Post Session: Quick Review

Indian equity markets traded on firm note for most part of the day but ended flat. Market slips in last hour of trade with Nifty slipping below 10,450 mark. The market breadth was in favour of advances with two stocks advancing against every declining one. The equity benchmarks made a positive start and traded in fine fettle in early deals amid supportive global cues. The sentiments were upbeat on foreign brokerage report that India’s growth rate is expected to accelerate over the coming year and is likely to improve further to 7.6% by 2019-20 as key sectors would revive from disruptions related to the implementation of GST and demonetization. The report further said the recovery in India’s GDP growth will likely be relatively gradual, preventing price pressures from rebounding and allowing the Reserve Bank of India to keep rates on hold for the time being. Separately, Finance Minister Arun Jaitley ruled out having a single rate for all commodities under the Goods and Services Tax (GST) saying items like food products have been placed at minimum taxation levels while luxury goods were in the higher categories. Some support also came with the Rajya Sabha unanimously passing the Insolvency and Bankruptcy Code (Amendment) Bill that replaces an Ordinance that prevents unscrupulous persons from misusing or vitiating the provisions of the Insolvency and Bankruptcy Code.

Meanwhile, investors took note that the government has notified lower 1% GST rates for manufacturers who have opted for composition scheme as well as easier norms for traders opting for it. The finance ministry has notified the changes decided by the GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, in November 2017. The notification stipulates that manufacturers who have opted for composition scheme will now have to pay 1% GST as against 2% earlier. Select auto related stocks were buzzing after rating agency ICRA forecasted domestic tractor industry to touch an all time high sales in FY-18 led by improved farm sentiments and two consecutive normal monsoon. The agency expects domestic tractor industry to record a volume growth of 12-13% during FY-18 with positive growth momentum also likely to spill over in next fiscal.

On the global front, Asian markets closed mostly in green. North Korean leader Kim Jong Un has given an order to open a long-closed border hotline with South Korea for talks. South Korea will consider measures to boost capital outflows if the won continues to rise sharply, a move that could help the trade-reliant national deal with the economic effects of a surging currency. The European markets were trading mostly in green. UK construction sector activity eased slightly in December, missing forecasts and dampening optimism over the British economy.

The BSE Sensex ended at 33796.00, down by 16.26 points or 0.05% after trading in a range of 33765.43 and 33998.37. There were 15 stocks advancing against 16 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.52%, while Small cap index was up by 1.01%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 1.68%, Basic Materials up by 1.53%, Metal up by 1.37%, Industrials up by 1.14% and Consumer Durables up by 0.65%, while Auto down by 0.55%, IT down by 0.38%, Oil & Gas down by 0.27%, TECK down by 0.26% and Healthcare down by 0.19% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports & Special Economic Zone up by 2.75%, Larsen & Toubro up by 2.43%, ICICI Bank up by 1.79%, Yes Bank up by 1.41% and Coal India up by 0.72%. (Provisional)

On the flip side, Dr. Reddy’s Lab down by 3.02%, Wipro down by 2.87%, ONGC down by 1.70%, Bajaj Auto down by 1.49% and Maruti Suzuki down by 1.38% were the top losers. (Provisional)

Meanwhile, with an aim to protect the domestic players against cheap chemical imports, the government may impose anti-dumping duty of up to $397 per tonne on the imports of Sulphonated Naphthalene Formaldehyde chemical from 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 chemical for a period of five years, as it found that the chemical has been exported to India from China at below normal value, causing material injury to the domestic industry.

Himadri Speciality Chemical, which is an integrated specialty carbon entity and one of the leading manufacturers of coal tar pitch (CTP), carbon black and SNF (Sulphonated Naphthalene Formaldehyde), had filed an application for initiation of anti-dumping investigation concerning imports of ‘SNF’ originating in or exported from People’s Republic of China.

The CNX Nifty ended at 10446.75, up by 4.55 points or 0.04% after trading in a range of 10429.55 and 10503.60. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Ports & Special Economic Zone up by 2.86%, Larsen & Toubro up by 2.72%, Hindalco up by 1.69%, ICICI Bank up by 1.68% and Ambuja Cement up by 1.57%. (Provisional)

On the flip side, Dr. Reddy’s Lab down by 2.85%, Wipro down by 2.78%, Bajaj Auto down by 1.90%, ONGC down by 1.63% and Maruti Suzuki down by 1.40% were the top losers. (Provisional)

The European markets were trading mostly in green; Germany’s DAX increased 41.47 points or 0.32% to 12,912.86, France’s CAC increased 14.87 points or 0.28% to 5,303.47, while UK’s FTSE 100 decreased 0.42 points or 0.01% to 7,647.68.

Asian equity markets ended mostly in green on Wednesday, with firmer commodity prices on the back of a weaker dollar and optimism about global growth buoying investors’ sentiments. The dollar held somewhat steady in Asian trading as investors looked ahead to the minutes of the Federal Reserve's December policy meeting due later in the day. Chinese shares extended its rally, aided by strong gains in consumer and transport firms. Meanwhile, the Japanese market was closed for a holiday.