Markets trade with traction; Nifty above 11,750 mark

Indian equity markets made an optimistic start and are trading in fine fettle in morning deals on Tuesday, following positive trade data and India Meteorological Department (IMD) monsoon forecast. The government data has showed that India's exports grew by 11% to $32.55 billion in March on account of higher growth in sectors including pharma, chemicals and engineering. Imports rose by 1.44% to $43.44 billion during the month. However, trade deficit narrows to $10.89 billion as compared to $13.51 billion in the same month last year. Besides, the IMD has said that the country is likely to have near normal monsoon this year with a well distributed rainfall which could be beneficial for the agriculture sector. It added that the seasonal rainfall is likely to be 96% of the Long Period Average (LPA) with a model error of plus or minus 5%. It also said weak El Nino conditions are likely to prevail during the monsoon season with reduced intensity.

The global cues also remain positive with all the Asian markets trading higher after strong export and banking data from China last week eased investors' concerns about the health of the world's second-largest economy. Back home, textile industry stocks were buzzing with report that India's cotton crop production may fall 7.87% to 343 lakh bales (of 170 kg each) in the 2018-19 season, mainly due to drought in many cotton-growing regions. In scrip specific development, Deepak Fertilisers & Petrochemicals Corporation gained over 8% on commencing production of Nitric Acid in Gujarat. The new facility with project cost of approximately Rs 550 crore, has production capacities of around 92 KTPA for Concentrated Nitric Acid (CNA) and around 149 KTPA for Diluted Nitric Acid (DNA).

The BSE Sensex is currently trading at 39147.30, up by 241.46 points or 0.62% after trading in a range of 39038.81 and 39160.50. There were 25 stocks advancing against 5 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.25%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Energy up by 1.07%, Metal up by 0.99%, Bankex up by 0.96%, Oil & Gas up by 0.90% and PSU was up by 0.76%, while Realty was down by 0.03% was the only losing index on BSE.

The top gainers on the Sensex were ICICI Bank up by 3.16%, Coal India up by 2.12%, Vedanta up by 1.87%, Asian Paints up by 1.20% and Hero MotoCorp was up by 1.13%. On the flip side, Tata Motors down by 0.97%, Tata Motors - DVR down by 0.58%, Infosys down by 0.45%, Bharti Airtel down by 0.27% and HDFC Bank was down by 0.03% were the top losers.

Meanwhile, easing concerns over farm and economic growth in the country, the India Meteorological Department (IMD) in Long Range Forecast for 2019 southwest monsoon rainfall stated that the country is likely to have 'near normal' monsoon this year with a well distributed rainfall which could be beneficial for the agriculture sector.

Secretary Ministry of Earth Sciences (MoES) M Rajeevan has said that the seasonal rainfall is likely to be 96 per cent of the Long Period Average (LPA) with a model error of plus or minus 5 per cent. He said weak El Nino conditions are likely to prevail during the monsoon season with reduced intensity. He added that there could some effect of the El Nino in June, but monsoon may pick up pace from July. IMD Director General K J Ramesh said overall, the country is expected to have well distributed rainfall scenario during the monsoon season which will be beneficial to farmers in the country during the ensuing kharif season. Several parts of the country are witnessing agricultural distress.

The LPA of the season rainfall over the country as a whole for the period 1951-2000 is 89 centimetres. Significantly, the IMD has introduced a category of 'near normal' for rainfall between 96-104 per cent of the LPA this year. In its forecast last year, the rainfall between 96-104 per cent of the LPA was classified as ‘normal’ category. Rainfall of 90 to 96 per cent of the LPA is below normal. 96 per cent rainfall borders on below normal and normal category.

The CNX Nifty is currently trading at 11758.85, up by 68.50 points or 0.59% after trading in a range of 11731.55 and 11760.75. There were 43 stocks advancing against 6 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were ICICI Bank up by 3.16%, Indian Oil Corporation up by 2.37%, Coal India up by 2.16%, Vedanta up by 2.11% and Bharti Infratel was up by 1.91%. On the flip side, Tata Motors down by 1.17%, Infosys down by 0.78%, Ultratech Cement down by 0.26%, Bharti Airtel down by 0.20% and HDFC Bank was down by 0.20% were the top losers.

All the Asian market were trading in green; Nikkei increased 225 55.83 points or 0.25% to 22,224.94, Hang Seng surged 188.35 points or 0.63% to 29,999.07, KOSPI gained 0.80 points or 0.04% to 2,243.68, Shanghai Composite rose 35.27 points or 1.11% to 3,213.06, Straits Times advanced 4.40 points or 0.13% to 3,330.26, Taiwan Weighted strengthened 25.28 points or 0.23% to 10,900.88 and Jakarta Composite was up by 13.85 points or 0.22% to 6,449.00.