Post Session: Quick Review

Extending their gaining streak for second straight session, Indian equity benchmarks ended Friday’s trade on an optimistic note, with Nifty settling above crucial 11,600 mark, while Senesx ended just shy of 38,750 mark. Key indices made positive start, 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. Traders took note of a private report that Indian companies are lining up to seek dollar-denominated debt as global interest rates soften, but only a few are likely to find it as foreign investors remain wary about the credit quality of many.

However, markets erased initial gains to turn negative in the afternoon deals as investors awaited cues from release of key macroeconomic data and quarterly results of IT majors TCS and Infosys. Some caution also prevailed in the markets 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.

But, selling proved short-lived as markets bounced back in late afternoon trade, due to buying witnessed in FMCG, Utilities and Power stocks. Traders also found solace 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. Meanwhile, the Reserve Bank of India (RBI) might reach out to the Election Commission (EC) before releasing its new set of guidelines to banks that would replace its February 12 circular that the Supreme Court quashed last week.

On the global front, Asian markets ended mostly higher on Friday as positive US data and optimism over a potential US-China trade deal helped offset growth worries to some extent. European markets were trading in green, as investors await Chinese trade data due later in the day. Traders also anticipate a good set of figures following unexpectedly strong March manufacturing and inflation data. Back home, sugar stocks were in focus, as a report stated that the country's sugar exports surged to 17.44 lakh tonnes so far in the current marketing year ending September, as against about 5 lakh tonnes shipped in the entire 2017-18.

The BSE Sensex ended at 38746.80, up by 139.79 points or 0.36% after trading in a range of 38554.79 and 38818.87. There were 17 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.32%, while Small cap index was up by 0.38%. (Provisional)

The top gaining sectoral indices on the BSE were FMCG up by 1.74%, Utilities up by 1.10%, Power up by 1.01%, Auto up by 0.99% and Consumer Discretionary Goods & Services up by 0.72%, while Telecom down by 0.85%, Capital Goods down by 0.45%, Energy down by 0.39% and Consumer Durables down by 0.38% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were ITC up by 3.14%, Maruti Suzuki up by 2.29%, Axis Bank up by 1.54%, Vedanta up by 1.52% and Hero MotoCorp up by 1.39%. (Provisional)

On the flip side, Bharti Airtel down by 1.55%, Bajaj Finance down by 1.37%, Larsen & Toubro down by 1.28%, Tata Motors down by 1.08% and Tata Steel down by 0.74% were the top losers. (Provisional)

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 ended at 11635.55, up by 38.85 points or 0.34% after trading in a range of 11578.80 and 11657.35. There were 29 stocks advancing against 20 stocks declining on the index. (Provisional)

The top gainers on Nifty were GAIL India up by 4.09%, ITC up by 3.26%, Maruti Suzuki up by 2.18%, Cipla up by 1.66% and Zee Entertainment up by 1.63%. (Provisional)

On the flip side, Indiabulls Housing Finance down by 2.03%, Indian Oil Corp. down by 1.55%, Bajaj Finance down by 1.37%, Larsen & Toubro down by 1.37% and Bharti Airtel down by 1.10% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 28.28 points or 0.38% to 7,446.23, France’s CAC rose 13.47 points or 0.25% to 5,499.19 and Germany’s DAX was up by 53.64 points or 0.45% to 11,988.84.

Asian markets ended mostly higher on Friday as positive US data and optimism over a potential US-China trade deal helped offset growth worries to some extent. Japanese shares settled at four-month high as investors braced for earnings and an upcoming 10-day holiday in Japan. Meanwhile, Chinese shares ended flat, as better-than-expected exports brought some relief to investors looking for signs of stabilization in the world’s second-largest economy. Chinese trade data proved to be a mixed bag, with exports rebounding to a five-month high while imports fell more than expected. Official data showed that China's exports rose 14.2 percent in March from a year earlier, beating expectations and marking the strongest growth in five months. Imports dropped an annual 7.6 percent, worse than forecasts for a 1.3 percent fall and widening from February's 5.2 percent fall.