Metal and mining stocks shine on firm copper prices

Key benchmark indices held firm after hitting fresh intraday high in mid-afternoon trade. At 14:28 IST, the barometer index, the S&P BSE Sensex, was up 189.99 points or 0.58% at 33,158.67. The Nifty 50 index advanced 69.70 points or 0.69% at 10,183.40. The Sensex was trading above the psychological 33,000 mark after gyrating above and below that level in intraday trade. Metal and mining stocks rose on firm copper prices.

Trading for the first day of the week, month and financial year 2019 began on a buoyant note as domestic stocks edged higher in early trade on positive Asian stocks. A bout of volatility was seen in morning trade as the key benchmark indices regained strength soon after trimming early gains. Indices extended gains to hit fresh intraday highs in afternoon trade. Trading resumed after a long weekend. The stock market had remained shut on Thursday, 29 March 2018 for Mahavir Jayanti and also on Friday, 30 March 2018 on the eve of Good Friday.

Among secondary indices, the S&P BSE Mid-Cap index advanced 1.08%. The S&P BSE Small-Cap index surged 2.07%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than three gainers against every loser on BSE. 2,014 shares advanced and 544 shares fell. A total of 131 shares were unchanged.

Metal and mining stocks were in demand as copper prices rose in global commodity markets.

Steel Authority of India (Sail) (up 4.42%), Vedanta (up 1.51%), JSW Steel (up 2.46%), Tata Steel (up 1.22%), National Aluminium Company (up 0.75%), Hindustan Zinc (up 0.68%), Jindal Steel & Power (up 2.65%) and Hindustan Copper (up 2.46%) edged higher. Hindalco Industries (down 1.21%) and NMDC (down 0.72%) edged lower.

Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 1.14% at $3.0600 per pound on the COMEX.

Most FMCG stocks rose. Tata Global Beverages (up 6.02%), Britannia Industries (up 2.52%), Dabur India (up 2.87%), Godrej Consumer Products (up 1.23%), Hindustan Unilever (up 0.45%), Marico (up 0.43%), Nestle India (up 1.11%) and Bajaj Corp (up 0.59%) rose.

GlaxoSmithkline Consumer Healthcare (down 4.09%), Colgate-Palmolive (India) (down 0.16%), Procter & Gamble Hygiene and Health Care (down 0.8%) and Jyothy Laboratories (down 1.15%) fell.

Coal India dropped 2.43% after the company announced the provisional production and offtake figures of the company and its subsidiaries in March 2018. The company achieved 105% of the targeted coal production at 72.28 million tonnes in March 2018. Actual offtake was 95% of the targeted offtake at 55.19 million tonnes in March 2018. The announcement was made on Sunday, 1 April 2018.

In a separate announcement made on Sunday, 1 April 2018, Coal India said that the company is working out the modalities to raise coal sales bills on GCV (Kcal/kg) basis and the exact date of implementation would be intimated soon. Till then, the present mode of raising of coal sales bills would continue. This has the approval of the competent authority of the company.

Among other news on the domestic front, as per decision of the GST Council, e-Way Bill system became mandatory from 1 April 2018 for all inter-state movement of goods.

Overseas, European financial markets will remain closed today, 2 April 2018 in observance of Easter Monday. Asian shares edged lower amid fears that US President Donald Trump's tariff programs could set off a trade war. Stock markets in Australia, Hong Kong and New Zealand were closed for the Easter holiday.

A Bank of Japan survey showed the first softening of business sentiment among Japan's big manufacturers in two years, with the materials sector most directly affected by US trade tariffs showing the sharpest declines.

China's manufacturing activity expanded at its weakest pace in four months in March, a private survey showed today, 2 April 2018. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) dropped to 51 in March from 51.6 in February. The weaker reading follows official data released Saturday, 31 March 2018 showing a rebound to 51.5 from February's holiday-affected 50.3.

Meanwhile, China imposed tariffs on a range of US goods, to retaliate against the Trump administration's penalties on imports of Chinese steel and aluminum. The Chinese Finance Ministry said on Sunday, 1 April 2018 that the previously announced tariffs on the imports of American goods would take effect from today, 2 April 2018. Penalties range from 25% on American pork and eight other kinds of goods to 15% on fruit and 120 types of commodities, the ministry said.

US stocks rose on Thursday, 29 March 2018 with tech shares leading the way, as equity markets ended a tumultuous quarter on a high note. The US and European markets were closed on Friday, 30 March 2018 for the Good Friday holiday.

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