Indian Equities settled on buoyant note - Microsec

Indian equities settled on a buoyant note with Sensex regaining 19,000 mark on Thursday after the commerce minister announced measures to boost exports and March trade deficit fell to USD 10.3 billion. Consumer durables, Capital goods, banking and realty stocks led the rally.

On domestic front, India's Inflation declined to a 40-month low level of 5.96% YoY in March 2013 against 6.84% YoY in the previous month. The deceleration in Inflation can mainly be attributed to softening of Primary Article (particularly food) Inflation.

India's Exports grew for a 3rd consecutive month in March 2013 by 6.97% to $30.85 billion against $26.26 billion in February 2013. Imports during March declined by 2.87% to $41.16 billion against $41.8 billion last month, leaving a Trade Deficit of $10.32 billion in March against $14.92 billion in February. However, cumulatively, India's Exports during FY2012-13 declined 1.76% to $300.57 billion against $305.96 billion during FY2011-12. The government had fixed an Export target of $360 billion for FY2012-13 which had been missed by a wide margin. India's Imports during FY2012-13 increased marginally by 0.44% to $491.49 billion against $489.32 billion during FY2011-12. The declining Exports have also pushed up the Trade Deficit during the fiscal to $190.92 billion from $183.36 billion in the previous financial year.

On global front, International Monetary Fund (IMF) trimmed its global growth forecast to 3.3% this year, less than the 3.5% forecast in January, after 3.2 % growth in 2012. IMF sees the 17-country euro area shrinking 0.3%, compared with a 0.2% retreat in January, with France joining Spain and Italy in contracting. IMF also pared down India's growth projection to 5.7% for 2013 from its earlier projection of 5.9%.

The U.S. Initial Jobless Claims increased by 4,000 to 352,000 in the week ended April 13, 2013. That's the highest level in two months.

Source : Equity Bulls

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