Post Session: Quick Review

Thursday’s trading session turned out to be extremely sanguine for local equity markets, which going from strength to strength, concluded at day’s highest points, aided by short-covering ahead of F&O expiry. Trading for the day began on a firm note, as traders took encouragement with report that India's monsoon, crucial for Asia's third largest economy, is likely to be a robust and healthy one this year provided there isn't a surprise El Nino phenomenon. Monsoon rains, the lifeblood for India's farm-dependent $2.6 trillion economy, arrive on the southern tip of Kerala state around June 1. Traders remain energized with a report that the Reserve Bank of India (RBI) is likely to cut repo rate by 25 basis points in the April policy due to weak economic activity. The monetary policy committee is scheduled to meet from April 2 to 4. Soon, markets trimmed some of their gains, as market-men got anxious with report that there is a shortfall in income tax collections. Progress in tax collection has been reviewed as against the targeted Rs 12 lakh crore. Only 85.1% of the targeted or Rs 10.21 lakh crore has been collected as of March 23.

In afternoon deals, key indices regained traction, as optimism remained among traders the Reserve Bank of India (RBI) in its latest report has showed that bank credit growth increased by 14.46 percent to Rs 95.53 trillion, while deposits grew in double-digits at 10.03 percent to Rs 122.26 trillion for the fortnight ending March 15. In the year-ago fortnight, advances stood at Rs 83.46 trillion and deposits at Rs 111.11 trillion. Markets continued their bull run to reach at fresh intraday high points in last leg of trade, taking support from a report that private equity (PE) and venture capital (VC) investments in the country stood at $20.5 billion across 786 transactions in 2018 on account of tech-enabled start-ups, e-commerce and information technology-enabled services. The funding in 2018 was the same as the investment in the preceding year.

On the global front, Asian markets ended mostly in red on Thursday with US recession concerns, Brexit-related uncertainty, and caution ahead of fresh US-China trade talks likely to keep investors nervous. European markets were trading in green. Back home, Auto sector were in focus with a report by research firm CRISIL stating that the impact of muted demand is going to hit the revenue of final quarter (Q4) of the automobile industry hardest in the financial year 2019-2020. It is expected to be slowest in the last three fiscals to a marginal 1.8 percent. 

The BSE Sensex ended at 38563.31, up by 430.43 points or 1.13% after trading in a range of 38148.44 and 38581.72. There were 22 stocks advancing against 9 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 1.31%, while Small cap index was up by 0.97%. (Provisional)

The top gaining sectoral indices on the BSE were TECK up by 1.72%, IT up by 1.63%, Realty up by 1.46%, Bankex up by 1.41% and FMCG up by 1.39%, while Metal down by 0.34%, Power down by 0.22% and Utilities down by 0.04% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech. up by 4.21%, SBI up by 3.51%, Sun Pharma up by 2.97%, Yes Bank up by 2.82% and Axis Bank up by 2.78%. (Provisional)

On the flip side, ONGC down by 1.84%, Tata Steel down by 1.81%, Bajaj Auto down by 1.30%, Power Grid down by 1.15% and NTPC down by 1.02% were the top losers. (Provisional)

Meanwhile, expressing optimism over monsoon condition this year, the India Meteorological Department’s director general, K.J. Ramesh has said that India's monsoon is likely to be a robust and healthy one this year provided there is not a surprise El Nino phenomenon. Monsoon rains, is crucial for the country and it is also a lifeblood for farm, is likely to arrive on the southern tip of Kerala state on around June 1 and retreat from the desert state of Rajasthan by September.

Ramesh said ‘It's really early to talk about the pattern that this year's monsoon will follow, but we do know that practically no one is predicting a strong El Nino.’ Plentiful monsoon rains could lift agricultural and wider economic growth and keep food prices and overall inflation subdued. He added that the Indian Ocean Dipole (IOD) phenomenon could also be a positive development.

The IMD defines average, or normal, rainfall as between 96 percent and 104 percent of a 50-year average of 89 cm for the entire four-month season beginning in June. In 2017 and 2018, rainfall was 95% and 91% of the long-term average, respectively. The IMD is likely to make its first official forecast of this year's monsoon rains by the middle of April.

The CNX Nifty ended at 11578.65, up by 133.60 points or 1.17% after trading in a range of 11452.45 and 11580.65. There were 36 stocks advancing against 13 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indiabulls Housing Finance up by 8.77%, Zee Entertainment up by 4.94%, Adani Ports &SEZ up by 4.10%, HCL Tech. up by 3.99% and SBI up by 3.45%. (Provisional)

On the flip side, Hindalco down by 2.36%, ONGC down by 2.34%, Tata Steel down by 1.82%, Dr. Reddys Lab down by 1.58% and Bajaj Auto down by 1.26% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 46.82 points or 0.65% to 7,241.01, France’s CAC rose 14.96 points or 0.28% to 5,316.20 and Germany’s DAX was up by 44.33 points or 0.39% to 11,463.37.

Asian markets ended mostly in red on Thursday, as sliding US bond yields rekindled growth concerns and the British Parliament failed to agree on an alternative to Prime Minister Theresa May's withdrawal plan. Japanese shares led regional losses as Brexit uncertainty coupled with fears of slowing growth drove investors to the safety of safe-haven assets such as gold and the yen. Further, Chinese shares ended lower as investors awaited a resumption of trade talks between the world's two largest economies, United States and China.