Post Session: Quick Review

Extending winning streak for sixth straight session, Indian equity benchmarks ended the volatile day of trade with decent gains on Monday with frontline gauges recapturing their crucial 38,100 (Sensex) and 11,450 (Nifty) level. Key indices started the session with a gap up opening as traders took encouragement with the trade ministry’s statement that India's trade deficit narrowed to $9.60 billion in February, dragged down by a fall in gold and oil imports, as compared to $14.73 billion in January. The data showed that in February, merchandise exports rose 2.44 percent from a year earlier to $26.67 billion, while imports were down 5.41 percent to $36.26 billion. Besides, gold imports in February fell 10.81 percent year-on-year to $2.58 billion, compared to $2.90 billion during the same month a year ago. Market participants also got some support with report that overseas investors poured in more than Rs 20,400 crore in the domestic capital market in the first half of March, mainly driven by positive global cues.

However, markets took U-turn and pared all of their gains as traders turned anxious with a private report stating that India will underperform this year compared to other emerging markets as valuations continue to be a concern for the country. Traders took note of report that industry body Assocham released a charter of demands to make India a $5 trillion economy by 2025. Listing out the charter, Assocham in a statement said it wants political parties to pledge, among other steps, to enable growth rate of 8-8.5 per cent per annum. But, bulls return in on Dalal Street in late trade to take markets beyond their crucial levels. Traders took some support with Finance Minister Arun Jaitley’s statement that infrastructure development and clearing backlog of defence procurement will be the government’s priorities for the future. He also noted that rural India development and improvement of healthcare and education would be the other priority areas.

Firm opening in European counter too aided sentiments with all the European counters trading in green in early deals, as Austria's consumer price inflation eased slightly in February to its lowest level in February. The figures from Statistics Austria showed that the consumer price index climbed 1.5 percent year-on-year in February, following a 1.8 percent rise in January. The latest inflation rate was the weakest since December 2016, when the price growth was 1.4 percent. All the Asian markets ended in green, buoyed by speculation the US Federal Reserve will sound decidedly dovish at its policy meeting later in the week.

Back home, Reserve Bank of India (RBI) Governor Shaktikanta Das will hold discussions on March 26 with representatives of trade bodies and credit rating agencies on interest rate and steps to boost economic activities. On the sectoral front, banking sector stocks remained in focus with credit rating agency ICRA’s statement that reduced net non-performing assets will drive considerable improvement in solvency of public sector banks (PSBs). Slippages will reduce during FY20 and reach levels of 1.9-2.4%, which is acceptable. Besides, banks may have to make higher provisions on loans to the power sector for the quarter ending March 2019 with the RBI saying that its February 12 circular continues to remain in force despite being challenged in the Supreme Court. Stocks related to the realty industry remained buzzing amid reports that the all-powerful GST Council in its 34th meeting to be held on Tuesday is expected to take up various issues including the implementation of lower GST rates for the real estate sector.

Finally, the BSE Sensex ended at 38166.02, up by 141.70 points or 0.37% after trading in a range of 37952.10 and 38369.59. There were 17 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader ended trading in red; the BSE Mid cap index slipped 0.16%, while Small cap index was down by 0.08%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.52%, Energy up by 2.11%, Oil & Gas up by 1.66%, Bankex up by 1.17% and PSU up by 1.07%, while Auto down by 1.38%, Telecom down by 1.36%, IT down by 1.10%, TECK down by 1.02% and Capital Goods was down by 0.81% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 2.75%, Bajaj Finance up by 2.74%, Power Grid Corporation up by 2.52%, Reliance Industries up by 2.37% and Tata Steel up by 1.91%. On the flip side, Maruti Suzuki down by 2.65%, Hero MotoCorp down by 2.52%, Bharti Airtel down by 2.14%, Infosys down by 1.37% and Larsen & Toubro down by 1.26% were the top losers. (Provisional)

Meanwhile, in order to protect environment from ill-effects of lead-based equipment, the Power Ministry may issue soon new norms for bringing greener options of electricity transmission cables like aluminium. The Power Ministry and the Central Electricity Authority (CEA) are working on greener options.  Aluminium-based cable sheaths are greener and cheaper alternative than lead and switching to greener alternatives is an obvious choice to protect the environment and health concerns.

As per World Health Organisation estimates, 240 million people globally are overexposed to lead poisoning. The lead-based metallic sheath used in power cables for earthing and anti-corrosion purposes contributes to 35-48% of the weight of cables of voltage levels ranging from 66 kV to 220 kV.

A single kilometer of cable, which weighs about 20 tonne/km has lead content of almost 8 tonne/km. The underground power cables have an average life span of 25-30 years and once they are laid, they are never dismantled.

The CNX Nifty ended at 11479.50, up by 52.65 points or 0.46% after trading in a range of 11412.50 and 11530.15. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indian Oil Corporation up by 3.65%, HPCL up by 3.45%, Bajaj Finance up by 2.77%, Reliance Industries up by 2.67% and Axis Bank up by 2.63%. On the flip side, Maruti Suzuki down by 2.60%, Hero MotoCorp down by 2.37%, Wipro down by 2.33%, Bharti Airtel down by 2.18% and Eicher Motors down by 1.45% were the top losers. (Provisional)

All the European markets were trading in green; UK’s FTSE 100 increased 48.76 points or 0.67% to 7,277.04, France’s CAC gained 6.74points or 0.12% to 5,412.06 and Germany’s DAX was up by 6.24 points or 0.05% to 11,691.93.

Asian markets ended higher on Monday as weak US economic data released on Friday cemented hopes that the US Federal Reserve could strike a dovish stance this week. The US Federal Reserve was also set to begin its March policy meeting later in the week. Investors also remained hopeful for a US-China trade deal after Xinhua news agency reported the US and China have made further concrete progress on the text of the trade agreement between the two sides. Chinese shares ended higher on expectations that there is scope to ease monetary policy to support economic growth this year. Japanese shares rose despite weak February export data. The country's exports fell for a third month in February amid waning external demand, putting pressure on the Bank of Japan to offer more stimulus.