Markets continue to trade in fine fettle in early noon session

Indian equity markets continue to trade in fine fettle in early noon session on continuous buying activities by both funds and retail investors, also positive cues from other Asian markets driven by better-than-expected US jobs data. The US added 287,000 jobs last month, signaling that world economic growth was picking up pace. Besides, a favorable monsoon and hopes of the Good and Services Tax Bill being passed in the upcoming Parliament session also helped the market surge. Furthermore, appreciating rupee against dollar, too supports sentiments. Indian rupee appreciated 22 paise to 67.15 against the US dollar in early trade as exporters and banks stepped up selling of the American currency. Traders were getting some support with NITI Aayog Vice Chairman Arvind Panagariya’s statement that the government has put the economy on the path of reform to achieve a high growth trajectory though there are significant lags between policy decisions and outcomes which need to be addressed. He also said that today, the economy is far healthier compared to the last year of UPA II in all macroeconomic parameters. In scrip specific development, Cadila Healthcare was trading over 3 per cent higher after it received an Establishment Inspection Report (EIR) from the USFDA for its Moraiya manufacturing facility.

On the global front, Japanese stocks led a rally across Asia on Monday, following a strong lead from Wall Street on better-than-expected US jobs data that eased fears of an economic slowdown in the world's largest economy and hopes for expanded fiscal stimulus in Japan. The BSE Sensex is currently trading at 27579.39, up by 452.49 points or 1.67% after trading in a range of 27358.23 and 27612.86. All the 30 stocks were advancing on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.33%, while Small cap index added 0.95%.

The top gaining sectoral indices on the BSE were Auto up by 2.06%, Realty up by 1.87%, Bankex up by 1.84%, Metal up by 1.82% and Power up by 1.77%

The top gainers on the Sensex were Tata Motors up by 3.97%, ICICI Bank up by 3.31%, Adani Ports &Special up by 3.16%, Power Grid Corporation up by 2.94% and Maruti Suzuki up by 2.82%.

Meanwhile, to protect domestic manufacturers, the Revenue Department has imposed definitive anti-dumping duty of up to $168.76 per ton on import of a chemical used in textile industry, originating from five countries-China, Iran, Taiwan, Indonesia and Malaysia. The imports of the chemical from these five countries will attract anti-dumping duty in the range of $ 83.08 per ton to $ 168.76 per ton.

As per the notification of Central Board of Excise and Customs the import restrictive tax has been imposed for five years by the Revenue Department on recommendations of the Directorate General of Anti-Dumping and Allied Duties. The DGAD, after an investigation, had found that the chemical 'Purified Terephthalic Acid' was being exported to India from the five countries below its normal value. Thus the chemical was being dumped into India. PTA -- a white, free flowing crystalline powder is the primary raw material for the manufacture of polyester chips which in turn is used in a number of applications in textiles, packaging, furnishings, consumer goods, resins and coatings.

MCC PTA India Corp and Reliance Industries had filed the application seeking levy of anti-dumping duty on PTA imports from these five countries. Indian Oil Corporation, another producer of PTA, had supported the petition. Based on the recommendations of the designated authority in its final findings, the revenue department has imposed anti-dumping duty in range from $83.08 per ton to $168.76 per ton depending on the producer and country of export.

Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime. Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

The CNX Nifty is currently trading at 8449.55, up by 126.35 points or 1.52% after trading in a range of 8407.05 and 8462.15. There were 49 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.79%, Power Grid Corpn. up by 3.34%, Adani Ports &Special up by 3.31%, Tata Motors - DVR up by 3.24% and ICICI Bank up by 3.16%. On the flip side, HCL Tech. down by 0.28% and Zee Entertainment down by 0.26% were the top losers.

All the Asian markets were trading in green, FTSE Bursa Malaysia KLCI increased 8.33 points or 0.51% to 1,652.87, KOSPI Index increased 26.17 points or 1.33% to 1,989.27, Shanghai Composite increased 31.18 points or 1.04% to 3,019.28, Jakarta Composite increased 75.81 points or 1.52% to 5,047.39, Taiwan Weighted increased 145.56 points or 1.68% to 8,786.47, Hang Seng increased 308.04 points or 1.5% to 20,872.21 and Nikkei 225 increased 693.24 points or 4.59% to 15,800.22.