Benchmarks erase all gains to trade in red

Sensex and Nifty wiped off their early gains and were trading in red in late afternoon trade due to uncertainty over a tight US presidential election. Investors remained concerned with GST Council meet starting today as both the Centre and states seeming to harden their positions with respect to the issues they disagree on.  There is a raging debate on the Centre’s proposal for having multiple rates for GST. However, losses remained capped with the report that India’s Services sector activity gathered pace in October, driven by sharper increase in new business orders amid strong demand and improved market conditions. The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector companies on a monthly basis, stood at 54.5 in October as against 52.0 in September. On the sectoral front domestic steel stocks were trading mixed on Thursday after the government imposed a provisional anti-dumping duty on import of hot-rolled steel products from China for six months.

On the global front, European stocks were trading slightly higher on Thursday, with banks in focus, after Credit Suisse Group has reported a surprise third-quarter profit and ING Groep delivered better-than-expected underlying net result for the third quarter. Societe Generale's third-quarter profit also beat estimates.

The BSE Sensex is currently trading at 27514.58, down by 12.64 points or 0.05% after trading in a range of 27438.57 and 27600.74. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.62%, while Small cap index was down by 0.40%.

The gaining sectoral indices on the BSE were Auto up by 0.47%, FMCG up by 0.35% and Capital Goods up by 0.17%, while PSU down by 0.88%, Oil & Gas down by 0.77%, IT down by 0.55%, Realty down by 0.40% and Power down by 0.32% were the losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 1.88%, ITC up by 1.22%, Bajaj Auto up by 0.81%, Reliance Industries up by 0.77% and Coal India up by 0.70%. On the flip side, Tata Steel down by 2.89%, ONGC down by 2.67%, Adani Ports &Special down by 2.32%, Asian Paints down by 1.85% and SBI down by 1.39% were the top losers.

Meanwhile, in order to protect domestic aluminium sector, the Indian government is mulling to provide duty protection for the aluminium sector which is facing dumping of cheap aluminium products from countries like China for over a year now. The Directorate General of Anti-Dumping and Allied Duties (DGAD) in its recent notification said that it has found prima facie evidence of dumping of aluminium from China.

As per the notification, “the authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry. To determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry”.  The period of investigation is from April 2014 to March 2015.

India's annual aluminium consumption currently stood at 3 million tonnes and production capacity is 4 million tonne. Nearly half the consumption is met by imports, mainly from China. Aluminium imports had rose 159 per cent in 2015 as compared to 2011 levels.

The CNX Nifty is currently trading at 8508.85, down by 5.15 points or 0.06% after trading in a range of 8486.90 and 8537.65. There were 27 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.25%, Bharti Infratel up by 3.78%, Hero MotoCorp up by 1.74%, ACC up by 1.54% and ITC up by 1.14%. On the flip side, Tata Steel down by 3.06%, Grasim Industries down by 2.77%, ONGC down by 2.61%, Adani Ports &Special down by 2.30% and Asian Paints down by 1.90% were the top losers.

Asian market were trading mostly in red; Hang Seng decreased 126.99 points or 0.56% to 22,683.51, Taiwan Weighted decreased 71.77 points or 0.79% to 9,067.27, Jakarta Composite decreased 53.58 points or 0.99% to 5,351.88 and FTSE Bursa Malaysia KLCI decreased 8.09 points or 0.49% to 1,651.51.

On the other hand, KOSPI Index increased 4.86 points or 0.25% to 1,983.80 and Shanghai Composite increased 26.2 points or 0.84% to 3,128.94.

European markets were trading mostly in green; France’s CAC increased 4.54 points or 0.1% to 4,419.21 and UK’s FTSE 100 was up by 6.19 points or 0.09% to 6,851.61. On the flip side, Germany’s DAX decreased 4.36 points or 0.04% to 10,366.57.