Markets trade flat ahead of RBI policy review; Adani Ports up 3%

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Nifty started the day on a fresh record high of 9,264.95, surpassing its previous milestone of 9,245, hit on April 3, 2017 but later pared entire gains to trade in negative as investors stayed cautious ahead of the 2-day RBI policy meet which begins today. A surge in crude oil prices to one-month high and muted global cues also affected the sentiment.

Sensex also retreated over 50 points after reaching its 52-week high of 30,007.48, only 17 points shy of its all-time high 30,007.74.


At 11:30 am, the S&P BSE Sensex was trading at 29,920, up 10 points, while the broader Nifty50 was ruling at 9,245 up 7 points.


In the broader market, BSE Midcap and BSE Smallcap gained 0.1% and 0.3%, respectively.

"Directional moving indicators are strong, ensuring continuation of uptrend if consolidation unfolds initially. However, should 9,170 fails to hold after the initial burst or consolidation, it could lead to sharp falls, but they are less likely to sustain beyond 9,070/8,970," said Geojit Financial Services in a note.


Foreign investors pumped a little over Rs 49,000 crore in the Indian capital market in 2016-17, after pulling out a hefty sum in the previous financial year. On Monday, foreign portfolio investors (FPIs) bought shares worth a net Rs 534.45 crore, while Domestic institutional investors (DIIs) also bought shares worth a net Rs 33.29 crore, provisional data available with BSE showed.

Sectors and Stocks

Cipla, RIL, NTPC, Tata Steel were the top gainers while HDFC, Dr Reddy's, ITC and Asian Paints were the biggest laggards on BSE Sensex. 

Company  rallied 6% to Rs 487, also its fresh high on the BSE, after the company said the demand scenario in Q4 (January to March) quarter for the firm had improved and sales across its divisions had been good, pointing to a strong earnings period ahead of its Q4 results.

TVS Motor gained 2.42 % after the company reported a 10.24% increase in total sales at 2,56,341 units in March this year. The company had sold 2,32,517 units in the same month last year.

RBI policy meet begins


The first bimonthly Monetary Policy meet of the RBI for 2017-18 which begins today will end tomorrow when the statement will be released on April 6 at 2:30 pm.


According to experts, RBI is unlikely to raise rates at this policy meet. RBI Governor Urjit Patel in his last policy review on February 8 had kept the key interest rate on hold at 6.25%.

Rajya Sabha to take up GST today


GST laws are set to become a reality as the Rajya Sabha takes up the Bills today. The Lok Sabha earlier on March 29 passed four key GST Bills, rejecting amendments moved by the opposition. The Bills are related to Central GST, Integrated GST, UT GST and GST Compensation.


The 'revolutionary' bill, which is said to be a culmination of all indirect taxes under one bracket, is being scheduled for rollout on July 1, 2017.


Shankara Building lists

Shankara Building Products, which recently concluded its Rs 350-crore initial public offer, listed its shares on the stock exchanges on April 5. The stock was trading nearly 25% higher at Rs 572 in the early deals.


The IPO, from March 22-24, was subscribed 41.60 times. The price band was fixed at Rs 440-460 per share.


The portion set aside for qualified institutional buyers (QIBs) was subscribed 51.62 times while that for the non- institutional investor segment was 90.68 times. The retail investor category witnessed a subscription of 15.35 times.


Revamped H1-B visa policy


The $115-billion software services sector in the country will possibly have to deal with fresh restrictions after the Donald Trump government announced measures to step up scrutiny of H1B visa holders in the US. This new policy will impact entry-level IT workers the hardest.


The announcement by the US Citizenship and Immigration Services (USCIS) comes on a day on which the federal agency started accepting applications for H-1B visas for the financial year beginning October 1, 2017.


Global Markets


Asian markets across Japan, Korea and Australia were trading mixed in early morning trade as investors move to the sidelines before a potentially tense meeting between Donald Trump and Chinese President Xi Jinping later this week.


US crude CLc1 rose to $51.30 per barrel on Tuesday, its highest since March 8 before settling at $51.14 per barrel in opening trades on Wednesday. That pushed energy and related shares up on Wall Street and helped reverse losses on the broader market.  In overnight trade, the Dow Jones Industrial Average index rose 0.19% while the S&P500 advanced a meager 0.06% and the Nasdaq Composite index gained 0.07%.


MSCI's broadest index of Asia-Pacific shares outside Japan was flat with early Asian markets such as Australia and South Korea slightly higher. Hang Seng, Nikkei and Shanghai were trading higher by 0.22%, 0.25% and 1% respectively, in the morning trade.

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