Bourses enlarge gains in late afternoon session

Indian equity markets widened their gains in late afternoon session amid value buying. The broader indices traded mixed. Investors turned their focus towards monetary policy outcome. Traders continued to take support as India’s services sector activity rose to one of strongest rates since mid-2010 in March, as buoyant demand for Indian services created a cascade of positivity for the sector. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 61.2 in March from 60.6 in February. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also jumped to 61.8 in March as against 60.6 in February.

On the global front, Asian markets traded in green with China, Taiwan and Hong Kong markets closed for a public holiday. Underlying sentiment remained supported somewhat after Federal Reserve Chair Jerome Powell reaffirmed his view that U.S. rates will be cut this year, but not anytime soon. European markets were trading higher with investors awaiting an inflation print and minutes from the European Central Bank's latest meeting. 

The BSE Sensex is currently trading at 74322.87, up by 446.05 points or 0.60% after trading in a range of 73485.12 and 74501.73. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.05%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were IT up by 1.25%, TECK up by 0.77%, Consumer Discretionary up by 0.65%, Utilities up by 0.64% and Bankex was up by 0.57%, while Oil & Gas down by 1.55%, Energy down by 0.88%, PSU down by 0.81%, FMCG down by 0.18% and Basic Materials was down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 2.60%, Asian Paints up by 2.49%, Tech Mahindra up by 2.28%, TCS up by 1.67% and Maruti Suzuki up by 1.38%. On the flip side, Bharti Airtel down by 1.29%, SBI down by 1.25%, Power Grid down by 0.91%, JSW Steel down by 0.52% and ITC down by 0.24% were the top losers.

Meanwhile, India’s services sector activity rose to one of strongest rates since mid-2010 in March, as buoyant demand for Indian services created a cascade of positivity for the sector. March saw one of the strongest expansions in total sales and business activity in close to 14 years, helped by a series record upturn in new export orders.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 61.2 in March from 60.6 in February. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also jumped to 61.8 in March as against 60.6 in February. 

The report highlighted increased pressure on the capacity of service providers, which in turn supported the joint-fastest rise in employment since November 2022. Amid higher labour and material costs, there was a further increase in overall expenses at services firms. The rate of input price inflation was marked, faster than that seen in February and above its long-run average. The combination of rising cost pressures and demand strength encouraged companies to lift their selling prices in March. The rate of charge inflation climbed to its highest mark since July 2017.

Besides, services companies indicated that the substantial upturn in new business volumes added pressure on their capacities. Pending workloads rose for the twenty-seventh month running, and to the greatest extent since the start of 2023. Further, business sentiment remained strongly positive, but slipped to a four-month low. On the plus side, firms expect demand trends to remain favourable, with marketing efforts also seen as a growth opportunity. There were, however, some concerns surrounding competitive pressures.

The CNX Nifty is currently trading at 22555.70, up by 121.05 points or 0.54% after trading in a range of 22303.80 and 22619.00. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 2.68%, Asian Paints up by 2.39%, Tech Mahindra up by 2.31%, Eicher Motors up by 2.28% and TCS up by 1.82%. On the flip side, ONGC down by 2.20%, Shriram Finance down by 1.70%, BPCL down by 1.64%, Adani Ports down by 1.43% and Bharti Airtel down by 1.28% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 321.29 points or 0.81% to 39,773.14, Jakarta Composite gained 80.2 points or 1.11% to 7,247.04, KOSPI increased 35.03 points or 1.28% to 2,742.00 and Straits Times was up by 14.46 points or 0.45% to 3,237.12.

European markets were trading higher; UK’s FTSE 100 increased 32.23 points or 0.41% to 7,969.67, France’s CAC rose 19.74 points or 0.24% to 8,172.97 and Germany’s DAX was up by 15.99 points or 0.09% to 18,383.71.