Benchmarks continue firm trade in noon session

Indian equity benchmarks continued to trade firm in noon session on account of buying by funds and retail investors ahead of March quarter earnings, which begin later this week. Sentiments got some support with the report that India’s oil consumption fell for the third straight month in March as the demand growth in diesel, petrol and other products came to a crawl. The oil demand fell by 0.65% in March to 17,358 thousand metric tonnes (TMT). Besides, optimistic buying in blue-chip stocks ahead of industrial production (IIP) data for February and retail inflation for March tomorrow also kept markets on course. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 558.25 crore on April 10, 2017. Investors remained cautious with the report that India's inflation is seen climbing to within touching distance of the central bank's 4% medium-term target in March, driven by higher food costs. According to the report, having sunk to its lowest level for at least five years in January, consumer price inflation is expected to have risen to 3.98% last month from February's 3.65%.

On the global front, Asian markets were trading lower on Tuesday as the political tinderbox in the Middle East and the Korean Peninsula added to uncertainty over the looming French vote, pushing edgy investors into safer assets such as the yen and Treasuries. However, US markets managed a modestly positive close in last session despite a lackluster day of trade. There was nothing much on economic front and traders were eyeing reports on retail sales, producer and consumer prices, and import and export prices later this week.

Back home, stocks from FMCG, PSU and IT counters were supporting the markets’ uptrend, while those from Metal, Utilities and Power counters were adding to the underlying cautious undertone. In scrip specific development, Aarti Industries gained after the company received an approval of an investment of Rs 75 crore to set up a world class R&D, scale-up and innovation complex at Jhagadia, Gujarat. Furthermore, Gujarat Industries Power Company (GIPCL) jumped after the company commissioned 12.6 MW (6 WTGs x 2.1 MW) Wind Turbine Generators (WTGs) of the Kuchhdi Wind Farm site, Porbandar district in state of Gujarat. 

The market breadth remained optimistic, as there were 1676 shares on the gaining side against 823 shares on the losing side, while 116 shares remained unchanged.

The BSE Sensex is currently trading at 29735.82, up by 160.08 points or 0.54% after trading in a range of 29570.58 and 29787.05. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.30%, while Small cap index up by 0.74%.

The top gaining sectoral indices on the BSE were FMCG up by 0.95%, PSU up by 0.75%, IT up by 0.73%, Realty up by 0.71% and Telecom up by 0.70%, while Metal down by 1.43%, Utilities down by 0.91%, Power down by 0.87% and Basic Materials down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.79%, Infosys up by 1.30%, HDFC up by 1.16%, ICICI Bank up by 0.99% and SBI up by 0.90%. On the flip side, NTPC down by 1.68%, Tata Steel down by 1.14%, Bajaj Auto down by 0.75%, Mahindra & Mahindra down by 0.75% and Cipla down by 0.43% were the top losers.

Meanwhile, furthering its tirade against cheap imports and to protect the domestic steel industry, the government may impose anti-dumping duties on certain hot and cold rolled steel products from various countries, including China, Japan and Korea.

The Directorate General of Antidumping and Allied Duties (DGAD) which administers the anti-dumping and countervailing measures in India, in separate investigations recommended anti-dumping duties on hot-rolled flat products of alloy or non-alloy steel from China, Japan, Korea, Russia, Brazil and Indonesia. In two separate investigations, the DGAD concluded that there has been a significant increase in the volume of dumped imports from these nations.

DGAD has also recommended imposing duties on cold-rolled cold reduced flat steel products of iron or non-alloy steel or other alloy steel of all widths and thickness, not clad, plated or coated' from China, Japan, Korea and Ukraine. Moreover, in its two separate investigations, the DGAD has found that there has been a significant increase in the volume of dumped imports from these nations, due to which the domestic industry has suffered material injury.

In its latest notification DGAD has stated that the import of hot-rolled flat products from certain firms of countries like China, Japan, Korea, Russia, Brazil and Indonesia may attract an anti-dumping duty equivalent to the difference between the landed value of steel products and $ 489 per tonne. On the other hand, the import of cold-rolled steel items from China, Japan, Korea and Ukraine may attract an anti-dumping duty equivalent to the difference between the landed value of steel products and $ 576 per tonne.

The CNX Nifty is currently trading at 9225.45, up by 44.00 points or 0.48% after trading in a range of 9172.85 and 9237.60. There were 37 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.92%, BPCL up by 1.47%, Yes Bank up by 1.34%, Infosys up by 1.32% and ICICI Bank up by 1.17%. On the flip side, Tata Power down by 4.42%, NTPC down by 1.86%, ZEEL down by 1.73%, Tata Steel down by 1.08% and Grasim Industries down by 0.77% were the top losers.

Asian markets were trading in red; Hang Seng decreased 0.94%, Nikkei 225 declined 0.56%, Taiwan Weighted shed 0.51%, Shanghai Composite fell 0.57%, KOSPI Index dropped 0.36%, FTSE Bursa Malaysia KLCI decreased 0.32% and Jakarta Composite was down by 0.22%.