Post Session: Quick Review

Indian equity benchmarks gained traction to end near their intraday high points on Tuesday’s trading session. After a cautious start of the day, key indices remained in red terrain in the first half of trading session, as rating agency Fitch in its Global economic Outlook-March 2022 has slashed India's growth forecast for the next fiscal to 8.5 per cent from 10.3 per cent.  The agency slashed India's growth forecast on account of sharply higher energy prices. Traders remained cautious, after Reserve Bank of India (RBI) Governor Shaktikanta Das said that all COVID-related liquidity relief measures extended by the central bank have come with a sunset date and would be withdrawn in due course.

However, in the second half of trading session, markets turned positive and traded with strong gains, on the back of positive cues from the global markets. Some support came with Reserve Bank Governor Shaktikanta Das’ statement that the RBI will continue to ensure adequate liquidity to support the economy, which is facing many headwinds in the form of soaring crude oil and key commodity prices following the Russian invasion of Ukraine. Besides, a parliamentary panel suggested that the government should extend the period of repayment of loans under the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector. The Parliamentary standing committee on industry has also asked the government to digitise the GST system to ensure paperless refund of claims.

On the global front, European markets were trading higher amid higher oil prices and gains for banks following hawkish comments from the U.S. Federal Reserve chair. Asian markets settled mostly higher on Tuesday, after Taiwan's export orders increased more than expected in February. The data from the Ministry of Economic Affairs showed that export orders rose 21.1 percent year-on-year in February. Back home, insurance companies stocks were in focus with a private report stating that the government is soon likely to announce a plan to strengthen state-run general insurance firms, including details of the capital infusion of about Rs 5,000 crore that it has already approved.

The BSE Sensex ended at 57989.30, up by 696.81 points or 1.22% after trading in a range of 56930.30 and 58052.87. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.17%, while Small cap index up by 0.15%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 1.96%, Oil & Gas up by 1.94%, IT up by 1.93%, TECK up by 1.76% and Bankex up by 1.07%, while Realty down by 1.06%, FMCG down by 0.71%, Healthcare down by 0.47% and Consumer Durables down by 0.47% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tech Mahindra up by 3.83%, Reliance Industries up by 2.59%, Bajaj Finserv up by 2.46%, ITC up by 2.21% and TCS up by 2.09%. On the flip side, Hindustan Unilever down by 2.81%, Nestle down by 2.49%, NTPC down by 0.08% and Sun Pharma down by 0.06% were the top losers. (Provisional)

Meanwhile, with an aim to boost domestic agriculture sector, environment benefits, reducing import dependency and savings in foreign exchange, the Minister of State for Petroleum and Natural Gas, Rameswar Teli has said that the Government is promoting Ethanol Blended Petrol (EBP) Programme.

The minister noted that ethanol from sugarcane route is not sufficient to achieve blending targets and for other uses. In view of surplus availability of food grains like maize and rice, ethanol from damaged food grains, maize and surplus rice with FCI has been allowed.

Besides, the Government is encouraging farmers to diversify from water intensive crops like rice, sugarcane, etc. to more sustainable crops like maize. Further, National Food Security Mission (NFSM) is being implemented in the country for increasing the production and productivity of food-grains including maize. The Minister also said that the Government is already providing subsidized food grains to more than 80 crore beneficiaries across the country through ‘PM Gareeb Kalyan Yojana’.

The CNX Nifty is currently trading at 17315.50, up by 197.90 points or 1.16% after trading in a range of 17006.30 and 17334.40. There were 42 stocks advancing against 8 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tech Mahindra up by 3.95%, BPCL up by 3.14%, Tata Motors up by 2.90%, Reliance Industries up by 2.58% and Indian Oil up by 2.25%. On the flip side, Hindustan Unilever down by 2.81%, Nestle down by 2.50%, Britannia down by 2.44%, Cipla down by 1.69% and Divi's Lab down by 0.17% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 44.15 points or 0.59% to 7,486.54, France’s CAC increased 41.90 points or 0.64% to 6,624.23 and Germany’s DAX was up by 117.15 points or 0.82% to 14,444.12.

Asian markets settled mostly higher on Tuesday despite concerns over rising geopolitical tensions and a hawkish commentary from Federal Reserve Chairman Jerome Powell. China's Shanghai Composite index ended higher after the country's cabinet pledged measures to boost market confidence, shore up economic stability and keep capital market development stable and healthy. Japanese shares ended sharply higher as markets reopened after a holiday. The Nikkei average extended gain for a sixth straight session amid optimism that a weakening yen could bolster exporters' outlook.