Bourses maintain upbeat mood in afternoon deals

Indian equity indices maintained their upbeat mood in afternoon session, following gains in Consumer Durables, Capital Goods and Industrials stocks amid unabated buying by domestic institutional investors and rupee recovery. Jubilation continued on Dalal Street on report that the Reserve Bank of India (RBI) will inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds. It added that the government will purchase bonds with maturity ranging between 2020 to 2030. Local investors also cheered with a report stating that India is all set to emerge as the 11th wealthiest country in the world as its personal financial wealth is projected to grow by 13% to $5 trillion by 2022 from the current $3 trillion. Traders ignored Moody’s Investors Service’s report that the excise duty cut on petrol and diesel is credit negative for India as it will reduce government revenue and increase fiscal deficit by 0.1 per cent to 3.4 per cent of Gross Domestic Product (GDP) in the year ending March 2019. On the sectoral front, shares of airline companies, Jet Airways, Interglobe Aviation and SpiceJet were trading higher on the back of media report of likely cut in excise duty on aviation turbine fuel (ATF).

On the global front, Asian counters were trading mostly in green. The markets in Taiwan are closed for the National Day holiday. Back home, the BSE Sensex is currently trading at 34653.68, up by 354.21 points or 1.03% after trading in a range of 34346.50 and 34771.10. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 3.88%, while Small cap index was up by 3.03%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 3.74%, Capital Goods up by 3.19%, Industrials up by 3.16%, Consumer Disc up by 2.83% and Auto up by 2.63%, while IT down by 1.87%, TECK down by 1.41% were the few losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.11%, Maruti Suzuki up by 3.87%, Axis Bank up by 3.36%, Vedanta up by 3.26% and SBI up by 2.95%. On the flip side, Infosys down by 2.80%, TCS down by 2.63%, Wipro down by 2.61% and Sun Pharma down by 0.52% were the top losers.

Meanwhile, with a view to guard domestic players from cheap imports, the government has imposed anti-dumping duty in the range of $719.44 - $128.06 per tonne on import of nylon filament yarn from the European Union (EU) and Vietnam for five years. The duty has been imposed following recommendations by the Directorate General of Trade Remedies (DGTR), the investigation arm of the commerce ministry.

DGTR in its probe stated that nylon filament yarn (multi filament) has been exported to India from these two regions below normal values and the domestic industry has suffered material injury on account of such dumped imports. JCT, Gujarat Polyfilms, Gujarat State Fertilizers and Chemicals, Prafful Overseas and AYM Syntex had jointly filed for initiation of the investigations and imposition of the duty.

The major uses of this yarn are in home furnishing and industrial application such as curtains, sewing and embroidery thread and fishnets. Import of this yarn from the EU and Vietnam has increased to 13,799 tonnes during October 2015 March 2017 (which was the period of investigation) from 7,201 tonnes in 2013-14. Imposing such a duty is permissible under the World Trade Organisation (WTO) regime. Both India and China are members of the Geneva-based body.

The CNX Nifty is currently trading at 10434.25, up by 133.20 points or 1.29% after trading in a range of 10318.25 and 10455.60. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 10.49%, Bajaj Finserv up by 7.52%, Eicher Motors up by 5.69%, Titan Co up by 5.37% and Zee Entertainment up by 5.11%. On the flip side, Wipro down by 3.06%, Infosys down by 2.70%, TCS down by 2.07%, HCL Tech. down by 2.07% and Sun Pharma down by 1.36% were the top losers.

Asian market were trading mostly in green, Shanghai Composite rose 4.83 points or 0.18% to 2,725.84, Nikkei 225 gained 36.65 points or 0.16% to 23,506.04, Jakarta Composite increased 12.77 points or 0.22% to 5,809.56 and Hang Seng was up by 45.01 points or 0.17% to 26,217.92.

On the other side, KOSPI slipped 25.22 points or 1.13% to 2,228.61 and Straits Times was down by 29.92 points or 0.95% to 3,136.68.