Markets trade flat in negative terrain

Indian equity indices, swinging between gains and losses, were now trading flat with bit of negative bias in afternoon session, as key corporate results remained in focus. The sentiments remained in lackluster mood as United Nations World Economic Situation and Prospects (WESP) 2020 report lowered its GDP growth estimate for India to 5.7 percent in the current fiscal (from 7.6 percent forecast in WESP 2019) and lowered its forecast for the next fiscal to 6.6 percent (from 7.4 percent earlier). Besides, a deprecating rupee against the dollar also dampened the sentiment. However, traders took some support with Minister of State for Finance and Corporate Affairs, Anurag Singh Thakur’s statement that the Centre is taking several measures to boost consumption in a bid to put the country’s economy on the growth path. On the sectoral front, power stocks remained in focus with ICRA’s report that the government’s new scheme to grant over Rs 1.1 lakh crore to state power distribution companies (discoms) is a positive measure for the power sector, given the availability of grants for infrastructure upgradation and the chance to improve the operational efficiency of the discoms.

On the global front, Asian markets were trading mostly in green, as China's economic growth matched expectations in spite of U.S. trade pressures. The world's second-largest economy grew 6.0% in the fourth quarter of 2019 from a year earlier, and 6.1% for the full year. Back home, the BSE Sensex is currently trading at 41926.20, down by 6.36 points or 0.02% after trading in a range of 41850.29 and 42063.93. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.56%, while Small cap index up by 0.33%.

The gaining sectoral indices on the BSE were Telecom up by 1.83%, Energy up by 1.16%, Healthcare up by 0.62%, Auto up by 0.47% and Consumer Durables was up by 0.45%, while PSU down by 0.64%, Bankex down by 0.61%, Metal down by 0.60%, IT down by 0.34% and TECK was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 5.13%, Reliance Industries up by 1.89%, Hero MotoCorp up by 1.53%, Hindustan Unilever up by 0.39% and Nestle was up by 0.34%. On the flip side, Indusind Bank down by 2.28%, HDFC Bank down by 0.89%, Asian Paints down by 0.81%, SBI down by 0.79% and TCS was down by 0.66% were the top losers.

Meanwhile, in order to protect the domestic players and to discourage cheap imports, the Government of India is likely to impose anti-dumping duty on a chemical used in pharma and pesticide industries from China and Saudi Arabia, as a probe has been initiated into an alleged dumping of Dimethyl Formamide from these two countries.

The Directorate General of Trade Remedies (DGTR), which ensures a level playing field to the Domestic Industry against the adverse impact of the unfair trade practices, has initiated an investigation following a complaint filed by Balaji Amines on behalf of domestic industry. On the basis of the prima facie evidence submitted by the company about dumping of the product by firms in these two nations, DGTR initiated an investigation.

In the probe, DGTR will determine the existence, degree and effect of any alleged dumping. If it will be established that the dumping has impacted the domestic industry, the directorate would recommend imposition of the duty. The finance ministry will take the final decision to impose the duty. The period of investigation is January to September 2019 (9 months). It would also look at the data of 2016-19.

The CNX Nifty is currently trading at 12342.35, down by 13.15 points or 0.11% after trading in a range of 12321.40 and 12385.45. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 5.28%, Reliance Industries up by 1.92%, Grasim Industries up by 1.44%, Dr. Reddys Lab up by 1.44% and Hero MotoCorp was up by 1.41%. On the flip side, Bharti Infratel down by 7.10%, GAIL India down by 2.68%, Yes Bank down by 2.50%, Indusind Bank down by 2.30% and Coal India was down by 1.55% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 108.13 points or 0.45% to 24,041.26, Taiwan Weighted strengthened 23.36 points or 0.19% to 12,090.29, Shanghai Composite gained 5.64 points or 0.18% to 3,079.72 and KOSPI was up by 2.52 points or 0.11% to 2,250.57.

On the flip side, Straits Times trembled 3.21 points or 0.1% to 3,274.79, Jakarta Composite lost 10.39 points or 0.17% to 6,275.66 and Hang Seng was down by 16.56 points or 0.06% to 28,866.48.