Post Session: Quick Review

Bulls which woke up in last leg of trade mainly helped the benchmarks to end near intraday high levels on Tuesday, as investors took to hefty across the board buying. After making a cautious start, markets entered into negative terrain as traders turned cautious with ICRA’s report stating that Indian gross value added (GVA) at basic prices to ease to 6.2 percent in Q3FY17 from 6.9 percent in Q3 FY16 and Gross Domestic Product (GDP) growth likely to decline to 6.5 percent from 7.2 percent a year ago. It added that the slippages will be driven by the slowdown in growth of the industry and services, offsetting the healthy agricultural expansion during the period. Moreover, a private report indicated India’s growth momentum witnessed recovery in January but it is not broad-based and overall economic activity remains below pre-demonetisation levels. The slowdown that started in the October-December quarter of 2016, post demonetisation is spilling over into the first quarter of 2017 (January-March).

However, markets took U-turn and returned into the green terrain as traders opted to buy beaten-down but fundamentally strong stocks. Traders took some encouragement with report that yearly SBI Composite Index (year-on-year) for February 2017 improving to 49.5 compared to last month’s index of 47.0, indicating some improvement in sentiments. The monthly Index though declined marginally to 49.2 in February 2017 from 50.9 in Jan 2017 which means IIP growth may continue to contract in January and February 2017.

Global cues too remained supportive with European markets making mostly positive start ahead of the release of key eurozone manufacturing and service sector surveys and several speeches from US central bank officials later in the day. Asian markets ended mixed on Tuesday in the absence of cues from US stock markets, which were closed overnight for a holiday.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. On the sectoral front, steel stocks remained on the buyers’ radar, as the government has extended anti-dumping duty on import of certain steel products from China for five years with an aim to protect domestic players from the cheap shipments. The levy has been imposed in the range of $ 961.33 - 1,610.67.

Stocks related to public sector banking counter too were trading higher, as heads of top ten state-run banks have met finance minister Arun Jaitley to raise concerns over aggressive investigation into non-performing loans which they said has impacted business. However, telecom stocks declined as Mukesh Ambani announces 100 million subscribers for Reliance Jio. He said Jio will start offering tariff plans from April 1 including free domestic calling to all networks.

The NSE’s 50-share broadly followed index Nifty gained around thirty points to end above the psychological 8,900 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by over hundred points to finish above its psychological 28,700 mark. Broader markets too traded in-line with benchmarks and ended the session in green terrain with a gain of around half a percent.

The market breadth remained in favor of advances, as there were 1,558 shares on the gaining side against 1,264 shares on the losing side while 185 shares remain unchanged. (Provisional)

The BSE Sensex is currently trading at 28761.59, up by 100.01 points or 0.35% after trading in a range of 28597.33 and 28801.00. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices were trading in green; the BSE Mid cap index was up by 0.52%, while Small cap index up by 0.46%. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.44%, Bankex up by 0.97%, Energy up by 0.88%, Oil & Gas up by 0.82% and PSU up by 0.67%, while Telecom down by 2.35%, TECK down by 0.51% and IT down by 0.17%, were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Axis Bank up by 4.99%, Asian Paints up by 1.61%, Reliance Industries up by 1.36%, Hindustan Unilever up by 1.17% and Adani Ports was up by 1.13%. On the flip side, Bharti Airtel down by 4.02%, TCS down by 1.68%, ITC down by 0.94%, Sun Pharma down by 0.93% and Maruti Suzuki was down by 0.52% were the top losers. (Provisional)

Meanwhile, extending its safeguard measures for the domestic players and retaining the protectionist barriers, India has extended anti-dumping duty on some steel products from China by five years. The levy has been imposed in the range of $961.33 to $1,610.67.Earlier, the government had imposed a provisional anti-dumping duty on the import of seamless tubes, pipes and hollow profiles of iron, alloy or non-alloy steel, whether hot-finished or cold-drawn or cold-rolled of an external diameter not exceeding 355.6 mm, effective May 17 last year.

The provisional levy was imposed on the recommendation of the Directorate General of Anti-Dumping And Allied Duties (DGAD). The DGAD in its final findings had made a case for definitive anti-dumping duty on the steel products. Acting on the recommendations, the Central Board of Excise and Customs (CBEC) in the revenue department has now imposed a definitive anti-dumping duty. As per the latest announcement, the anti-dumping duty shall be effective for a period of five years from the date of the imposition of the provisional anti-dumping duty.

Steelmakers such as JSW Steel, Tata Steel, and Steel Authority of India have lobbied for more measures to protect them from cheaper imports from China, Japan and South Korea. Indian steel companies remain exposed to imports from other Asian countries. The purpose of anti-dumping duties, in general, is to eliminate injury caused to the domestic industry by the unfair trade practices of dumping.

The CNX Nifty is currently trading at 8907.85, up by 28.65 points or 0.32% after trading in a range of 8860.95 and 8920.80. There were 34 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Axis Bank up by 4.84%, Aurobindo Pharma up by 2.49%, Asian Paints up by 1.61%, Tech Mahindra up by 1.59% and Yes Bank was up by 1.43%. On the flip side, Bharti Infratel down by 4.26%, Bharti Airtel down by 3.33%, TCS down by 1.47%, Tata Power down by 1.29% and ITC was down by 1.09% were the top losers. (Provisional)

European markets were trading mostly in green; France’s CAC increased 4.51 points or 0.09% to 4,869.50 and Germany’s DAX was up by 48.72 points or 0.41% to 11,876.34. On the flip side, UK’s FTSE 100 was down by 20.01 points or 0.27% to 7,279.85.

Asian equity markets ended mixed on Tuesday in the absence of cues from US stock markets, which were closed overnight for a holiday. While a weaker yen, higher oil prices and some progress on Greek bailout deal lent support, gains were capped by lingering concerns about the looming French election and uncertainties over US fiscal and monetary policies. Japanese shares ended higher as comments from a Federal Reserve official that a rate increase next month is not ‘off the table at this point’ bolstered the dollar. Also, preliminary data from IHS Markit showed Japan's manufacturing activity expanded at the quickest pace in nearly three years in February, with output, new orders, employment all increasing at faster rates in the month. Chinese shares ended higher, the highest level in nearly three months, in the wake of reports that the first wave of pension funds are ready to be released into China's capital markets.