Indian markets maintain upward momentum

Indian stock markets continued to trade in positive terrain in late afternoon deals with Sensex and Nifty trading above 35100 and 10350 levels respectively. Among blue chip stocks, Larsen & Toubro was top gainer up by 4.59%, while Reliance Industries was top loser trading down by 1.13%, Meanwhile, the broader indices, mid cap and small cap indices were also trading up by over 1.00% each. Sentiments remained up-beat with the Fitch Ratings’ report that India is very likely to come out with another round of fiscal stimulus package, worth about 1 percent of Gross Domestic Product (GDP) in the coming months. Fitch, which recently revised India's sovereign rating outlook to 'negative' from 'stable', said it has factored in the outgo for additional fiscal stimulus while deciding on the rating action.

On the global front; Asian markets were trading mostly higher followed by the optimism as US stock market firmed up after White House trade advisor Peter Navarro's clarification that the US-China trade deal remains in place. Back on street, on sectoral front, oil stocks remain in lime light as Indian crude oil processing gathered momentum in May, rising by some 7.3 per cent from April to around 3.87 million barrels per day (bpd) as an easing of restrictions on transport and industrial activity boosted fuel demand.

The BSE Sensex is currently trading at 35146.20, up by 234.88 points or 0.67% after trading in a range of 34843.69 and 35193.62. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.25%, while Small cap index was up by 1.10%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.88%, Power up by 2.68%, Industrials up by 2.07%, Utilities up by 2.03% and FMCG was up by 1.64%, while Energy was down by 0.75% was the only losing index on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 4.59%, Indusind Bank up by 4.09%, NTPC up by 3.62%, Hindustan Unilever up by 2.71% and Power Grid Corporation was up by 2.66%. On the flip side, Reliance Industries down by 1.13%, HDFC Bank down by 0.32%, ICICI Bank down by 0.22%, Bharti Airtel down by 0.21% and HDFC was down by 0.20% were the top losers.

Meanwhile, India has initiated a probe into the alleged dumping of aluminium foil from China, Indonesia, Malaysia and Thailand following a complaint by domestic manufacturers. Hindalco Industries, Raviraj Foils and Jindal India have filed an application before the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR), for investigation of anti-dumping duty concerning imports of 'Aluminium foil 80 micron and below' from these countries.

The applicants have alleged that dumping has impacted the industry and has requested for imposition of the anti-dumping duty on the imports. In a notification, DGTR said that on the basis of prima facie evidence submitted by the applicants, the authority, hereby, initiates an investigation. While DGTR recommends the duty, the finance ministry imposes it. The period of investigation is from April 2019 - March 2020. It would also cover the period from 2016-19.

In the probe, the directorate will determine the existence, degree and effect of any alleged dumping in respect of the product under consideration from the four nations. If it would finds that there is a dumping and it is impacting the domestic manufacturers, it will recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the injury to the domestic industry.

The CNX Nifty is currently trading at 10385.85, up by 74.65 points or 0.72% after trading in a range of 10301.75 and 10402.70. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.62%, Larsen & Toubro up by 4.62%, Indusind Bank up by 4.10%, NTPC up by 3.62% and Hindalco was up by 3.26%. On the flip side, Reliance Industries down by 1.07%, HDFC Bank down by 0.35%, HDFC down by 0.32%, Bharti Airtel down by 0.30% and ICICI Bank was down by 0.18% were the top losers.

Asian markets were trading mostly higher; Shanghai Composite gained 5.32 points or 0.18% to 2,970.59, KOSPI rose 4.51 points or 0.21% to 2,131.24, Hang Seng increased 239.23 points or 0.98% to 24,750.57, Nikkei 225 surged 111.78 points or 0.5% to 22,549.05, Taiwan Weighted strengthened 39.43 points or 0.34% to 11,612.36 and Straits Times was up by 0.36 points or 0.01% to 2,630.05. On the other hand, Jakarta Composite was down by 25.89 points or 0.53% to 4,892.94.