IGI Logo

Extending the winning momentum for second successive session, Indian equity benchmarks surged more than 2 percent in Tuesday's session on the back of a broad-based buying frenzy, due to positive cues from the global markets. Nifty ended just shy of its crucial 14,850 mark, while Sensex regained its psychological level of 50,100. After opening in the green, benchmark indices maintained their lead for the whole day. Sentiments got a boost with IMF’s statement that India's economy is on the path of gradual recovery, real GDP growth, return to positive territory in fourth quarter of 2020. And that's for the first time actually since the start of the pandemic and it's supported by a pickup in gross, fixed capital formation. Some optimism also came as US Trade Representative Katherine Tai, after meeting Union Minister of Commerce and Industry Piyush Goyal, said India and the United States will look at ways to expand its trade relations and cooperate on pending bilateral issues.

Furthermore, investors’ morale also remained upbeat as Chief Economic Adviser (CEA) K. V. Subramanian asserted that the disinvestment target of Rs 1.75 lakh crore for 2021-22 was ‘eminently achievable’. He said the proposed initial public offering (IPO) by LIC itself could garner Rs 1 lakh crore for the government. He also said targeting of retail inflation by the Reserve Bank of India (RBI) has helped bring down the volatility and level of inflation. Market participants also got some encouragement as Union Minister Piyush Goyal has said that India will be able to overtake China in its engagement with Bangladesh. He said India has been working relentlessly to build strong relations with all its neighbouring countries. He also said India's ability to add more value to the products and services has helped it expand trade ties with countries like Bangladesh. Meanwhile, the government is unlikely to take zero-coupon bond route to further recapitalise public sector banks after the Reserve Bank expressed some concerns in this regard. The government would resort back to recapitalisation bonds bearing a coupon rate for capital infusion in these banks.

On the global front, European markets were trading higher with a survey showing that French consumer confidence unexpectedly improved in March to its highest level in three months. Fears of a broader fallout from the U.S. hedge fund default also eased, helping lift banking stocks. Asian markets settled mostly higher on Tuesday as investors await U.S. President Joe Biden's infrastructure plan to be announced on Wednesday which is seen around $3 trillion-$4 trillion. Back home, on the sectoral front, banking stocks were in focus with report that the government is unlikely to take zero-coupon bond route to further recapitalise public sector banks after the Reserve Bank expressed some concerns in this regard. Coal industry stocks too were in watch with a private report that India's coal import dropped 13.6 per cent to 196.13 million tonne (MT) in the April-February period of the ongoing fiscal year. The country had imported 227.23 MT of coal in the year-ago period.

Finally, the BSE Sensex rose 1128.08 points or 2.30% to 50,136.58, while the CNX Nifty was up by 337.80 points or 2.33% to 14,845.10. 

The BSE Sensex touched high and low of 50,268.45 and 49,331.68, respectively. There were 27 stocks advancing against 3 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.98%, while Small cap index was up by 1.30%.

The top gaining sectoral indices on the BSE were IT up by 3.51%, TECK up by 3.09%, Metal up by 2.54%, Healthcare up by 2.35% and FMCG up by 2.24%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were HDFC Bank up by 4.11%, HCL Technologies up by 3.91%, Infosys up by 3.69%, NTPC up by 3.60% and Hindustan Unilever up by 3.59%. On the flip side, Mahindra & Mahindra down by 0.74%, Axis Bank down by 0.41% and Bharti Airtel down by 0.17% were the top losers.

Meanwhile, Union Minister Piyush Goyal has said that India's goods exports will stand at $290 billion for the financial year ending March (FY21), 7 percent short of the shipments in the previous fiscal. However, he said this was great considering the country has bounced back so quickly in a challenging year. India's goods exports stood at $313 billion in FY20.

The minister stated that it will be a record year in terms of FDI inflows for India, despite the pandemic and the fact that all international statistics suggest that foreign investments across the world are going to significantly fall in the current months. Observing that India was amongst the rare countries which saw FDI growth in 2020, Goyal said he has absolutely no doubt it will be a record FDI.

Goyal also expressed confidence that going forward, India will be able to overtake China in its engagement with Bangladesh. He said India has been working relentlessly to build strong relations with all its neighbouring countries. He also said India's ability to add more value to the products and services has helped it expand trade ties with countries like Bangladesh. However, he added that India does not hold a grudge against any country for its engagement with anybody else and focuses only on what it can do with that country better.

The CNX Nifty traded in a range of 14,876.30 and 14,617.60. There were 46 stocks advancing against 4 stock declining on the index.  

The top gainers on Nifty were UPL up by 7.59%, JSW Steel up by 4.98%, Shree Cement up by 4.92%, Tata Steel up by 4.26% and Wipro up by 3.91%. On the flip side, Hindalco down by 0.32%, Axis Bank down by 0.20%, Mahindra & Mahindra down by 0.14% and Bharti Airtel down by 0.03% were the top losers.

European markets were trading higher;  UK’s FTSE 100 increased 26.30 points or 0.39% to 6,762.47, France’s CAC rose 38.82 points or 0.65% to 6,054.33 and Germany’s DAX was up by 101.02 points or 0.68% to 14,918.74.

Asian markets settled mostly higher on Tuesday kindled by the optimistic view over the global economic recovery, prospects of better Sino-US relations and vaccine rollout. Investors' sentiment also improved ahead to the release of US President Joe Biden's infrastructure plans on Wednesday, which is approximately $3 -$4 Trillion. China's Shanghai soared on better than expected corporate earnings with major gains in energy and health care sectors. Stronger US dollars also appreciated more investments to the equity market. `Globally, banking and financial sector stocks were weighed down with the concerns over larger hedge fund defaulting on margin call.

Above views are of the author and not of the website kindly read disclaimer