Stellar March comes to an end with Nifty gaining 7.7%

Bulls made a stunning comeback in March as Nifty50 rallied 7.7 percent snapping three consecutive months of losing streak. The index rallied 831 points in March to record its highest level since August 2018.

The final tally on D-Street – the S&P BSE Sensex rallied 127 points to close at 38,672 while the Nifty50 rose 53 points to end at 11,623 on March 29. The Nifty50 closed at 11,680 on August 31, 2018.

Strong liquidity flows from foreign institutional investors, hopes of a stable government at the Center, rally in banking stocks and recovery in broader market contributed to the rise in Indian equities in March.

Foreign institutional investors were net buyers in Indian equity markets for over Rs 32,000 crores as of March 28 while domestic institutional investors were net sellers to the tune of nearly Rs 16,000 crore in the same period, provisional data showed.

The rollover data for April series suggests that bulls are here to stay and 12,000 level or at least record highs is not far off. Nifty recorded a life-high of 11,768 on August 28, 2018, and the index is just 145 points away or 1.2 percent from those levels.

In FY19, Sensex and Nifty50 post their biggest ever gains in absolute terms since FY10. Nifty rallied 1,510 points in FY19, the 2nd highest ever in a fiscal, CNBC-TV18 data showed.

S&P BSE Sensex gained 5,704 points in FY19, the 2nd highest ever in a fiscal. The Nifty bank posted its biggest ever gain in absolute terms in FY19, up 6,163 points.

FY20 looks promising for investors but volatility due to election outcome and fears of global economic slowdown could act as a headwind for Indian markets.

“The near term uncertainty will be elections and global slowdown which one has to keep an eye on in FY20 but surely once we touch the second half of the year the focus will shift to corporate earnings,” Shailendra Kumar, Chief Investment Officer at Narnolia Financial Advisors told Moneycontrol.

“In terms of stocks, opportunities are available in corporate facing banks such as SBI, ICIC Bank; cement stocks are also looking good such as ACC; defense stocks are also looking attractive such as Bharat Electronics, etc.” he said.

Stocks in the news:

SBI Life Insurance Company shares fell 6 percent after BNP Paribas offloaded major shareholding in the company through the open market transaction.

Wabco India surged nearly 5 in spite of the parent company, WABCO Holdings, entering into a definitive merger agreement with ZF Friedrichshafen AG.

Indiabulls Integrated Services gained 5 percent after the redemption of preference shares and the appointment of a new Independent Director.

Federal Bank gained 3 percent after the private bank entered into a partnership with blockchain supported global remittance company Ripple Inc for cross-border remittance through its network.

Shares of Adani Enterprises surged more than 6 percent after Adani Defence Systems and Technologies, a wholly-owned subsidiary of the company, incorporated a new entity namely Adani Rave Gears India.

Global Updates:

European markets are trading higher on Friday as market participants are hopeful about a positive outcome from the US-China trade talks.

Asian markets are ended higher as trade negotiations continued between the US and China. Shanghai Composite rose 3.20 percent at 3,090.76 and Hang Seng was up 0.94 percent at 29,051.36.

Nikkei added 0.82 percent to end at 21,205.81 and Kospi rose 0.59 percent at 2,140.67.