Barometer gauges continue to trade in green

Stock markets were trading in positive terrain in the early noon session due to buying in Metal, Power and Healthcare sectors. Besides, Vedanta, Tata Motors and Tata Steel were contributing most gains to Sensex, while JSW Steel and Indiabulls Housing were contributing most gains to Nifty. Both Sensex and Nifty were trading above the crucial 38600 and 11550 levels, respectively. Traders remained optimistic as Commerce Minister Suresh Prabhu has said that the country’s merchandise and services export would touch about $540 billion mark in the current fiscal year ending March 31, 2019. He added that exports are growing at a healthy pace and shipments of goods would reach over $330 billion, similarly, services exports would touch about $200 billion. However, gains remain restricted as Central Board of Direct Taxes (CBDT) has rung alarm bells and asked the Income Tax Department to go for a major assault as the direct tax collection target remains short of about 15 percent, as just few days left for the end of the financial year, i.e., March 31. Meanwhile, the commerce ministry has launched a blockchain-based coffee e-marketplace to help farmers integrate with markets so that they can realize fair prices for the commodity. The blockchain will reduce the number of layers between coffee growers and buyers and help farmers double their income.

On the global front, Asian markets were trading mostly in green, led by China’s consumer market spurred on from reasonable reports out of the trade talks with the US and the Chinese government signaling further stimulus. Back home, the government has transferred Rs 5,940 crore as the first installment of Rs 2,000 each to 29.7 million small and marginal farmers across the country, which is set to fuel the rural economy during the poll season. On scrip specific development, TVS Motor trade higher on launching TVS Apache RTR 160 4V in Colombia. A testimony to the racing legacy of the TVS Apache series, the TVS Apache RTR 160 4V is the most powerful 160cc motorcycle, creating a new benchmark in the segment.

The BSE Sensex is currently trading at 38619.39, up by 73.67 points or 0.19% after trading in a range of 38546.68 and 38748.54. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.77%, while Small cap index was up by 0.49%.

The top gaining sectoral indices on the BSE were Metal up by 2.34%, Power up by 1.47%, Healthcare up by 1.20%, Basic Materials up by 1.15% and Auto was up by 1.13%, while Consumer Durables down by 0.44%, Bankex down by 0.23% and FMCG was down by 0.06% were the few losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 3.76%, Tata Motors up by 2.23%, Tata Steel up by 2.09%, Tata Motors - DVR up by 1.95% and Maruti Suzuki was up by 1.87%. On the flip side, Indusind Bank down by 1.90%, Bajaj Auto down by 1.23%, ITC down by 1.13%, Axis Bank down by 1.06% and HCL Technologies was down by 0.81% were the top losers.

Meanwhile, the commerce ministry has recommended imposition of definitive countervailing duty on the imports of new Pneumatic Tyres for Buses and Lorries from China. The move is aimed at guarding domestic players from the increase in imports that are subsidised by the neighbouring nation. The ministry’s dumping investigation arm Directorate General of Trade Remedies (DGTR) in its findings after a probe has said that imposition of definitive countervailing duty is required to offset subsidisation.

In its findings, the DGTR said since the product already attracts anti-dumping duty from China, the amount of countervailing duty to be imposed would be the difference between the quantum of specified countervailing and anti-dumping duty payable. It also said the domestic industry has contended that China is providing countervailable subsidies to the producers and exporters of these tyres.  The finance ministry takes final call for imposition of the duty. Following a complaint by from the Automotive Tyre Manufacturer's Association, the directorate had initiated the probe. They have filed a petition on behalf of domestic producers for imposition of the duty on these imports.

Countervailing duty is a country-specific duty, which is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations. India has already imposed countervailing duty as well as anti-dumping duties on various kinds of products from China, with which India has a huge trade deficit. Imports of these tyres from China increased to 81,896 tonne in 2016-17 from 30,665 tonne in 2014-15. India has a trade deficit of $63.12 billion in 2017-18 with China as compared to $51.11 billion in the previous year.

The CNX Nifty is currently trading at 11588.50, up by 18.50 points or 0.16% after trading in a range of 11570.15 and 11630.20. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 3.88%, JSW Steel up by 2.81%, Indiabulls Housing up by 2.71%, Tata Motors up by 2.32% and Tata Steel was up by 2.22%. On the flip side, Indusind Bank down by 1.97%, Titan down by 1.71%, Bajaj Auto down by 1.59%, GAIL India down by 1.48% and Eicher Motors was down by 1.42% were the top losers.

Asian market were trading mostly in green, KOSPI rose 11.16 points or 0.52% to 2,139.26, Shanghai Composite gained 71.75 points or 2.4% to 3,066.69, Hang Seng increased 283.56 points or 0.99% to 29,058.77, Nikkei 225 surged 172.16 points or 0.82% to 21,205.92, Taiwan Weighted strengthened 81.48 points or 0.77% to 10,617.74 and Straits Times was up by 14.57 points or 0.45% to 3,218.15. On the other hand, Jakarta Composite was down by 37.15 points or 0.57% to 6,443.64.