Key indices trade with small gains

Key benchmark indices were trading with small gains in early afternoon trade, as value buying was witnessed in Metal, Telecom and TECK counters. Sentiments got some support with the government raising estimate on food grain output for the crop year ended June on an increase in the estimated yields of paddy and wheat. Some support also came with report that American think-tank Council on Foreign Relations’ Senior Fellow for India Alyssa Ayers has said that the country has emerged as a strong world power but still has 'a long way to go'. Moreover, positive trend in Asian markets as tensions between the US and North Korea eased, too supported the markets. In scrip specific development, ITC was trading in green on plan to further increase its investment in the integrated food park at Kapurthala in Punjab to Rs 1,700 crore.

On the global front, Asian markets were trading mostly in green after a rally in dollar was halted on geopolitical tensions, while investors digested the Wednesday’s release of the Federal Reserve’s minutes. Back home, the BSE Sensex is currently trading at 31788.95, up by 18.06 points or 0.06% after trading in a range of 31714.10 and 31937.51. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Metal up by 1.86%, Telecom up by 1.47%, TECK up by 1.13%, Realty up by 1.11% and IT up by 1.11%, while Auto down by 0.50%, Bankex down by 0.43%, Healthcare down by 0.20% and Consumer Disc down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Coal India up by 3.97%, Infosys up by 2.94%, Bharti Airtel up by 1.53%, NTPC up by 1.29% and Reliance Industries up by 0.87%. On the flip side, Hindustan Unilever down by 1.26%, Cipla down by 1.14%, Adani Ports & SEZ down by 0.93%, Maruti Suzuki down by 0.90% and TCS down by 0.90% were the top losers.

Meanwhile, in order to save the domestic industry from surge in below-cost imports, the government has extended anti-dumping duty on import of chemical compound polytetraflouroethylene (PTFE) from China by a further period of five years. This chemical is used as a non-stick coating for pans and other cookware. The revenue department has issued a notification imposing an anti-dumping duty of $2,637 per tonne on imports of PTFE from China.  The duty was initially imposed for a period of five years in August 2011 and extended by one year last August.

In its review of the anti-dumping duty, the department has concluded that there is continued dumping of the product concerned from China, both in absolute terms and in relation to production and consumption in India causing injury to the domestic industry. It noted that PTFE imports were also suppressing domestic prices of similar products. As per its notification, the review found that the performance of the domestic industry has deteriorated in terms of profits and return on investments and the dumped imports from China continue to cause injury to the domestic industry despite imposition of the anti-dumping duty. It added that the anti-dumping duty imposed shall be effective for a period of five years (unless revoked, superseded or amended earlier). 

Commerce and Industry Minister Nirmala Sitharaman had told the Rajya Sabha that anti-dumping duty is in force on 93 products concerning imports from China. These products belong to a broad group of chemicals and petrochemicals, products of steel and other metals, fibres and yarn, machinery items, rubber or plastic products, electric and electronic items and consumer goods, among others. Meanwhile, India’s imports from China in 2016-17 have marginally dipped to $61.28 billion as compared to $61.7 billion in 2015-16.

The CNX Nifty is currently trading at 9903.75, up by 6.45 points or 0.07% after trading in a range of 9884.50 and 9947.80. There were 22 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 4.02%, Coal India up by 3.68%, Infosys up by 3.12%, BPCL up by 2.12% and Bharti Airtel up by 1.77%. On the flip side, Hindustan Unilever down by 1.30%, Cipla down by 1.13%, Indusind Bank down by 1.12%, Tata Motors - DVR down by 0.99% and Bosch down by 0.98% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 0.66 points or 0.04% to 1,774.41, KOSPI Index was up by 13.41 points or 0.57% to 2,361.67, Shanghai Composite rose 17.07 points or 0.53% to 3,263.52 and Taiwan Weighted added 78.98 points or 0.77% to 10,369.37.

On the flip side, Hang Seng decreased 69.56 points or 0.25% to 27,339.51 and Nikkei 225 was down by 26.65 points or 0.14% to 19,702.63.