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EQUITY
Post Session: Quick Review
Apr-16-2019

Indian equity benchmarks sustained their uptrend for the fourth consecutive session to end Tuesday’s trade at fresh record closing high levels, on the back of the Meteorological Department stating that India is likely to receive average monsoon rains this year. The forecast raised expectations of higher farm income. Domestic stock markets started the session with healthy gains, tracking strength in Asian peers. Traders took encouragement with the government data showing that India's exports grew by 11% to $32.55 billion in March on account of higher growth in sectors including pharma, chemicals and engineering. Imports rose by 1.44% to $43.44 billion during the month. However, trade deficit narrows to $10.89 billion as compared to $13.51 billion in the same month last year. The market breadth remained optimistic with a report that the government’s war on Non-Performing Assets (NPAs) could give a boost of 60 basis points to India’s GDP in FY20. The measures taken by the Modi government including recovery of bad loans and bank recapitalisation will reduce costs for lenders.

Key indices maintained their strong gains in the last leg of trade, taking support from a private report stating that the Reserve Bank of India will cut its key policy rates by another 25 basis points, after Governor Shaktikanta Das' weekend speech focusing on ways to revive growth. Adding some solace, the government is targeting public procurement worth Rs 50,000 crore through the commerce ministry's online marketplace--Government e-Marketplace (GeM)--during the current financial year (2019-20). In FY19, GeM touched Rs 17,325 crore mark in terms of value of transactions as compared to Rs 5,885 crore in the previous financial year and Rs 422 crore in 2016-17.

On the global front, Asian markets ended mostly higher on Tuesday as the US and Japan kicked off their first round of trade talks in Washington aimed at creating a bilateral trade framework. European markets were trading in green, as investors awaited a fresh round of U.S. corporate earnings. Back home, textile industry stocks were buzzing with report that India's cotton crop production may fall 7.87% to 343 lakh bales (of 170 kg each) in the 2018-19 season, mainly due to drought in many cotton-growing regions.

The BSE Sensex ended at 39299.07, up by 393.23 points or 1.01% after trading in a range of 39038.81 and 39364.34. There were 27 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index rose 0.10%, while Small cap index was up by 0.39%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 1.75%, Consumer Durables up by 1.33%, Telecom up by 1.19%, Capital Goods up by 0.92% and Oil & Gas up by 0.90%, while Realty down by 1.01% and IT down by 0.01% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Indusind Bank up by 3.97%, ICICI Bank up by 3.70%, ONGC up by 2.75%, Maruti Suzuki up by 1.79% and Larsen & Toubro up by 1.78%. (Provisional)

On the flip side, Power Grid down by 0.56%, Infosys down by 0.45%, Tata Motors - DVR down by 0.18% and Tata Motors down by 0.15% were the top losers. (Provisional)

Meanwhile, easing concerns over farm and economic growth in the country, the India Meteorological Department (IMD) in Long Range Forecast for 2019 southwest monsoon rainfall stated that the country is likely to have 'near normal' monsoon this year with a well distributed rainfall which could be beneficial for the agriculture sector.

Secretary Ministry of Earth Sciences (MoES) M Rajeevan has said that the seasonal rainfall is likely to be 96 per cent of the Long Period Average (LPA) with a model error of plus or minus 5 per cent. He said weak El Nino conditions are likely to prevail during the monsoon season with reduced intensity. He added that there could some effect of the El Nino in June, but monsoon may pick up pace from July. IMD Director General K J Ramesh said overall, the country is expected to have well distributed rainfall scenario during the monsoon season which will be beneficial to farmers in the country during the ensuing kharif season. Several parts of the country are witnessing agricultural distress.

The LPA of the season rainfall over the country as a whole for the period 1951-2000 is 89 centimetres. Significantly, the IMD has introduced a category of 'near normal' for rainfall between 96-104 per cent of the LPA this year. In its forecast last year, the rainfall between 96-104 per cent of the LPA was classified as ‘normal’ category. Rainfall of 90 to 96 per cent of the LPA is below normal. 96 per cent rainfall borders on below normal and normal category.

The CNX Nifty ended at 11795.40, up by 105.05 points or 0.90% after trading in a range of 11731.55 and 11810.95. There were 39 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were ICICI Bank up by 3.92%, Indusind Bank up by 3.77%, Titan Co up by 3.03%, ONGC up by 2.78% and Adani Ports &SEZ up by 2.11%. (Provisional)

On the flip side, Wipro down by 2.21%, Cipla down by 1.25%, GAIL India down by 0.82%, JSW Steel down by 0.53% and Tata Motors down by 0.52% were the top losers. (Provisional)

European markets were trading in green; UK’s FTSE 100 increased 14.81 points or 0.2% to 7,451.68, France’s CAC rose 0.93 points or 0.02% to 5,509.66 and Germany’s DAX was up by 77.90 points or 0.65% to 12,098.18.

Asian markets ended mostly higher on Tuesday as the US and Japan kicked off their first round of trade talks in Washington aimed at creating a bilateral trade framework. Bank of Japan Governor Haruhiko Kuroda reportedly said that ‘some sort of protectionism’ around global trade is the biggest threat to global economic growth. Chinese shares ended higher after data showed housing prices in 70 major Chinese cities increased an average of 10.6 percent year-on-year in March, signaling an economic rebound. Further, Japanese shares settled higher as the yen held close to 2019 lows against the dollar and NTT Docomo Inc. announced its new mobile phone charge plans.

Asian Indices

Last Trade           

Change in Points

Change in %

Shanghai Composite

3,253.60
75.81
2.39

Hang Seng

30,129.87
319.15
1.07

Jakarta Composite

6,481.54
46.39
0.72

KLSE Composite

1,629.46

-1.87

-0.11

Nikkei 225

22,221.66
52.55
0.24

Straits Times

3,332.04
6.18
0.19

KOSPI Composite

2,248.63
5.75
0.26

Taiwan Weighted

10,927.85
52.25
0.48
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