Benchmarks trade slightly in red

Indian equity benchmarks were trading slightly in red in morning session, following negative cues from global markets. Sentiments remained pessimistic with Petroleum Minister Dharmendra Pradhan’s statement that crude hovered around $80/barrel, causing domestic auto fuel prices to scale new high. Meanwhile, the rupee declined 25 paise to hit a fresh 16-month low of 68.29 per dollar in early trade ahead of the minutes of US Federal Reserve’s last policy meet scheduled to be released later in the day. Traders overlooked a report that Prime Minister Narendra Modi pledged to double farm incomes by 2022. The most cost-effective way of fulfilling that may be by compensating farmers with cash when market prices of crops fall below support rates.

Weak global cues too dampened sentiments with Asian markets trading mostly in red, after President Donald Trump said he was not satisfied with US-China trade talks, and also said a highly anticipated summit with North Korea may not happen after all. Back home, chemical stocks remained buzzing on report that Commerce Ministry’s investigation arm DGAD has said it is terminating its anti-dumping probe into import of a Chinese chemical used in dye industry. The move comes following domestic industry's request to terminate the probe in the imports of Meta-Phenylene Diamene-4-Sulphonic Acid from the neighbouring nation.

The BSE Sensex is currently trading at 34577.83, down by 73.41 points or 0.21% after trading in a range of 34520.65 and 34667.78. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.19%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were IT up by 0.55%, Industrials up by 0.51%, Power up by 0.48%, Healthcare up by 0.44% and Utilities was up by 0.34%, while Oil & Gas down by 2.23%, Metal down by 1.62%, Energy down by 1.44%, Basic Materials down by 0.72% and Realty was down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 4.43%, Tata Motors up by 2.66%, Tata Motors - DVR up by 1.43%, NTPC up by 1.24% and Sun Pharma was up by 0.78%. On the flip side, Tata Steel down by 3.43%, ONGC down by 2.06%, Indusind Bank down by 2.00%, Dr Reddy’s Lab down by 1.58% and Adani Ports & SEZ was down by 1.49% were the top losers.

Meanwhile, the Commerce Ministry’s investigation arm Directorate General of Anti- dumping and Allied Duties (DGAD) is terminating its anti-dumping probe on chemical imported from China that is used in dye industry. The move comes following domestic industry's request to terminate the probe in the imports of ‘Meta-Phenylene Diamene-4-Sulphonic Acid’ from the neighbouring nation. DGCA had initiated an investigation on January 24 on complaints by domestic players including Chamunda Industries, Matrushakti Industries and Varahi Intermediates.

DGAD has said that “In view of the request of the three petitioners and the provision in Rule 14(a) of the anti-dumping rules, the authority hereby terminates the present anti-dumping investigation concerning imports of ‘Meta-Phenylene Diamene-4-Sulphonic Acid’ originating in or exported from China”. It also said that domestic industry has cited various reasons for its request to terminate the probe. However, it noted that the reasons cited by the domestic industry for termination of the petition appear to have little merit. But, it said that Rule 14(a) of the anti-dumping rules do not grant any discretion to the DGAD in the matter of termination of the investigation, once the domestic industry files a written request for termination of the probe.

Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap below-cost imports. Increasing imports and dumping of goods from China have always been areas of concern for Indian companies. India's exports to China were only $10.2 billion in 2016-17 but imports aggregated to $61.3 billion. Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime.

The CNX Nifty is currently trading at 10500.50, down by 36.20 points or 0.34% after trading in a range of 10480.75 and 10533.55. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were SBI up by 4.49%, Tata Motors up by 2.76%, Cipla up by 2.56%, Tech Mahindra up by 1.46% and Indiabulls Housing Finance was up by 1.32%. On the flip side, HPCL down by 5.92%, BPCL down by 5.45%, Indian Oil down by 3.61%, Tata Steel down by 3.61% and Vedanta was down by 3.28% were the top losers.

Asian markets were trading mostly in red, Hang Seng slipped 325.34 points or 1.04% to 30,909.01, Nikkei 225 declined 256.68 points or 1.12% to 22,703.66, FTSE Bursa Malaysia KLCI fall 28.67 points or 1.55% to 1,816.36, Shanghai Composite losses 25.7 points or 0.8% to 3,188.65 and Taiwan Weighted was down by 17.88 points or 0.16% to 10,920.85.

On the other side, KOSPI Index surged 7.64 points or 0.31% to 2,473.21 and Jakarta Composite was up by 80.92 points or 1.41% to 5,832.04.