Benchmarks trade in green in early deals

Indian equity benchmarks have made an optimistic start and are trading in green in early deals, as traders took support with report that the Reserve Bank of India (RBI) has injected a total liquidity of Rs 2.98 lakh crore in the market in 2018-19. Traders remained optimistic with the RBI’s data showing that foreign investment of Indian companies grew 18 per cent to $2.69 billion in March as compared to the year-ago period. However, gains remain capped as some cautiousness prevailed with report that after 108 economists and former RBI Governor Raghuram Rajan, International Monetary Fund’s (IMF) Chief Economist Gita Gopinath expressed doubt over India's growth rate, saying that there are still some issues with the way India calculates it.

On the global front, Asian markets were trading mixed as investors remain cautious with upcoming corporate earnings season and the release of China's trade data due later in the day. Although stronger US economic data helped offset some concerns about global growth. The US markets ended mostly lower on Thursday as investors looked ahead to bank results that will kick off first-quarter earnings season.

Back home, traders took note of NITI Aayog and Rocky Mountain Institute (RMI) study stating that Electric Vehicles (EVs) sold in India through 2030 can save 474 million tonne of oil equivalent, worth Rs 15.2 lakh crore over their lifetime. On the sectoral front, banking sector stocks remained in focus with the RBI’s data showing that bank credit rose 13.24 percent to Rs 97.67 lakh crore for the fortnight to March 29, while deposits grew by 10.03 percent to Rs 125.72 lakh crore during the same period.

The BSE Sensex is currently trading at 38689.03, up by 82.02 points or 0.21% after trading in a range of 38635.76 and 38721.01. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.30%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were IT up by 0.78%, TECK up by 0.71%, Oil & Gas up by 0.63%, Utilities up by 0.49% and Energy was up by 0.48%, while Capital Goods down by 0.37%, Industrials down by 0.10% was Auto was down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.02%, Infosys up by 1.00%, HCL Tech up by 0.90%, Tata Steel up by 0.75% and Yes Bank was up by 0.71%. On the flip side, Tata Motors - DVR down by 1.01%, Tata Motors down by 0.82%, Larsen & Toubro down by 0.62%, SBI down by 0.44% and HDFC was down by 0.28% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest report has stated that banks closed fiscal 2018-19 (FY19) with robust disbursals. The data showed that bank credit rose 13.24% to Rs 97.67 lakh crore for the fortnight to March 29, while deposits grew by 10.03% to Rs 125.72 lakh crore during the same period. This is the second consecutive double-digits credit growth after the same had declined to 4.54% in FY17 at Rs 78.41 lakh crore, which was the lowest since 1963.

As per the data, non-food bank credit increased by 13.2% in February 2019 as compared with an increase of 9.8% in the year-ago period. Loans to the services sector almost doubled with a 23.7% growth in February 2019 compared to 14.2% in the same month last year. Advances to agriculture and allied activities increased by 7.5% in February 2019 compared to an increase of 9% in February 2018. Credit to the industry rose by 5.6% in February, up from an increase of 1% in February 2018. Credit to the infrastructure, chemical and chemical products, and all engineering sectors accelerated. However, credit growth to basic metal & metal products, textiles, and food processing decelerated/contracted. Personal loans rose 16.7% in February down from 20.4% in February 2018.

Besides, in the year-ago fortnight, deposits were at Rs 114.26 lakh crore and advances at Rs 86.25 lakh crore. In FY17, aggregate deposits in the banking system grew a mere 6.7 percent in 2017-18, while credit grew still lower at 4.54 percent, the lowest since fiscal 1963. Bank deposit growth fell to a five-decade low in year to March 2017 as demonetisation bonanza withered. In the previous fortnight to March 15, 2019 credit demand had grown by 14.46 per cent to Rs 95.53 lakh crore, while deposits increased by 10.03 per cent to Rs 122.26 lakh crore.

The CNX Nifty is currently trading at 11617.10, up by 20.40 points or 0.18% after trading in a range of 11600.40 and 11627.20. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 1.05%, Asian Paints up by 1.02%, BPCL up by 0.98%, Infosys up by 0.96% and Wipro was up by 0.94%. On the flip side, Tata Motors down by 0.92%, Grasim Industries down by 0.81%, Indiabulls Housing down by 0.70%, Larsen & Toubro down by 0.50% and HDFC was down by 0.48% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 115.57 points or 0.53% to 21,826.95, Jakarta Composite gained 5.83 points or 0.09% to 6,416.00 and KOSPI was up by 1.56 points or 0.07% to 2,226.00.

On the flip side, Straits Times trembled 5.24 points or 0.16% to 3,325.58, Shanghai Composite declined 14.12 points or 0.44% to 3,175.84, Taiwan Weighted dropped 22.96 points or 0.21% to 10,785.81 and Hang Seng was down by 107.25 points or 0.36% to 29,732.20.