Nifty will head higher, as long as, it stays above 7,760
We had mentioned in Tuesday’s closing report that Nifty, Sensex were in an uptrend and that as long as Nifty stayed above 7,670, the market would head higher. Favourable monsoon forecast sent India's benchmark equity indices soaring and the trends of the major indices in the course of Wednesday’s trading are given in the table below:
Key Indian stock market indices soared on Wednesday morning, cheered by the official forecast that rains this monsoon season will be bountiful, as also on account of a rise in factory output after three months of contraction and a notable fall in retail inflation. Investors were also bracing for a long weekend with trading holidays on Thursday and Friday.
Among the 30 Sensex stocks, the sole scrip that was in the red was GAIL India. This scrip was down at the NSE as well, along with Tata Consultancy Services. Significantly, each of the 19 sector-specific indices of the BSE was also ruling higher. The BSE market breadth was tilted in favour of the bulls -- with 1,566 advances and 1,120 declines.
The India Meteorological Department (IMD) said that after two straight years of drought, India is likely to be showered with above-average rains during the upcoming monsoon season, with a probability of more than 94% precipitation.
Then, after the closing bell, came the twin dose of positive news from the Central Statistics Office that India's factory output for February logged a growth of 2% after three straight months of decline, and annual retail inflation fell to 4.83% in March from 5.26% in February.
On Wednesday, most Asian-Pacific markets were also trading in the green, with sentiments buoyed by the rise in oil prices that had, in turn, helped US stocks to rise. European stocks also rose and closed mostly higher on Tuesday at the end of a choppy session, helped by gains in energy and mining stocks.
According to Reuters, China's exports in March 2016 returned to growth for the first time in nine months, adding to further signs of stabilisation in the world's second-largest economy that cheered regional investors. March exports rose a blistering 11.5% from a year earlier.
Australia's ASX 200, Japan's Nikkei, Taiwan's Taiex, Hong Kong's Hang Seng were all trading higher.
Hence, rising global crude oil prices and positive global markets have cheered investors' sentiments in Indian stock markets on Wednesday.
However, caution over the ongoing Q4 (fourth quarter) results season, which started from April 8, mildly dampened sentiments. Infosys is expected to be the first bluechip firm to come out with its results on April 15.
The Supreme Court will examine if the Reserve Bank of India and the central government could take shelter behind the confidentiality clause in the RBI Act and other statutes for holding back names of loan defaulters and the total quantum of money in default. If bank recoveries of bad loans improve, the Bank Nifty could improve further.
ICICI Securities expects good Q4FY15-16 results for media sector on the back of robust advertising growth for broadcasters and favourable newsprint prices for print players. It expects advertisement revenues to grow at 14% on a y-o-y basis and EBITDA (earnings before interest tax and depreciation) by 25% across their coverage universe.
Idea Cellular emerged as the biggest gainer of the mobile number portability (MNP) scheme in the last five years, Kotak Institutional Equities said here on Wednesday in a five-year scorecard. Idea Cellular shares closed at Rs114.45, up 0.88% on the BSE.
Consumer electronics and home appliances major Videocon on Wednesday launched two new smartphones to reach out to the emerging smartphone users who demand best Android experience at an affordable cost. Videocon Industries shares closed at Rs107.40, up 0.37% on the BSE.
Alternative investment in India had a breather with Uttar Pradesh jewellers opening their shops on Wednesday, after 43 days of nationwide strike against the excise fees levied.
India's economic growth is expected to rise from 7.5% in 2015-16 to 7.7% in the current fiscal on the back of strong private investment, more infrastructure spending, better investment climate and improved corporate balance sheets, propelling South Asia to becoming the fastest-growing region globally, the World Bank said on Tuesday.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: