 2.40%, ICICI Bank up by 2.03%, Bajaj Finance up by 1.89%, SBI up by 1.63% and ITC was up by 1.40%. On the flip side, Hero MotoCorp down by 1.53%, Axis Bank down by 1.52%, Tata Motors down by 0.93%, Yes Bank down by 0.91% and HDFC Bank was down by 0.70% were the top losers.

Meanwhile, Finance Minister Arun Jaitley has said that the thrust of the government is to lower the tax rate and increase the tax base and keep the revenue collections moving up. He also said that the indirect tax collections will further increase in future.  He added that the government is committed to facilitate trade and industry in the country so that the momentum of the growth continues to move-up. 

The minister stated that Goods and Services Tax (GST) is now on the track and is in process of fast settling down. He also said that the process of reforms in case of direct and indirect taxes will continue in order to facilitate and further expedite the process of ease of doing business in the country. Besides, he said that Insolvency and Bankruptcy Code (IBC) has brought a change in the credit culture in the country and is helping the Banking Sector in making fast recoveries.

Besides, Jaitley pointed out that India continues to be the sweet spot as far as the Foreign Direct Investment (FDI) is concerned and is the fastest growing economy in the world. He noted that the government is committed to keep this growth momentum high and inclusive to ensure that the benefits of growth reaches to all sections of the society especially to the vulnerable and weaker sections.

The CNX Nifty is currently trading at 11035.40, up by 47.95 points or 0.44% after trading in a range of 10998.85 and 11052.45. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.50%, Bharti Infratel up by 2.89%, Vedanta up by 2.57%, Bajaj Finance up by 1.92% and Hindalco was up by 1.89%. On the flip side, Hero MotoCorp down by 1.63%, Axis Bank down by 1.50%, Zee Entertainment down by 1.25%, Tata Motors down by 0.95% and Yes Bank was down by 0.91% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 51.89 points or 0.5% to 10,357.15, Hang Seng increased 105.39 points or 0.36% to 29,066.99, Straits Times advanced 2.82 points or 0.09% to 3,236.89, Jakarta Composite soared 11.91 points or 0.18% to 6,453.19, Shanghai Composite was up by 25.94 points or 0.85% to 3,080.19.

On the other hand, Nikkei 225 slipped 117.09 points or 0.54% to 21,609.19 and KOSPI was down by 3.74 points or 0.17% to 2,175.49.