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Markets regain footing on global cues; post weekly rise

PTI     April 5, 2019

Mumbai, Apr 5 (PTI) Benchmark indices found firmer ground Friday after two sessions of decline as investors scooped up metal, finance and IT stocks amid positive cues from the global markets on optimism over the US-China trade talks. Robust foreign fund inflows and attractive valuations in the mid-cap and small-cap space added to the momentum, brokers said. The 30-share BSE Sensex climbed 177.51 points, or 0.49 per cent, to close at 38,862.23, while the broader NSE Nifty rose 67.95 points, or 0.59 per cent, to 11,665.95. During the week, the Sensex advanced 182.32 points, or 0.48 per cent, and the Nifty gained 42.05 points, or 0.36 per cent. Global equities spurted after US President Donald Trump said the United States and China are close to a trade agreement and something very "monumental" could be announced in the next four weeks. Tata Steel was the biggest gainer in the Sensex pack Friday, rising 3.36 per cent, followed by Vedanta, Bajaj Finance, TCS, IndusInd Bank, Infosys, ONGC, Kotak Bank, HDFC Bank, HDFC, M&M and ITC. On the other hand, SBI, PowerGrid, Hero MotoCorp, NTPC, Sun Pharma, HUL, HCL Tech, Yes Bank and Asian Paints were among the top losers, shedding up to 1.46 per cent. Market ended on a positive note with broad-based gains post two days of consolidation supported by favourable global cues on account of progress in US-China trade talks, said Vinod Nair, Head of Research, Geojit Financial Services. "Metals and IT index outperformed given improvement in global investor sentiment and dollar strength. Mid and small caps were outperforming on account of relative value buying opportunities compared to large caps. Going ahead, investors focus will be on Q4 results season starting next week," Nair added. The BSE metal, realty, teck, IT, basic materials, finance and oil and gas indices ended in the green, gaining up to 2.03 per cent. Broader indices too ended on a positive note, with the BSE Midcap and Smallcap rising up to 0.72 per cent. "FIIs have been aggressive buyers in the domestic market and have pumped in close to USD 5 billion so far, pushing the markets to a new high. "The upcoming Q4FY19 result season will be watched closely and a strong earnings growth will help the markets sustain its current valuations," said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas. Meanwhile, foreign institutional investors (FIIs) pulled out a net Rs 226.19 crore Thursday, while domestic institutional investors (DIIs) net bought equities to the tune of Rs 1,206.16 crore, provisional data available with stock exchanges showed. FIIs have been bullish on the Indian equity markets for the past few months. They poured in a net Rs 33,980.56 crore in March, while the figure for April so far stands at Rs 8,989.08 crore, according to depositories data. On the global front, trading sentiment got a leg up following positive comments from President Trump on the US-China trade negotiations. Top Chinese and US officials are meeting in Washington to reach an agreement after the world's two biggest economies slapped tariffs on goods worth more than USD 360 billion. In Asia, Korea's Kospi inched up 0.14 per cent, Japan's Nikkei climbed 0.38 per cent and Topix gained 0.35 per cent. China's Shanghai Composite Index spurted 0.94 per cent but Hong Kong's Hang Seng slipped 0.17 per cent In Europe, Frankfurt's DAX was down 0.16 per cent, while Paris CAC 40 rose 0.07 per cent, and London's FTSE moved up 0.07 per cent in early deals. The benchmark Brent crude futures slipped 0.30 per cent to USD 69.19 per barrel. The rupee depreciated 7 paise to 69.24 against the US dollar intra-day. PTI ANS ABM ABM

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