Benchmarks trades marginally in green

Indian equity benchmarks continue to trade marginally in green, with Nifty and Sensex trading just above the neutral lines. Buying in frontline blue chip stocks such as Hindustan Unilever, Yes Bank, ONGC and Asian Paints too aiding sentiment, while selling in SBI, Coal India and Tata Motors kept the gains in check. The rupee was trading little changed against the US dollar, as traders awaiting further government measures to support the currency. Traders took note of a report stating that India has delayed the implementation of higher tariffs on some goods imported from the United States to November 2, according to a government order that put off for a second time retaliatory action against US import tariffs on steel and aluminium. Some optimism came with a report that markets regulator SEBI has relaxed initial public offer (IPO) norms to allow companies to announce the price band two days before an offering. Meanwhile, FIIs sold equities worth Rs 106.54 crore on net basis on Monday, while DIIs shed shares worth Rs 180.36 crore, provisional data showed.

On the global front, Asian markets were trending mixed, after US President Donald Trump announced overnight that he will impose new tariffs on $200 billion worth of Chinese imports. These tariffs will take effect on Sept 24, starting at 10 per cent, and go up to 25 per cent at the end of the year, unless the two countries agree on a deal. Back home, banking stocks are trading in red, despite Finance minister Arun Jaitley’s statement that the reforms undertaken by the government in the banking sector have started to yield results and recoveries increased on bad loans.

The BSE Sensex is currently trading at 37599.09, up by 13.58 points or 0.04% after trading in a range of 37465.68 and 37745.44. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.24%, while Small cap index was down by 0.26%.

The top gaining sectoral indices on the BSE were FMCG up by 1.24%, Healthcare up by 0.53%, Consumer Durables up by 0.38%, Energy up by 0.30%, Oil & Gas up by 0.16%, while Realty down by 1.34%, PSU down by 1.01%, Bankex down by 0.71%, Metal down by 0.60% and Power was down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.18%, Yes Bank up by 1.93%, ONGC up by 1.16%, Asian Paints up by 0.82% and Adani Ports &Special was up by 0.81%. On the flip side, Tata Motors - DVR down by 1.99%, SBI down by 1.51%, Coal India down by 1.29%, Tata Motors down by 1.23% and Vedanta was down by 1.15% were the top losers.

Meanwhile, Indian government has further postponed the deadline for the imposition of higher customs duties on some products imported from the United States for another 45 days until November 2. Earlier in June, India had decided to impose retaliatory tariffs on some US products, including almonds, walnuts and apples from August 4, but it was extended by another 45 days till September 18.

India and the US are holding two track discussions which include -- increasing trade in short and medium term, and identifying long term trade potentials. The country is stressing for exemption from high customs duty imposed by the US on certain steel and aluminium products, greater market access for its products from sectors, including agriculture, automobile, auto components and engineering and resumption of export benefits to certain domestic products under their Generalised System of Preferences (GSP).

The central government has notified about higher tariffs on several products. Import duty on chickpeas, Bengal gram (chana) and masur dal will be hiked to 70% from 30%, while duty on walnut will be hiked to 120% from 30%. Furthermore, duty on lentils will be hiked to 40% from 30%. Apart from these products, boric acid, phosphoric acid, diagnostic reagent, flat-rolled products of iron, certain flat-rolled products of stainless steel, would attract higher duties.

The CNX Nifty is currently trading at 11378.35, up by 0.60 points or 0.01% after trading in a range of 11335.65 and 11411.45. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 3.09%, Yes Bank up by 2.17%, Dr Reddys Lab up by 1.93%, Titan up by 1.68% and GAIL India was up by 1.49%. On the flip side, Hindalco down by 1.86%, Tech Mahindra down by 1.58%, Coal India down by 1.55%, SBI down by 1.54% and Indian Oil Corporation was down by 1.31% were the top losers.

Asian markets were trading mixed; Hang Seng surged 178.37 points or 0.66% to 27,111.22, KOSPI advanced 5.97 points or 0.26% to 2,308.98, Shanghai Composite jumped 46.19 points or 1.71% to 2,697.98 and Nikkei 225 was up by 325.87 points or 1.39% to 23,420.54.

On the flip side Straits Times lost 4.43 points or 0.14% to 3,136.97, Taiwan Weighted fell 68.40 points or 0.64% to 10,760.21and Jakarta Composite was down by 6.22 points or 0.11% to 5,818.04.