Post session: Quick review

The Indian markets extended their journey to northward on Monday. The mood of the markets was optimistic from the beginning under the influence of US markets. Traders reacted positively to a report from the Institute for Supply Management showing a very slight slowdown in the pace of growth in U.S. service sector activity in the month of February. Markets- men continued to pick up stocks at relatively reduced levels following recent weakness. A positive opening of European markets also lent a helping hand to the Indian equity markets. Besides, U.S. 10-year Treasury yield pulled back after jumping to a three-month closing high above 4.0 percent. However, selling in metal counters forced markets to cut some gains in late afternoon session. Indices showed a tremendously good performance for second consecutive day. 

Bourses made gap-up opening amid easing concerns about the outlook for interest rates after comments from Federal Reserve officials, and optimism about the outlook for the global economy after upbeat data from China and Europe. Further, markets maintained their firm trade in afternoon session, as sentiments remained positive with Commerce and Industry Minister Piyush Goyal’s statement that the country’s goods and services exports are expected to cross $750 billion this fiscal despite the global economic uncertainties. In 2021-22, the country's goods and services exports touched an all-time high of $422 billion and $254 billion respectively, taking the total shipments to $676 billion. However, in late afternoon session, indices trimmed some gains, as traders booked some profit.

On the global front, European markets were trading mostly in green with Telecom Italia jumping to the top of the continent-wide STOXX 600 index, while mining companies slid after top consumer China set a modest annual growth target. Asian markets ended mostly in green, over murmurs that the US Federal Reserve may loosen its monetary tightening but stocks in Hong Kong and China were muted after Beijing announced its lowest economic growth target in decades. Back home, Federation of Automobile Dealers Associations (FADA) President Manish Raj Singhania has said automobile retail sales in India witnessed a double-digit year-on-year growth in February 2022 driven by robust sales across segments including passenger vehicles and two-wheelers.

The BSE Sensex ended at 60,199.85, up by 390.88 points or 0.65% after trading in a range of 60,005.65 and 60,498.48. There were 25 stocks advancing against 5 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.74%, while Small cap index was up by 0.89%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 2.75%, Power up by 2.51%, Oil & Gas up by 1.90%, Energy up by 1.75% and IT was up by 1.23%, while Realty down by 0.54% and Metal was down by 0.53% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Motors up by 2.97%, NTPC up by 2.52%, Power Grid up by 2.30%, Bajaj Finserv up by 1.98% and Infosys up by 1.86%. On the flip side, Tata Steel down by 1.08%, Larsen & Toubro down by 0.49%, Indusind Bank down by 0.26%, Sun Pharma down by 0.15% and Ultratech Cement down by 0.04% were the top losers. (Provisional)

Meanwhile, expressing optimism over India’s exports growth, Commerce and Industry Minister Piyush Goyal has said that the country’s goods and services exports are expected to cross $750 billion this fiscal despite the global economic uncertainties. In 2021-22, the country's goods and services exports touched an all-time high of $422 billion and $254 billion respectively, taking the total shipments to $676 billion. Due to the global demand slowdown, India's exports contracted for the second consecutive month in January, dipping by 6.6 per cent to $32.91 billion.  During April-January this fiscal, goods shipments rose by 8.5 per cent to $369.25 billion, while services exports were estimated at $272 billion in the period.

The minister said that sectors which would help in promoting exports include manufactured goods, agri products, labour intensive items, and high quality products. He expressed confidence that by 2030, India's goods and services exports would touch $2 trillion. Regarding widening trade deficit with China, he said the government is taking steps to boost domestic manufacturing of quality goods which would help in containing imports.  He added that until 2000-01, Indo-China total trade was about $1 billion and even till 2004, the trade was ‘probably’ in the range of $4 billion and the trade deficit was about $1 billion.

Goyal said ‘After 2004, almost an outreach was done to engage more with China, to attract Chinese goods into the country in a big way.  I do not want to politicise this subject…But between 2004 and 2014, we saw trade grow very very rapidly and the trade deficit went up by nearly 35 times’. He said that the previous governments should be held accountable for the jump in the trade deficit with China. He said ‘But the nation has held them accountable for more than one occasion already and will probably continue to do that’, and added that the earlier regime in India actually decimated Indian manufacturing capability and it never allowed Indian manufacturing to flourish. However, he said now the government is creating that ecosystem to boost domestic manufacturing.

The CNX Nifty ended at 17,711.45, up by 117.10 points or 0.67% after trading in a range of 17,671.95 and 17,799.95. There were 37 stocks advancing against 12 stocks declining on the index, while 1 stock remained unchanged. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 5.50%, Tata Motors up by 2.83%, ONGC up by 2.56%, NTPC up by 2.43% and Power Grid up by 2.27%. On the flip side, Britannia down by 2.09%, Tata Steel down by 1.26%, JSW Steel down by 1.18%, Hindalco down by 0.58% and Indusind Bank down by 0.51% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC rose 29.91 points or 0.41% to 7,378.16 and Germany’s DAX was up by 40.88 points or 0.26% to 15,620.48. On the flip side, UK’s FTSE 100 was down by 21.65 points or 0.27% to 7,925.10.

Asian markets settled mostly higher on Monday tracking Wall Street’s gains last Friday with persisting fears that the US Federal Reserve will keep raising interest rates to control inflationary pressures. Meanwhile, investors are awaiting testimony from US Fed Chair Jerome Powell and upcoming central bank decisions in Japan and Australia. Seoul shares gained after data showed South Korea’s inflation eased to below 5 percent for the first time in 10 months in February. Japanese shares rose amid expectations that Japanese central bank will maintain its ultra-loose policy to support economy. Although, Chinese shares declined as the country set a modest target for economic growth this year of around 5%, down from last year's target of 5.5%.