Indian equities remain in green terrain

Indian equity benchmarks continued their trade in green territory in afternoon session, driven by well-received earnings reports from some blue-chip firms. The indices remained positive with Crisil’s statement that it expects a recovery in rural demand in the country from March-April onwards owing to an increase in farm incomes, good monsoons and improving urban demand. However, further up move got restricted as anxiety remained among the local traders with a private report that rising inflation is expected to keep the Reserve Bank of India from cutting rates again until late this year, while an expansionary federal budget due next month attempts to put a floor under rapidly-slowing growth. On the sectoral front, the coal stocks remained in focus with a Central Electricity Authority data showing that coal imports by power producers in the country rose by 17.6 per cent during April-December this fiscal to 52.48 million tonnes compared to 44.64 million tonnes a year ago.

On the global front, Asian markets were trading mostly in red as investors remained anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year. Back home, the BSE Sensex is currently trading at 41238.96, up by 123.58 points or 0.30% after trading in a range of 41098.91 and 41377.35. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.87%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.06%, Oil & Gas up by 1.50%, Industrials up by 1.29%, Realty up by 1.27% and PSU was up by 0.99%, while FMCG was down by 0.17% was the lone losing index on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.81%, Infosys up by 1.48%, Axis Bank up by 1.37%, HCL Tech. up by 1.16% and ONGC was up by 0.99%. On the flip side, Tech Mahindra down by 0.94%, Bajaj Finance down by 0.91%, Asian Paints down by 0.78%, Hindustan Unilever down by 0.54% and Reliance Industries was down by 0.51% were the top losers.

Meanwhile, India has started a probe into alleged dumping of newsprint, used in printing of newspapers, from Australia, Canada, European Union, Hong Kong, and Russia, following a complaint by an Indian Newsprint Manufacturers Association. The Association has filed an application before Directorate General of Trade Remedies (DGTR) on behalf of domestic industry for investigation of anti-dumping duty concerning imports of 'Newsprint, in rolls or sheets, excluding glazed newsprint' originating in or exported from five countries.

In a notification, DGTR, under the Commerce Ministry, has stated that on the basis of the prima facie evidence submitted by the association about dumping of the product from these countries, the authority, hereby, initiates an investigation. In the probe, DGTR will determine the existence, degree and effect of alleged dumping on domestic manufacturers. If it is established that the dumping has impacted the domestic industry, the DGTR would recommend imposition of anti-dumping duty.

The finance ministry will take the final decision on imposing these duties. The association has claimed that dumping of the newsprint by companies of these regions have impacted domestic players. The period of investigation is April to December 2019. It would also look at 2016-19 data.

The CNX Nifty is currently trading at 12139.15, up by 32.25 points or 0.27% after trading in a range of 12094.10 and 12179.05. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 5.33%, Indian Oil Corporation up by 5.32%, Larsen & Toubro up by 2.77%, GAIL India up by 2.38% and Tata Motors was up by 1.54%. On the flip side, Zee Entertainment down by 6.04%, UPL down by 2.01%, Tech Mahindra down by 1.09%, Eicher Motors down by 0.94% and Bajaj Finance was down by 0.92% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 611.86 points or 2.16% to 27,729.18, Nikkei 225 slipped 235.91 points or 0.98% to 23,795.44, Shanghai Composite declined 92.60 points or 3.03% to 2,968.15, KOSPI fell 21.12 points or 0.93% to 2,246.13 and Straits Times was down 18.66 points or 0.57% to 3,235.27.

On the flip side, Jakarta Composite was up by 13.22 points or 0.21% to 6,246.67.