Markets turn volatile after positive start

Indian equity benchmarks made positive start on Monday tracking firm global cues amid easing worries about a banking crisis, and data showing an unexpected slowdown in the annual rate of core consumer price growth in the U.S., while the stock market in Taiwan is closed for Children's Day holiday. Soon, domestic markets wiped out their opening gains and slipped into red terrain. But, indices managed to recover and are trading tad higher in early deals as value buying supported the markets.  Traders took some encouragement with report that GST collection grew 13 per cent in March to Rs 1.60 lakh crore - the second highest mop-up since the rollout of the indirect tax regime. Adding more optimism, Commerce and Industry Piyush Goyal exuded confidence that India’s merchandise and services exports will cross $2 trillion by 2030 from the current level of $765 billion.

However, there was some volatility in the markets ahead of three-day the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting starting from today (April 03) and outcome on April 06. There are expectations that the RBI may go in for 25 basis points hike in benchmark interest rate, probably the last in the current monetary tightening cycle that began in May 2022. On the sectoral front, autos stocks were in focus reacting to their monthly sales numbers. In stock specific development, CSB Bank rallied after the lender reported a 21.39 per cent rise in total deposits for March quarter.

The BSE Sensex is currently trading at 59009.99, up by 18.47 points or 0.03% after trading in a range of 58842.89 and 59204.82. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.31%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Auto up by 1.57%, Telecom up by 1.21%, Industrials up by 0.63%, Consumer Durables up by 0.57%, Realty up by 0.56%, while FMCG down by 0.41%, IT down by 0.16%, TECK down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.74%, Mahindra & Mahindra up by 1.40%, NTPC up by 1.03%, Bharti Airtel up by 0.95% and HCL Technologies up by 0.89%. On the flip side, Hindustan Unilever down by 1.32%, Tech Mahindra down by 1.02%, Nestle down by 0.89%, Infosys down by 0.61% and Asian Paints down by 0.57% were the top losers.

Meanwhile, exuding confidence over India’s exports growth, Commerce and Industry Piyush Goyal has said that the country’s merchandise and services exports will cross $2 trillion by 2030 from the current level of $765 billion, after he unveiled a ‘dynamic and responsive’ foreign trade policy. He said that goods exports have witnessed good growth considering the current global scenario while services exports may see a quantum jump in the current fiscal.

He said ‘we have to meet our exports targets going forward’ and added that ‘we will need to work a bit harder’ on goods exports. He further said ‘it shouldn’t be that by 2030, services exports cross $1 trillion while you (merchandise exports) lag behind. I am confident that we will cross $2 trillion by 2030’. The minister said he has asked the Department of Commerce to undertake a ‘massive focused concentrated’ outreach globally in the next 4-5 months sectorally as well as country-wise through Indian missions abroad with special focus on trade, technology, tourism and investment.

India’s total exports growth decelerated to 13.4 per cent in 2022-23 annually from 36 per cent expansion in the previous financial year as global demand was affected following outbreak of Russia-Ukraine war in February 2022 and other geopolitical reasons. He highlighted that ‘we will achieve exports of $1 trillion each in goods and services by 2030’. The Foreign Trade Policy 2023 outlines a host of measures and incentives to boost exports from India.

The CNX Nifty is currently trading at 17377.00, up by 17.25 points or 0.10% after trading in a range of 17325.50 and 17428.05. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were ONGC up by 3.87%, Maruti Suzuki up by 2.81%, Hero MotoCorp up by 2.67%, Eicher Motors up by 2.53% and Bajaj Auto up by 2.25%. On the flip side, BPCL down by 4.04%, Adani Enterprises down by 1.41%, Hindustan Unilever down by 1.35%, Tech Mahindra down by 1.06% and Nestle down by 0.78% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 165.31 points or 0.59% to 28,206.79, Straits Times rose 20.85 points or 0.64% to 3,279.75, Shanghai Composite strengthened 18.2 points or 0.55% to 3,291.06 and Jakarta Composite was up by 9.47 points or 0.14% to 6,814.75. On the other hand, KOSPI dropped 2.68 points or 0.11% to 2,474.18 and Hang Seng was down by 120.57 points or 0.59% to 20,279.54.