Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in the early noon session, following gains in Realty, Metal and Basic Materials stocks. Healthy buying was observed in blue-chip stocks like HCL Technologies, Tata Steel, HDFC and Maruti Suzuki. Positive cues from global markets and expectations of a rate cut the Reserve Bank of India also boosted Indian shares. Some optimism came with a report that India’s exports are likely to register an all-time high of $330 billion in FY19, amid slowing global merchandise trade growth. Besides, March exports are expected to be above $30 billion, buoyed by strong performances by engineering and pharmaceuticals sectors. Investors’ mood remained bullish with Asian Development Bank’s report that India's growth is set to pick up and is expected to grow 7.2% in the current fiscal on strengthening consumption. Meanwhile, India and Ukraine has discussed ways to enhance bilateral trade and investments with a view to increase economic cooperation. Both sides have agreed that trade was far below the potential and there was a need to step up their cooperation to enlarge the trade basket and increase the bilateral trade and investment. There is trade deficit on the part of Indian side and both sides agreed to find out the modalities to reduce it further.

On the global front, Asian markets were trading in green, as investors cheered signs of progress in U.S.-China trade talks and brisk economic data, while oil approached the key $70 per barrel mark. Back on street, in scrip specific development, Mahindra & Mahindra (M&M) gained despite reporting a 31% decline in total tractor sales in March at 19,688 units. The company had sold 28,477 units in March last year.

The BSE Sensex is currently trading at 39213.93, up by 157.28 points or 0.40% after trading in a range of 39141.09 and 39270.14. There were 20 stocks advancing against 10 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.43%, while Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were Realty up by 1.43%, Metal up by 1.03%, Basic Materials up by 0.58%, Auto up by 0.54%, Consumer Durables was up by 0.51%, while Oil & Gas down by 0.59%, TECK down by 0.38%, IT down by 0.33%, Capital Goods down by 0.14% and PSU was down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 2.58%, Tata Steel up by 2.29%, HDFC up by 1.87%, Maruti Suzuki up by 1.70% and Indusind Bank was up by 1.67%. On the flip side, Infosys down by 0.86%, Larsen & Toubro down by 0.69%, Axis Bank down by 0.53%, TCS down by 0.50% and Hindustan Unilever was down by 0.39% were the top losers.

Meanwhile, European Union (EU) has dragged India into World Trade Organisation’s (WTO) dispute settlement mechanism over imposition of import duties on certain Information and Communication Technology (ICT) product, alleging breach of global trade norms. The EU is challenging the introduction of import duties of between 7.5 and 20 percent for a wide range of ICT products, such as mobile phones and components, as well as integrated circuits.

EU has requested consultations with the Indian government under WTO rules governing the settlement of disputes with regard to the tariff treatment that the country accords to certain goods in the ICT sector. EU said that despite its (India) earlier legally binding commitment in the WTO not to charge any duties on these products, India has been applying duties ranging from 7.5 percent to 20 percent. It also said that these import duties are therefore in clear breach by India of WTO rules. It indicated that the levies affect EU exports worth Euro 600 million per year. It added that technological innovation keeps companies competitive in the global market and supports hundreds of thousands of high value jobs across Europe.

In October 2018, India hiked the import duty on certain communication items, including base station and digital line systems, to 20 percent, in efforts to check widening current account deficit (CAD) by curbing imports. Seeking consultation is the first step of dispute settlement process as per WTO rules. If the consultations requested with both India do not result in a satisfactory solution, the EU can request that the WTO set up a panel in the case to rule on the issue raised.

The CNX Nifty is currently trading at 11740.90, up by 27.70 points or 0.24% after trading in a range of 11731.10 and 11761.00. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing up by 4.95%, Tata Steel up by 2.45%, HCL Technologies up by 2.45%, Indusind Bank up by 1.85% and HDFC was up by 1.72%. On the flip side, BPCL down by 2.76%, Indian Oil Corporation down by 1.58%, Eicher Motors down by 1.50%, Tech Mahindra down by 1.30% and Infosys was down by 1.24% were the top losers.

All Asian market are trading in green; KOSPI rose 21.19 points or 0.97% to 2,198.37, Shanghai Composite gained 13.15 points or 0.41% to 3,189.97, Hang Seng increased 259.20 points or 0.87% to 29,883.87, Taiwan Weighted strengthened 23.62 points or 0.22% to 10,713.92, Straits Times advanced 28.41 points or 0.87% to 3,308.19 and Nikkei 225 was up by 190.74 points or 0.89% to 21,696.05.