Sensex crosses 39,000 mark; breadth strong

Key indices extended early gains and hit fresh intraday high in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 335.03 points or 0.87% at 39,007.94. The Nifty 50 index was up 87.05 points or 0.75% at 11,710.95. Positive global cues boosted sentiment. The Sensex crossed 39,000 mark. The Nifty was trading above 11,700 mark.

Among secondary barometers, the BSE Mid-Cap index was up 0.91%. The BSE Small-Cap index was up 1.22%.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1497 shares rose and 471 shares fell. A total of 115 shares were unchanged.

Metal shares were in demand. Hindalco Industries (up 5.26%), Vedanta (up 4.49%), Hindustan Copper (up 3.78%), Hindustan Zinc (up 3.47%), Steel Authority of India (up 3.26%), National Aluminium Company (up 3.25%), NMDC (up 3.12%), Tata Steel (up 2.91%), Jindal Steel & Power (up 1.92%) and JSW Steel (up 1.66%), edged higher.

Most auto shares advanced. Tata Motors (up 5.91%), Mahindra & Mahindra (up 2.49%), Maruti Suzuki India (up 2.08%), TVS Motor Company (up 1.70%), Hero MotoCorp (up 1.20%), Ashok Leyland (up 0.66%) and Bajaj Auto (up 0.35%), edged higher. Escorts (down 0.01%) and Eicher Motors (down 0.6%), edged lower.

On the economic front, India's fiscal deficit touched 134.2% of the full-year revised budgeted estimate at the end of February 2019, data showed Friday. In absolute terms, the fiscal deficit for April-February 2018-19 was Rs 8.51 lakh crore as against the revised estimate (RE) of Rs 6.34 trillion for the entire year, according to Controller General of Accounts (CGA) data.

The data revealed that revenue receipts of the central government was Rs 12.65 lakh crore or 73.2% of the revised budgetary estimate (BE) at February end. In the same period last fiscal, the revenue collection was 78.2% of the estimates. The government's tax revenue stood at Rs 10.94 lakh crore and non-tax revenue was Rs 1.71 lakh crore. Total expenditure incurred by the government during April-February 2018-19 was Rs 21.88 lakh crore (89.08% of RE).

Further, India's current account deficit (CAD) at $16.9 billion (2.5% of GDP) in Q3 of 2018-19 increased from $13.7 billion (2.1% of GDP) in Q3 of 2017-18, but moderated from $19.1 billion (2.9% of GDP) in the preceding quarter. The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit at $49.5 billion as compared with $44.0 billion a year ago, the Reserve Bank of India said on Friday.

Overseas, Asian shares were trading higher amid signs of progress in US-China trade talks.

Manufacturing activity in China expanded unexpectedly in March at its fastest pace in eight months, a private survey showed. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) came in at 50.8 for March. A reading below 50 signals contraction, while a reading above that level indicates expansion.

US stocks rose on Friday, 29 March 2019, as optimism over progress on US-China trade talks appeared to overshadow concerns about a slowing economic expansion.

On the US-China trade front, high-level trade negotiations between the two economic powerhouses are set to resume in Washington this week following last week's talks in Beijing.

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