Post Session: Quick Review

Indian equity benchmarks traded on a lackluster note throughout the day and ended in red. Sensex, Nifty closed in red after slipping in last hour of trade as investors booked profit on concerns over valuations. The equity benchmarks erased initial gains to turn flat in early deals as traders opted to remain on sidelines. Traders were getting some support with the government’s statement that rollout of goods and services tax (GST) by and large has been smooth and it has deployed a large number of senior officials to regularly review the working of the new indirect tax regime. Separately, after one month of the implementation of Goods and Services Tax (GST), the collections from customs duty and Integrated-GST (IGST) from imports has almost doubled to Rs 30,000 crore in July.  The July collections compare to indirect tax collection of over Rs 16,000 crore of the same month of 2016. Besides, NITI Aayog Member Bibek Debroy has stated that it is not reasonable to connect the Goods and Services Tax (GST) regime with slowdown in manufacturing output as the issues that the sector is facing goes beyond the tax reform. He also said that these are very temporary things which they don't need to worry about because it is a blip that will go away once the transition is complete. Selling crept in on ASSOCHAM report that with the external value of the Indian rupee superseding its internal strength despite lower inflation, the resultant mismatch and the continuing trend is hurting exporters, whose competitive edge gets directly hit with the declining value of the dollar against the domestic currency.

On the global front, Asian markets closed mostly in green, as markets welcomed harder sanctions on North Korea’s missile and nuclear programs, thought caution ruled with the reclusive country yet to respond. China’s banking regulator has extended by two months a June deadline for banks to submit risk assessments over concerns it was putting strain on the lenders. European markets were trading mostly in green although global geopolitical tensions persisted. Investors’ sentiments in the euro zone remained stable in August, buoyed by strong current conditions, but future expectations slumped amid growing concerns about the US economy and the potential impact of a widening car emissions scandal.

Back home, tyre companies like Apollo Tyre, MRF, Ceat, JK Tyre, Balkrishna Industries, TVS Srichakra and Goodyear India closed in green on hopes that India may impose anti-dumping duty of up to $452.33 per tonne on a certain variety of Chinese pneumatic radial tyres to guard domestic players from cheap imports. The commerce ministry’s investigation arm - Directorate General of Anti-dumping and Allied Duties (DGAD) - has concluded in its final findings that domestic companies have suffered material injury due to the dumped imports of these tyres from China.

The BSE Sensex ended at 32247.12, down by 78.29 points or 0.24% after trading in a range of 32237.36 and 32396.14. There were 9 stocks advancing against 22 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.02%, while Small cap index was up by 1.14%. (Provisional)

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.45%, PSU up by 1.28%, Metal up by 1.23%, Realty up by 1.03% and Basic Materials up by 0.73%, while IT down by 1.04%, TECK down by 0.93% and Telecom down by 0.17% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 4.34%, SBI up by 1.69%, Adani Ports & Special Economic Zone up by 1.62%, ICICI Bank up by 1.13% and Coal India up by 1.08%. (Provisional)

On the flip side, Infosys down by 1.81%, Dr. Reddy’s Lab down by 1.79%, Tata Motors - DVR down by 1.64%, NTPC down by 1.55% and Mahindra & Mahindra down by 1.50% were the top losers. (Provisional)

Meanwhile, in a bid to protect domestic players from below cost imports, the government may impose anti-dumping duty on castings for wind operated power generators made in China.

The Directorate General of Antidumping and Allied Duties (DGAD) which administers the anti-dumping and countervailing measures in India, has recommended the imposition of definitive anti-dumping duty on imports of such products, as it concluded that the products have been exported to India from China at below normal values due to which the domestic industry has suffered material injury.

In its latest notification, DGAD recommended a duty equivalent to the difference between the quantum of anti-dumping duty calculated and the quantum of anti-subsidy duty payable. Earlier, Larsen & Toubro had appealed to DGAD for initiation of anti-dumping probe on imports of a certain type of castings.

The CNX Nifty ended at 10053.60, down by 12.80 points or 0.13% after trading in a range of 10050.25 and 10088.10. There were 19 stocks advancing against 32 stocks declining on the index. (Provisional)

The top gainers on Nifty were Tata Steel up by 4.28%, Indian Oil up by 2.71%, SBI up by 1.97%, BPCL up by 1.90% and Adani Ports & Special Economic zone up by 1.61%. (Provisional)

On the flip side, Bharti Infratel down by 2.40%, Tata Motors - DVR down by 1.88%, NTPC down by 1.75%, Infosys down by 1.62% and Dr. Reddy’s Lab down by 1.50% were the top losers. (Provisional)

The European markets were trading mostly in green; UK’s FTSE 100 increased 10.32 points or 0.14% to 7,522.03, France’s CAC increased 5.67 points or 0.11% to 5,209.11, while Germany’s DAX decreased 40.69 points or 0.33% to 12,257.03.

Asian equity markets closed mostly higher on Monday after better-than-expected US jobs data generated optimism about growth in the world's largest economy, but spurred expectations that it could lead to a third rate rise this year in December by the Federal Reserve. US non-farm payroll employment surged up by 209,000 jobs in July after spiking by an upwardly revised 231,000 jobs in June. The jobless rate edged down to 4.3 percent from 4.4 percent in June. Investors also awaited Pyongyang's response after the UN Security Council unanimously approved tough new sanctions Saturday to punish North Korea for its escalating nuclear and missile programs. Japanese shares ended higher as the yen weakened on better-than-expected US jobs data and Toyota raised its earnings outlook. Chinese shares ended higher ahead of forex reserves, trade and inflation data due this week.