Market snaps three-day losing streak

Key benchmark indices settled with decent gains despite a weak trend witnessed in most of the global markets. The barometer index, the S&P BSE Sensex, rose 211.86 points or 0.72% at 29,787.60, as per the provisional closing data. The Nifty 50 index gained 52.60 points or 0.57% at 9,234.05, as per the provisional closing data. Gains were led by index heavyweights ITC, ICICI Bank, Infosys and L&T. Key indices snapped three-day losing streak today, 11 April 2017.

Market steadily extended intraday gains as the day progressed after witnessing a positive opening despite lower Asian stocks.

The Sensex rose 228.77 points or 0.77% at the day's high of 29,804.51 in late trade. It fell 5.16 points or 0.01% at the day's low of 29,570.58 in early trade. The Nifty gained 61.25 points or 0.66% at the day's high of 9,242.70 in late trade, its highest level since 7 April 2017. It fell 8.60 points or 0.09% at the day's low of 9,172.85 in early trade, its lowest level since 31 March 2017.

The BSE Mid-Cap index provisionally rose 0.38%, underperforming the Sensex. The BSE Small-Cap index provisionally advanced 1.01%, outperforming the Sensex.

The breadth, indicating overall health of the market, was strong. On BSE, 1,719 shares rose and 1,154 shares fell. A total of 148 shares were unchanged.

IT major Infosys rose 1.55%. The company will release its Q4 results on Thursday, 13 April 2017.

Capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 1.2%), Thermax (up 0.37%), Havells India (up 1.99%), ABB India (up 3.05%), Bharat Electronics (up 2.32%), L&T (up 1.75%), and Siemens (up 0.48%) gained.

Suzlon Energy rose 1.55% after the company said it has won a repeat order of 50.40 megawatts (MW) wind power project in Karnataka from a leading independent power producer (IPP) company. The project will be completed by June 2017.

Suzlon will execute the entire project on a turnkey basis and will also provide operation and maintenance services. The announcement was made after market hours yesterday, 10 April 2017.

Index heavyweight and cigarette maker ITC gained 2.74%. The stock was the top gainer from the Sensex pack.

NTPC advanced 0.09% after the company said that Bangladesh India Friendship Power Company (BIFPCL), a 50:50 joint venture company between NTPC and Bangladesh Power Development Board (BPDB) has achieved financial closure on 10 April 2017 to set up 1320 megawatts (MW) (2 x 660 MW) coal based Maitree Super Thermal Power Project at Rampal in Bagerhat District of Khulna division, Bangladesh.

An agreement was signed with Indian Exim Bank to provide loan up to $1.6 billion for financing this project. The announcement was made during market hours today, 11 April 2017.

Overseas, European and Asian stocks declined as rising tensions in the Middle East and political uncertainty in Europe kept investors on edge, underpinning safe assets such as the yen, gold and treasuries.

The upcoming French presidential election and the heightened tensions in the Middle East following the US strikes on Syria have left investors nervous even as a raft of global data over recent months have pointed to a steadily improving global economy.

In France, polls for many weeks have been showing centrist Emmanuel Macron and far-right leader Marine Le Pen on track to top the first round of voting on 23 April and go through to a 7 May runoff.

Meanwhile, industrial production in the eurozone dropped unexpectedly in February from the month before, led by falling energy output, the European Union's statistics agency said. Output of the eurozone's factory, mines and utilities decreased by 0.3% from the month before, but rose by 1.2% from February last year, Eurostat said.

US stocks closed fractionally higher yesterday, 10 April 2017, amid geopolitical tensions while investors looked ahead to the start of earnings season.

Federal Reserve Chairwoman Janet Yellen indicated yesterday that the era of extremely stimulative monetary policy was coming to an end. In a public discussion at the University of Michigan, Yellen said the Fed was moving away from its efforts to revive a recession-scarred economy and focusing instead on maintaining the gains of the past few years.

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