Markets pare losses to trade in green

Indian equity benchmarks trimmed losses to trade in green in late afternoon session amid positive global cues. Sentiments got some support with report that Indian economy attracted $4.68 billion foreign direct investment (FDI) in November 2016, up 60 per cent over the corresponding period last year of $2.93 billion. During April-November period of the current fiscal, FDI in the country grew to $32.49-billion against $24.81 billion in the same period previous year. However, upside remained capped as the Reserve Bank of India decided to hold the key repo rate at 6.25% for the second time in a row, changing its stance to 'neutral' from 'accommodative'. The central bank also cut the economic growth forecast to 6.9 per cent for the current fiscal from 7.1 per cent estimated earlier.

On the global front, European markets were trading in green as investors focused on earnings and took a cautious approach amid rising political uncertainty. Asian markets were trading in green although Japanese markets remained under pressure owing to the yen's overnight strength. Back home, in scrip specific development, Maharashtra Seamless traded higher after the company bagged prestigious ONGC order worth Rs 421 crore ($ 61 million) for supply of seamless casings to ONGC against stiff competition from domestic as well as foreign manufactures from China, Russia, Ukraine, Romania, Argentina and others.

The BSE Sensex is currently trading at 28331.19, up by 41.27 points or 0.15% after trading in a range of 28152.18 and 28469.48. There were 16 stocks advancing against 13 stocks declining on the index, while one stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.08%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were IT up by 1.47%, TECK up by 1.43%, Realty up by 1.13%, Power up by 0.64% and Consumer Durables up by 0.36%, while Metal down by 0.64%, Bankex down by 0.36%, PSU down by 0.17% and Capital Goods down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.25%, Power Grid up by 1.62%, Infosys up by 1.20%, Hero MotoCorp up by 1.15% and Mahindra & Mahindra up by 1.02%. On the flip side, Tata Steel down by 1.81%, Cipla down by 1.44%, SBI down by 0.74%, Larsen & Toubro down by 0.61% and Sun Pharma down by 0.57% were the top losers.

Meanwhile, continuing its protectionist approach to support the domestic steel industry hit by cheap imports, the government has extended the anti-dumping duty on certain cold-rolled flat steel products from four nations including China and South Korea, by two months. The duty will be the difference between the landed value of the steel products and $594 per tonne.

With an aim to restrict cheaper imports, government in August 2016 had issued a notification to impose an anti-dumping duty on import of cold-rolled flat products of alloy or non-alloy steel from China, South Korea, Japan and Ukraine, for six months which has been amended by the Central Board of Excise and Customs (CBEC) to extend the levy of duty by two months from the present six months. Safeguard measures cannot be imposed for a longer term until an investigation by the Directorate General of Anti-Dumping concludes (DGAD).

The anti-dumping duty was imposed on a recommendation of the DGAD, which come to the provisional conclusion that the subject goods have been exported to India from the subject countries below normal value (and) the domestic industry has suffered a material injury on account of subject imports from the subject countries. DGAD also felt that the injury has been caused by the dumped imports of the subject goods from the subject countries.

The CNX Nifty is currently trading at 8777.90, up by 8.85 points or 0.10% after trading in a range of 8724.10 and 8821.40. There were 26 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Bharti Infratel up by 3.77%, Tech Mahindra up by 2.30%, Aurobindo Pharma up by 1.89%, TCS up by 1.87% and Power Grid up by 1.72%. On the flip side, Hindalco down by 2.28%, Tata Steel down by 1.89%, Bank of Baroda down by 1.79%, Cipla down by 1.50% and Indusind Bank down by 1.22% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 0.8 points or 0.04% to 2,065.88, Jakarta Composite increased 6.18 points or 0.12% to 5,367.27, Shanghai Composite increased 16.2 points or 0.51% to 3,183.18, Hang Seng increased 40.01 points or 0.17% to 23,525.14 and Taiwan Weighted increased 46.93 points or 0.49% to 9,590.18. On the flip side, Nikkei 225 decreased 99.93 points or 0.53% to 18,907.67.

All European markets were trading in green; UK’s FTSE 100 increased 6.35 points or 0.09% to 7,195.17, France’s CAC increased 23.73 points or 0.5% to 4,790.33 and Germany’s DAX increased 56.34 points or 0.49% to 11,599.72.