Benchmarks extend gains to trade at intraday high

Indian equity benchmarks have extended their morning gains to trade near intraday high levels, with frontline gauges inching towards their crucial 7,750 (Nifty) and 25,300 (Sensex) mark. Traders opted to buy beaten down but fundamental stocks after three days of continues drubbing. Recovery in Indian rupee too aided sentiments. The rupee appreciated by 5 paise to 66.50 against the US currency in noon deals at the Interbank Foreign Exchange on fresh selling of the American currency by exporters and banks. Asian markets were exhibiting mixed trend at this point of time as mixed economic data did nothing to assuage concerns about global growth, keeping sovereign bonds well supported as a hedge against deflation risks.

Back home, aviation stocks like Jet Airways and Indigo edged higher on some reports that the civil aviation policy is likely to come before the Cabinet next week and it may retain the proposal of auctioning unused bilateral rights. However, public sector oil marketing companies were trading lower as crude prices edged higher in the global commodities markets, after a huge wildfire in Canada disrupted its oil sands production and fighting between rival eastern and western political factions in Libya prevented a cargo belonging to trading giant Glencore from loading.

The BSE Sensex is currently trading at 25281.13, up by 179.40 points or 0.71% after trading in a range of 25162.94 and 25295.55. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.40%, while Small cap index up by 0.45%.

The top gaining sectoral indices on the BSE were Realty up by 2.15%, Capital Goods up by 0.98%, Finance up by 0.91%, FMCG up by 0.87% and Power up by 0.86%, while Telecom down by 1.61%, TECK down by 0.38%, Oil & Gas down by 0.21%, IT down by 0.07% and Energy down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 3.78%, BHEL up by 2.96%, Tata Motors up by 2.58%, Sun Pharma up by 1.71% and Lupin up by 1.57%. On the flip side, Adani Ports &Special down by 2.91%, Bharti Airtel down by 1.70%, TCS down by 0.34%, Mahindra & Mahindra down by 0.30% and Reliance Industries down by 0.14% were the top losers.

Meanwhile, the US Commerce Department would be slapping a preliminary duties on imports of welded stainless pressure pipe from India after finding the goods were being dumped in the US market at below market prices. The department said it found the products were being dumped at margins of up to 18.9 percent, and that it would tell US customs officials to collect a 16.9 percent cash deposit as the trade case moves forward.

The Commerce Department though would announce its final determination on or about September 17 but the preliminary decision came in response to a complaint brought last year by Bristol Metals, a subsidiary of US steel products maker Synalloy Corp; Outokumpu Stainless Pipe, a subsidiary of Finnish firm Outokumpu; and Felker Brothers Corp and Marcegaglia USA.

If Commerce Department makes an affirmative final determination, and the U.S. International Trade Commission (ITC) makes an affirmative final determination that imports of welded stainless pressure pipe from India materially injure, or threaten material injury to, the domestic industry, Commerce will issue a CVD order.

Earlier, in March the department issued a preliminary finding that imports of the pipe were also being unfairly subsidized and a final Commerce Department determination in that case is expected by July 18. As pere the preliminary findings, Commerce calculated a preliminary subsidy rate of 2.96 percent and 6.21 percent for mandatory respondents Steamline Industries Limited and Sunrise Stainless Private Limited, Sun Mark Stainless Pvt. Ltd., and Shah Foils Ltd. (collectively, Sunrise Group), respectively. All other producers/exporters in India have been assigned a preliminary subsidy rate of 4.55 percent. The petitioners for this investigation were Bristol Metals, LLC (TN); Felker Brothers Corporation (WI); Outokumpu Stainless Pipe, Inc. (FL); and Marcegaglia USA Inc. (PA).

The CNX Nifty is currently trading at 7747.65, up by 41.10 points or 0.53% after trading in a range of 7714.60 and 7751.60. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were HDFC up by 3.86%, BHEL up by 3.05%, Tata Motors up by 2.62%, Lupin up by 1.67% and Yes Bank up by 1.57%. On the flip side, Idea Cellular down by 4.76%, Adani Ports &Special down by 3.24%, Bharti Airtel down by 1.94%, BPCL down by 1.12% and Zee Entertainment down by 1.11% were the top losers.

Asian markets were trading mixed; Hang Seng increased 2.13 points or 0.01% to 20,527.96 and Shanghai Composite was up by 4.55 points or 0.15% to 2,995.83. On the flip side, Taiwan Weighted decreased 17.51 points or 0.21% to 8,167.96 and FTSE Bursa Malaysia KLCI was down by 9.12 points or 0.55% to 1,648.46.