Markets end marginally lower as investors eye Q3 GDP data

BSE Smallcap index outperformed the frontline indices to rise 0.6%, while the BSE Midcap was flat

Benchmark indices ended the day marginally lower, snapping a six-day winning streak in the previous session as investors stayed cautious ahead of key economic growth and fiscal deficit data due later in the day.
 
The Street will closely watch the gross domestic product (GDP) data to see if demand wilted following Prime Minister Narendra Modi's surprise demonetisation decision. A poll conducted by Reuters showed economic growth slowing to 6.4% annually in the October-December quarter. 

The S&P BSE Sensex settled the day at 28,743, down 70 points, while the broader Nifty50 ended at 8,880, down 17 points. 
 
In the broader market, the BSE Smallcap index outperformed the frontline indices to rise 0.6%, while the BSE Midcap was little changed. S&P BSE Smallcap index hit a fresh nine-year high on the BSE in intra-day trade, up 0.65% after a sharp rally in select Tata Group companies, logistics, auto ancillary, steel and banking stocks.

"GDP data release as well as Fed speeches kept traders on the back foot. Markets were also waiting with interest, Donald Trump’s address of joint session of Congress tonight, which might throw light on plans on tax reform and infrastructure spending. With nearly 7000 crore worth ipos about to hit markets, investors may be in wait mode, but with major initiatives being mooted to boost Make in India  programme, markets do not show signs of cracking,” said Anand James, Chief Market Strategist, Geojit Financial Services in a note.

 
Meanwhile, the Economic Affairs Secretary also announced today that the states have agreed to July 1, 2017 as the date for implementation of GST.

Sectors and Stocks
 
The BSE Bankex was trading flat after snapping six consecutive sessions of gains in the previous session.  Federal Bank climbed around 5%, while YES Bank was up over 2%.
 
Shares of Bharti Airtel Ltd rose as much as 4.9% at intra-day after the operator said it would scrap national roaming charges from April 1. The stock ended 3.5% higher.
 
Idea Cellular pared losses to end 0.1% higher after the stock declined as much as 4.8% after Providence Equity Partners sold its 3.3% stake in the company.
 
Hindustan Petroleum Corporation Ltd (HPCL) tanked over 5% to Rs 531 on the BSE on news reports the state-owned Oil and Natural Gas Corporation (ONGC) may acquire HPCL in an about Rs 44,000 crore deal as part of the government's plan to create an integrated oil giant. It ended 3.6% lower,
 
Reacting to the buzz, Bharat Petroleum Corporation Ltd (BPCL) also slipped nearly 3% to Rs 670 while ONGC was trading flat at Rs 193.10.
 
JSPL hit a fresh 52-week high of Rs 129.50 at intra-day, up over 1% after brokerage houses turned bullish on the stock, citing capacity addition and likely debt reduction in global companies due to fall in coking coal price.
 
Global Markets
 
Asian shares lost their grip on Tuesday but were still on track for a winning month, bolstered by gains on Wall Street as investors awaited a speech by US President Donald Trump for signals on tax reform and infrastructure spending.
 
European shares edged higher on Tuesday after encouraging earnings releases. The pan-European STOXX 600 index was up 0.1%, while Britain's FTSE was flat.
 
MSCI's broadest index of Asia-Pacific shares outside Japan erased earlier modest gains and edged down slightly by mid-afternoon. But it was still up more than 3% this month and more than 9% for the year so far.
 
On Monday, US stocks edged up, with the Dow Jones Industrial Average closing at a record high for a 12th straight session, after Trump said he would talk about plans for "big" infrastructure spending in his first major policy address to Congress today.
 
Australia's S&P/ASX 200 index erased gains and ended down 0.2%, while China's Shanghai Composite Index was up 0.1%.
 
Japan's Nikkei stock index pared its gains but still ended up 0.1%, up 0.4% for February and nearly flat for the year to date, as investors awaited Trump.

(With inputs from Reuters)