Markets end higher for second session in row

Indian equity benchmarks ended higher for a second session in a row on Monday on the back of gains in Utilities, Power and Oil & Gas stocks following strong global trends. Markets made an optimistic start and extended gains as the day progressed, as traders took encouragement 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. Some support also came with Union minister of state for micro, small and medium enterprises (MSMEs) -- Bhanu Pratap Singh Verma’s statement that the central government will increase the number of technology centres to provide tools, trained personnel and consultancy to MSMEs for stimulating growth of industries. Verma highlighted the crucial role played by the sector during the COVID-19 crisis.

However, in the second half, markets trimmed some of the intraday gains, as traders got anxious after the Reserve Bank of India said India’s foreign exchange reserves dropped $325 million to $560.942 billion as of February 24, making it the fourth consecutive week of decline in the kitty. Some cautiousness also came as External Affairs Minister S Jaishankar conveyed to his Chinese counterpart Qin Gang at a meeting that the state of India-China relations is ‘abnormal’ as their talks focused on addressing the challenges in bilateral ties, especially that of peace and tranquility in the border areas.

But, markets managed to end the session higher, as some optimism remained among traders with a report from the National Statistical Office (NSO) showing that the annual per capita (net national income) at current prices is estimated at Rs 1,72,000 in 2022-23, up from Rs 86,647 in 2014-15, suggesting an increase of about 99 per cent. Some support also came as Joint Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Sanjiv Singh stated that the government is working to bring a national retail trade policy for brick and mortar retail traders, in order to promote ease of doing business. He added that the policy would also help in providing better infrastructure and more credit to traders.

On the global front, Asian markets settled mostly higher on Monday, while European markets were trading mostly in green, following the broadly positive cues from global markets, amid easing concerns about the outlook for interest rates following recent comments from Federal Reserve officials and the latest economic data. The markets also reflected optimism about the outlook for the global economy following upbeat data from China and Europe. A private survey showed activity in China's services sector expanded at the fastest pace in six months in February, while a separate report showed a reading on eurozone business activity reached an eight-month high.

Finally, the BSE Sensex rose 415.49 points or 0.69% to 60,224.46 and the CNX Nifty was up by 117.10 points or 0.67% to 17,711.45.

The BSE Sensex touched high and low of 60,498.48 and 60,005.65, respectively. There were 24 stocks advancing against 6 stocks declining on the index.

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

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 up by 1.23%, while Realty down by 0.54% and Metal down by 0.53% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.79%, NTPC up by 2.49%, Power Grid Corporation up by 2.25%, Bajaj Finserv up by 1.93% and Infosys up by 1.88%. On the flip side, Tata Steel down by 1.22%, Larsen & Toubro down by 0.50%, Indusind Bank down by 0.46%, Sun Pharma down by 0.13% and Ultratech Cement down by 0.04% were the top losers.

Meanwhile, Union minister of state for micro, small and medium enterprises (MSMEs) -- Bhanu Pratap Singh Verma has said the central government will increase the number of technology centres to provide tools, trained personnel and consultancy to MSMEs for stimulating growth of industries. Verma highlighted the crucial role played by the sector during the COVID-19 crisis.

He stated the MSME sector plays a major role in the development of manufacturing as well as services and contributes significantly to the growth of the Indian economy. MSMEs also generate the largest employment after the agriculture sector. Moreover, it said the technology centres, set up countrywide by the Ministry of MSME, offer stimulus for growth and integrated development of industries by way of providing quality tools, trained personnel and consultancy.

He also said the ministry is in the process of setting up more such technology centres across the country to cater to increasing technological needs of the MSME sector owing to competitiveness in the global market. Such centres will also fulfil the MSME sector's demand for skilled manpower to become competitive globally and self-reliant in the domestic market.

The CNX Nifty traded in a range of 17,799.95 and 17,671.95. There were 39 stocks advancing against 10 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Adani Enterprises up by 5.45%, Tata Motors up by 2.92%, ONGC up by 2.56%, NTPC up by 2.35% and Power Grid Corporation up by 2.32%. On the flip side, Britannia Industries down by 1.97%, Tata Steel down by 1.07%, JSW Steel down by 1.04%, Hindalco down by 0.58% and Larsen & Toubro down by 0.56% were the top losers.

European markets were trading mostly in green; France’s CAC rose 39.68 points or 0.54% to 7,387.80 and Germany’s DAX gained 42.34 points or 0.27% to 15,620.73, while UK’s FTSE 100 decreased 3.36 points or 0.04% to 7,943.75.

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%.