Benchmarks continue to trade in green; Healthcare, Power lead

Indian equity benchmarks continued their trade in green in the morning session on account of buying in frontline blue chip counters. The rupee opened lower against dollar on account of buying of American currency by banks and importers. Foreign Portfolio Investors stood net sellers in domestic equity markets on Wednesday and sold shares worth Rs 1,232.99 crore with gross purchases and gross sales of Rs 4,015.30 crore and Rs 5,248.29 crore, respectively. Traders took support with private brokerage firm report which highlighted that India’s GDP growth is expected to be around 7.1% this fiscal following a likely pick up in industrial production as firms resort to restocking post GST especially ahead of festive season. The report added that the ongoing remonetisation will have a positive impact on the cash-intensive services sectors and this in turn will help to augur growth numbers. Investors took note that industry body ASSOCHAM has sought from the government slew of tax relief for companies against whom insolvency proceedings have been initiated. It added that the resolution plans approved after factoring in these reliefs/concessions will result in quick revival of assets, freeing up liquidity for banks for further lending, increased economic activity, job creation, increased contribution to the exchequer and will have multiplier effect on the associated economy. 

Traders were seen piling up position in Healthcare, Power and Oil & Gas sector stocks. In scrip specific development, oil marketing companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) were buzzing after Oil Minister Dharmendra Pradhan said that the government doesn’t plan to intervene to check fuel prices that have soared to the highest in three years. Select stocks related to railways were buzzing after Prime Minister Narendra Modi and Japan PM Shinzo Abe laid the foundation for 508-km bullet train project.

On the global front, Asian markets were trading mostly in red, following a burst of Chinese data which was largely weaker than markets expected. China’s fixed-asset investment, factory output and retail sales all grew less than expected, reinforcing views that the world's second-largest economy is gradually beginning to lose steam in the face of rising borrowing costs. Back home, the BSE Sensex and NSE Nifty were trading above the psychological 32,200 and 10,100 levels respectively. The market breadth on BSE was positive in the ratio of 1455:707, while 114 scrips remained unchanged.

The BSE Sensex is currently trading at 32290.75, up by 104.34 points or 0.32% after trading in a range of 32233.72 and 32328.61. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.91%, while Small cap index was up by 0.94%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.79%, Power up by 1.32%, Oil & Gas up by 0.99%, Industrials up by 0.96% and Capital Goods up by 0.91%, while there were no losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.27%, Sun Pharma up by 2.97%, Tata Motors - DVR up by 1.93%, Cipla up by 1.89% and Dr. Reddy’s Lab up by 1.71%.

On the flip side, Wipro down by 4.24%, Mahindra & Mahindra down by 0.64%, HDFC down by 0.55%, Maruti Suzuki down by 0.28% and Kotak Mahindra Bank down by 0.16% were the top losers.

Meanwhile, the government has imposed an anti-dumping duty of up to $ 60.35 per tonne on imports of a chemical used in fertiliser industry from four countries -- Russia, Indonesia, Georgia and Iran. The move is aimed at protecting domestic players against cheap imports of ‘ammonium nitrate’ from these countries. This anti-dumping duty is in the range of $11.42 - $60.35 per tonne of the chemical and will remain in place for five years.

Deepak Fertilizers and Petrochemicals Corporation and Smartchem Technologies had jointly filed an application before the Directorate General of Antidumping and Allied Duties (DGAD) for initiating the anti-dumping probe. The finance ministry imposed the duty after the DGAD in its finding concluded that the chemical has been exported to India below its normal value, resulting in dumping. After considering the findings of DGAD, the government, hereby imposes the antidumping duty. DGAD has recommended imposition of the duty on the imports.

Countries impose anti-dumping duties to guard domestic industry from surge in below-cost imports. As a counter-measure, they impose the duty. These duties are in compliance with the rules of global trade body World Trade Organisation (WTO). The duties also ensure fair trade by providing a level- playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in the cost of products.

The CNX Nifty is currently trading at 10110.95, up by 31.65 points or 0.31% after trading in a range of 10097.80 and 10126.50. There were 36 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 3.32%, Sun Pharma up by 2.93%, BPCL up by 2.26%, Tata Power up by 2.24% and Tata Motors - DVR up by 2.18%.

On the flip side, Wipro down by 4.29%, Zee Entertainment down by 0.99%, GAIL India down by 0.96%, Mahindra & Mahindra down by 0.91% and Eicher Motors down by 0.78% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 121.31 points or 0.43% to 27,772.77, Nikkei 225 decreased 42.55 points or 0.21% to 19,823.27, Shanghai Composite decreased 6.81 points or 0.2% to 3,377.34, Jakarta Composite decreased 2.77 points or 0.05% to 5,842.97 and FTSE Bursa Malaysia KLCI decreased 1.24 points or 0.07% to 1,784.83.

On the other hand, KOSPI Index increased 0.56 points or 0.02% to 2,360.74 and Taiwan Weighted increased 24.58 points or 0.23% to 10,557.46.