Market hovers in range

Key benchmark indices were trading with small gains in afternoon trade. At 13:19 IST, the barometer index, the S&P BSE Sensex rose 88.85 points or 0.27% at 33,155.26. The Nifty 50 index advanced 38.70 points or 0.38% at 10,169.35. Market sentiment remained positive amid reports of trade negotiations between the United States and China, which eased fears of a trade war and improved investors' risk appetite.

Key indices opened the session on a higher note on positive global stocks. Indices trimmed gains in morning trade and hovered with small gains in mid-morning trade. Indices hit intraday lows in early afternoon trade. The key benchmarks turned range bound in afternoon trade.

Among secondary indices, the S&P BSE Mid-Cap index advanced 1.11%. The S&P BSE Small-Cap index gained 1.37%. Both these indices outperformed the Sensex.

The broader market depicted strength. On the BSE, 1,804 shares advanced and 669 shares declined. A total of 140 shares were unchanged.

Overseas, European stocks opened firmly higher, while Asian stocks edged higher after Wall Street rebounded in previous trading session amid a slight easing in trade tensions. US stocks closed sharply higher yesterday, 26 March 2018, bouncing back from strong losses in the previous session as trade tensions between the US and China appeared to ease.

Back home, most telecom shares rose. Reliance Communications (up 2.14%), MTNL (up 1.56%), Idea Cellular (up 0.81%) and Tata Teleservices (Maharashtra) (up 0.36%), edged higher. Bharti Airtel was down 2.53%

Telecom tower infrastructure provider Bharti Infratel was down 2.3%.

Most realty shares rose. Sobha (up 7.99%), Peninsula Land (up 2.99%), Parsvnath Developers (up 2.87%), Unitech (up 2.85%), Oberoi Realty (up 2.37%), Indiabulls Real Estate (up 1.44%), Housing Development and Infrastructure (HDIL) (up 1.15%), Mahindra Lifespace Developers (up 1.11%), Omaxe (up 0.92%), D B Realty (up 0.75%), Sunteck Realty (up 0.27%) and Anant Raj (up 0.10%), edged higher. Godrej Properties (down 0.14%), Prestige Estates Projects (down 0.27%), DLF (down 0.86%) and Phoenix Mills (down 1.14%), edged lower.

On the political front, voting for the Assembly elections in Karnataka will be held on 12 May 2018, and the results will be out on 15 May 2018. The term of the current 224-member legislative Assembly ends on 28 May 2018.

On the macro economic front, the Government of India (GoI), in consultation with Reserve Bank of India (RBI), deliberated over its borrowing programme for FY 2019 and finalised its borrowing calendar for the first half of FY 2019. GoI had budgeted for FY 2019 Gross G-Sec borrowing of Rs 6.05 lakh crore. The GoI intends to use larger inflows from small savings schemes to fund its fiscal deficit during the year. The GoI will borrow Rs 1 lakh crore from NSSF as against budgeted amount of Rs 75000 crore. After making careful assessment of its financial needs for the first half, the GoI's gross G-Sec borrowing will be only Rs 2.88 lakh crore in the first half of FY 2019. This makes up only 47.5% as against 60-65% share in this period in previous years.

The GoI also plans to issue more Floating Rate Bonds (FRBs) and introduce CPI linked bonds, both put together, to the extent of 10% of issuances during the year. The GoI will introduce two benchmarks during this half year - 2-year and 5-year - to meet the market demand. More issuance will be planned in short and long-term maturity bucket, reducing the issuance in medium term segments of 10-14 years to around 29%, as against more than 50% issuances in previous years. GoI's T Bill programme for the first quarter is to raise Rs 1.95 lakh crore. During this period, T Bills of Rs 1.53 lakh crore will expire. The gross borrowing per week under T-Bills will be Rs 15000 crore.

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