Sensex hits 39,000, Nifty above 11,650 mark

Indian equity markets maintained their upward momentum in the early noon session, following gains in Metal, Basic Materials and Auto stocks amid positive global sentiment. Healthy buying was observed in blue-chip stocks like Tata Motors - DVR, Tata Motors, Vedanta, Tata Steel and Maruti Suzuki. Sentiments remained up-beat with Chief Economic Advisor Krishnamurthy Subramanian’s statement that inflation has remained well under control during the Modi government’s tenure, providing relief to the middle class and the poor. Low prices, strong monetary policy framework by the Reserve Bank of India (RBI) and economic reforms have boosted the domestic consumption in the country. Further, hopes of rate cut by RBI by another 25 basis points on April 04, to boost economic activities amid fears of global slowdown impacting domestic growth prospects too accelerated buying activity. Investors’ took note that despite heavy fund infusion by Foreign portfolio investment (FPIs) over the past two month, the domestic financial market suffered a foreign fund outflow of over Rs 44,500 crore on net basis in the fiscal 2018-19 as macroeconomic headwinds weighed on investor sentiment through the year. Meanwhile, Economic Affairs Secretary Subhash Chandra Garg has said that the central government will borrow Rs 4.42 lakh crore from the market in the first half of the 2019-20 fiscal (H1 FY20). As per the Union Budget, the gross borrowing was pegged at Rs 7.1 lakh crore for 2019-20, higher than Rs 5.71 lakh crore estimated for the ongoing fiscal.

On the global front, Asian markets were trading mostly in green, as signs of progress in US-China trade talks and firmer Wall Street shares supported sentiment, although another defeat for British Prime Minister Theresa May’s proposed Brexit deal added to the pound’s recent woes. Back on street, India has once again delayed the implementation of higher tariffs on some goods imported from the United States to May 2, according to a government order. The new tariff structure was to come into force from April 1. Meanwhile, the monthly sales numbers for the auto companies have started trickling in, as Maruti Suzuki India has reported total sales of 158,076 units in March 2019, as compared 160,598 units in March 2018, registering marginal fall of 1.6%. This includes 147,613 units in domestic market and 10,463 units of exports.

The BSE Sensex is currently trading at 38916.98, up by 244.07 points or 0.63% after trading in a range of 38844.81 and 39028.67. There were 23 stocks advancing against 7 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.95%, while Small cap index was up by 1.30%.

The top gaining sectoral indices on the BSE were Metal up by 3.01%, Basic Materials up by 1.86%, Auto up by 1.72%, Industrials up by 1.56% and IT was up by 1.53%, while Oil & Gas down by 0.26%, Energy down by 0.22% were the only losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 6.59%, Tata Motors up by 5.94%, Vedanta up by 4.93%, Tata Steel up by 3.10% and Maruti Suzuki was up by 2.28%. On the flip side, Indusind Bank down by 1.58%, ONGC down by 0.72%, HDFC down by 0.69%, Coal India down by 0.61% and Axis Bank was down by 0.20% were the top losers.

Meanwhile, the government has notified a new Indian Accounting Standard (Ind AS) 116 that will bring in more transparency in recognition and disclosures about leases in companies' balance sheets. Ind AS 116-implementing from April 1, 2019 -- is likely to have a significant impact on various industries, including aviation where airlines mostly operate planes on lease.

The Standard sets out the principles for the recognition, measurement, presentation, and disclosure of leases. It has been notified by the corporate affairs ministry. The standard will help in ensuring more transparency when it comes to recognition of leases by companies and also prevent ‘window dressing’ of accounts.

Leasing of aircraft rather than outright purchase is a common practice in the airlines industry worldwide. With the new accounting standard is in place, the carriers would have to show all such leases on their respective balance sheets which would result in substantial new assets and liabilitie. Ind AS 116 is the equivalent of IFRS (International Financial Reporting Standards) 116.

The CNX Nifty is currently trading at 11686.80, up by 62.90 points or 0.54% after trading in a range of 11664.60 and 11715.65. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.82%, Hindalco up by 5.60%, Vedanta up by 4.50%, GAIL India up by 3.61% and Tata Steel was up by 2.89%. On the flip side, Indian Oil down by 3.07%, UPL down by 1.79%, Indusind Bank down by 1.42%, BPCL down by 1.33% and Indiabulls Housing was down by 1.32% were the top losers.

Asian markets were trading mostly in green, KOSPI rose 29.50 points or 1.38% to 2,170.17, Shanghai Composite gained 83.50 points or 2.7% to 3,174.26, Hang Seng increased 448.88 points or 1.55% to 29,500.24, Nikkei 225 surged 281.44 points or 1.33% to 21,487.25, Taiwan Weighted strengthened 8.37 points or 0.08% to 10,649.41 and Straits Times was up by 28.32 points or 0.88% to 3,241.20. On the flip side, Jakarta Composite was down by 7.21 points or 0.11% to 6,461.55.