Bourses end last trading day of FY23 on firm note

Indian equity benchmarks ended the last trading day of the financial year 2022-23 (FY23) on a firm note, with Sensex and Nifty regaining crucial psychological levels of 58,990 and 17,350, respectively. All sectors ended in green with IT, TECK and Banking being major gainers. Markets made a gap up opening and continuously strengthen throughout the session tracking firm global markets and supportive local cues. Traders took encouragement with Chief Economic Advisor (CEA) V Anantha Nageswaran expressing optimism over India’s economic growth and said that the country’s economy is likely to grow at the rate of 6.5 per cent in the coming decade on the back of the turnaround in financial and investment cycle.

Local bourses extended gains in late afternoon deals, as sentiments got a boost with the World Bank stating that India’s potential growth could benefit from accelerated implementation of an already ambitious reform agenda. Some optimism also came with Commerce and Industry Minister Piyush Goyal’s statement that India was in the ‘bright spot’ amid a series of economic challenges faced by many countries. Adding to the optimism, the government came out with Foreign Trade Policy (FTP) 2023 which seeks to boost the country's exports to $2 trillion by 2030 by shifting from incentives to remission and entitlement-based regime. Fresh foreign fund inflows also added to the positive momentum in the equity market. Foreign Portfolio Investors (FPIs) were net buyers on Wednesday as they bought equities worth Rs 1,245.39 crore, according to exchange data.

On the global front, European markets were trading higher after data showed Eurozone inflation has fallen sharply from 8.5 percent to 6.9 percent to reach its lowest level for a year in March following a decline in energy costs. Asian markets settled mostly higher on Friday with easing concerns about the global banking system as well as strong readings on Chinese manufacturing, services and construction activity helping boost investor sentiment. The upside, however, was capped by tough talk by Fed officials on the rate outlook. Key U.S. inflation data due later in the day is expected to provide additional clues on the Fed's monetary policy path.

Finally, the BSE Sensex rose 1031.43 points or 1.78% to 58,991.52 and the CNX Nifty was up by 279.05 points or 1.63% to 17,359.75.

The BSE Sensex touched high and low of 59,068.47 and 58,273.86, respectively. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.96%, while Small cap index was up by 1.35%.

The top gaining sectoral indices on the BSE were IT up by 2.52%, TECK up by 2.21%, Bankex up by 1.72%, Realty up by 1.64% and Energy up by 1.61%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Reliance Industries up by 4.29%, Nestle up by 3.30%, Infosys up by 3.19%, ICICI Bank up by 3.08% and Tata Motors up by 2.80%. On the flip side, Sun Pharma down by 0.77%, Asian Paints down by 0.27%, Bajaj Finance down by 0.24% and Titan Company down by 0.05% were the top losers.

Meanwhile, the World Bank in its latest report ‘Falling Long-Term Growth Prospects: Trends, Expectations, and Policies’ has said that India’s potential growth could benefit from accelerated implementation of an already ambitious reform agenda. The report said addressing the aftermath of financial sector distress in India could unlock significant growth. He said India has a less developed financial system than many of its peers, with a heavy state presence. To improve the sector’s efficiency and depth, reforms could be undertaken to further rationalise the role of public sector banks, ensure a level-playing field in the banking sector, and promote the development of capital markets.

On India’s infrastructure deficit, it said reforms suggested by the Task Force on the National Infrastructure Pipeline should be implemented, including improving project preparation processes, enhancing the capacity and participation of the private sector, improving contract enforcement and dispute resolution, and improving sources of financing. He stated said investment growth in India slowed from an annual average of 10.5 per cent in 2000-10 to 5.7 per cent in 2011-21. In India, structural bottlenecks, including unreliable power, poor road and rail networks, and arduous administrative requirements on business, have been barriers to investment over the past decade, along with banking sector weaknesses that have constrained investment finance.

It said warns that the global economy faces the prospect of a 'lost decade' on account of nearly all drivers of economic progress in recent history fading. It mentioned the global economy’s ‘speed limit’ - the maximum rate of long-term growth without causing inflation - is set to decline to its lowest point in three decades by 2030. It stated in the decade before COVID-19, a global slowdown in productivity - which is essential for income growth and higher wages - was already adding to concerns about long-term economic prospects.

The CNX Nifty traded in a range of 17,381.60 and 17,204.65. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 4.31%, Nestle up by 3.29%, Infosys up by 3.05%, ICICI Bank up by 3.04% and Tata Motors up by 2.88%. On the flip side, Apollo Hospital down by 1.30%, Sun Pharma down by 0.98%, Adani Ports & SEZ down by 0.74%, Asian Paints down by 0.23% and Bajaj Finance down by 0.18% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 14.96 points or 0.2% to 7,635.39, France’s CAC rose 39.61 points or 0.55% to 7,302.98 and Germany’s DAX gained 70.64 points or 0.46% to 15,593.04.

Asian markets settled mostly higher on Friday amid strong gains in Wall Street shares overnight following receding fears of a global banking crisis, while US inflation data due later in the day is expected to provide additional clues on the US Federal Reserve's monetary policy path. Japanese shares gained on the back of a weaker yen, while strong readings on industrial output and retail sales for February also supported sentiments. Moreover, Chinese and Hong Kong shares gained on China's economic recovery optimism with official data showed that China's manufacturing activity expanded at a slower pace in March, while China’s services and construction activity also remained strong.