Sensex registers small gains

The stock market registered small gains on positive global cues. The barometer index, the S&P BSE Sensex rose 107.98 points or 0.33% at 33,174.39, as per the provisional closing data. Metal and mining stocks gained on easing trade war fears between the US and China. Engineering and construction major L&T nudged higher after securing orders.

Market sentiment remained positive throughout the trading session on strong global cues amid reports of trade negotiations between the United States and China, which eased fears of a trade war and improved investors' risk appetite.

The Sensex had opened the session on a higher note on positive global stocks. The index trimmed gains in morning trade and hovered with small gains in mid-morning trade. It hit intraday low in early afternoon trade before recovering some intraday gains and trading range bound for the remainder of the session.

Among secondary indices, the S&P BSE Mid-Cap index provisionally advanced 1.06%. The S&P BSE Small-Cap index provisionally gained 1.36%. Both these indices outperformed the Sensex.

Overseas, European and Asian stocks advanced 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.

Closer home, the broader market depicted strength. On the BSE, 1,830 shares advanced and 825 shares declined. A total of 152 shares were unchanged.

The total turnover on BSE amounted to Rs 5400.23 crore, lower than the turnover of Rs 7010 crore registered during the previous trading session.

Metal and mining stocks gained on easing trade war fears between the US and China. Jindal Steel & Power (up 5.91%), Steel Authority of India (up 2.31%), Tata Steel (up 1.05%), Hindustan Copper (up 2.05%), Hindalco Industries (up 3.15%), JSW Steel (up 1.69%), Hindustan Zinc (up 0.58%) and Nalco (up 0.59%) gained. NMDC was down 0.7%.

Vedanta rose 1.5%. The company said that as a part of regular maintenance program, the company's smelting operations at Tuticorin have taken a maintenance shutdown for approximately 15 days. This activity was earlier scheduled in the month of April 2018. The Refining and Copper rod manufacturing operations will continue as usual, it added. The announcement was made during market hours today, 27 March 2018.

Engineering and construction major L&T was up 0.76% after the company said that the power transmission & distribution business of L&T Construction has bagged EPC orders worth Rs 4353 crore. The announcement was made during market hours today, 27 March 2018.

Separately, L&T during market hours today, 27 March 2018 announced that its heavy engineering arm has received orders worth Rs 747 crore in Haryana.

Lupin rose 1.12% after the company announced the launch of its Carbidopa Tablets 25mg having received an approval from the United States Food and Drug Administration (FDA) earlier. Lupin's Carbidopa Tablets, 25mg is the generic equivalent of Aton Pharma, Inc.'s Lodosyn Tablets, 25 mg. It is indicated for use with carbidopa-Ievodopa or with levodopa in the treatment of the symptoms of idiopathic Parkinson's disease (paralysis agitans), postencephalitic parkinsonism, and symptomatic parkinsonism, which may follow injury to the nervous system by carbon monoxide intoxication and/or manganese intoxication. The announcement was made during trading hours today, 27 March 2018.

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.

Meanwhile, the no-confidence motions moved by various opposition parties against the ruling National Democratic Alliance (NDA) have not been taken up even today as both the houses of Parliament were adjourned for the day. Ever since the second half of the Budget session commenced from March 5, the Parliament has been adjourned over vociferous protests from the opposition parties over a range of issues like PNB scam, Cauvery water board and Andhra Pradesh special category status.

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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