Bourses trade near neutral lines with positive bias in late afternoon session

In a volatile trading session, Indian markets traded near neutral lines with positive bias in late afternoon session. As for broader indices, Small cap index traded with hefty gains, while BSE Mid cap index traded with limited gains. Buying in banking counters lifted mood of the markets. Investors awaited the RBI's interest-rate decision due later in the holiday-shortened week. Investors pinned hopes for a pause in rate hikes by the Federal Reserve later this year. Meanwhile, India's manufacturing sector activity improved in the month of March, as growth of factory orders and production quickened to the strongest in three months. With pressure on supply chains subsiding and raw material availability improving, input cost inflation retreated to its second-lowest mark in two-and-a-half years.

On the global front, Asian markets were trading mostly in green despite surge in oil prices brought inflation and rate hike worries back into focus. European markets were trading higher with oil companies leading the way, benefiting from the surge in crude prices following the surprise cut in OPEC+ production.

The BSE Sensex is currently trading at 59034.43, up by 42.91 points or 0.07% after trading in a range of 58793.08 and 59204.82. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.12%, while Small cap index was up by 1.06%.

The top gaining sectoral indices on the BSE were Telecom up by 1.68%, Auto up by 1.02%, Consumer Durables up by 0.65%, Bankex up by 0.51% and Realty was up by 0.50%, while Oil & Gas down by 0.67%, IT down by 0.52%, FMCG down by 0.46%, Power down by 0.34% and TECK was down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.49%, Bharti Airtel up by 1.39%, NTPC up by 1.11%, Indusind Bank up by 0.92% and Titan Company up by 0.91%. On the flip side, Infosys down by 1.36%, Hindustan Unilever down by 0.98%, ITC down by 0.95%, TCS down by 0.49% and Power Grid down by 0.49% were the top losers.

Meanwhile, India's manufacturing sector activity improved in the month of March, as growth of factory orders and production quickened to the strongest in three months. With pressure on supply chains subsiding and raw material availability improving, input cost inflation retreated to its second-lowest mark in two-and-a-half years.

According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 56.4 in March from 55.3 in February, signaling the strongest improvement in operating conditions in 2023 so far. However, the PMI average for the final fiscal quarter (55.7) came in below that recorded in the prior period (56.3 in Q3).

The report noted that ongoing improvements in total sales volumes underpinned another increase in production. Output rose at the quickest pace since last December and one that outpaced its long-run average. Demand resilience also encouraged firms to rebuild their input inventories. Stocks of purchases rose at a sharp rate that was one of the strongest seen in over 18 years of data collection.

As per the report, Indian manufacturers expect improved customer relations, new product releases and advertising to support sales and subsequently production over the course of the coming 12 months. However, the overall level of positive sentiment slipped to an eight-month low due to concerns surrounding competitiveness and general inflation.

The CNX Nifty is currently trading at 17372.10, up by 12.35 points or 0.07% after trading in a range of 17312.75 and 17428.05. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 3.23%, Coal India up by 2.62%, Maruti Suzuki up by 2.45%, Bajaj Auto up by 1.97% and ONGC up by 1.62%. On the flip side, BPCL down by 4.08%, Apollo Hospital down by 2.09%, Adani Enterprises down by 1.74%, Infosys down by 1.36% and Adani Ports down by 1.14% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 146.67 points or 0.52% to 28,188.15, Shanghai Composite strengthened 23.54 points or 0.71% to 3,296.40, Straits Times rose 20.49 points or 0.62% to 3,279.39, Jakarta Composite gained 15.67 points or 0.23% to 6,820.95 and Hang Seng was up by 9.07 points or 0.04% to 20,409.18. On the flip side, KOSPI was down by 4.52 points or 0.18% to 2,472.34.

European markets were trading higher, UK’s FTSE 100 increased 53.84 points or 0.7% to 7,685.58, France’s CAC rose 29.01 points or 0.39% to 7,351.40 and Germany’s DAX was up by 12.11 points or 0.08% to 15,640.95.