Barometer gauges continue to trade in high spirit

Indian equity benchmarks continue to trade in high spirit in afternoon session, with Sensex and Nifty trading above 37,850 and 11,150 levels, respectively. Among blue chip stocks, Maruti Suzuki was top gainer up by 4.05%, while Sun Pharma was top loser trading down by 1.41%. Besides, broader indices were also trading in green, supporting their larger peers. Domestic sentiments were positive with a labour ministry’s statement that retail inflation for farm and rural workers in June eased to 7.16 per cent and 7 per cent, respectively, as compared to May this year. Meanwhile, Human trials for Covaxin, one of the first potential vaccines developed in India in the fight against Covid-19, is underway in 12 centres across the country. The ICMR had identified 12 clinical trial sites such as medical institutions and hospitals like AIIMS, NIMS, and others.

On the global front, Asian markets were trading higher with the positive results from trials of experimental Covid-19 vaccines offsetting worries about the rise in coronavirus cases worldwide. Back on street, the market breadth on BSE was positive, out of 2618 stocks traded, 1376 stocks advanced, while 1099 stocks declined on the BSE, while 143 stocks remain unchanged.

The BSE Sensex is currently trading at 37897.99, up by 479.00 points or 1.28% after trading in a range of 37742.05 and 37923.38. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.31%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were Realty up by 3.13%, Oil & Gas up by 2.79%, Energy up by 2.47%, PSU up by 2.41% and Bankex was up by 1.87%, while Telecom down by 1.42%, Metal down by 0.55%, FMCG down by 0.25% and Healthcare was down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.05%, HDFC up by 3.50%, Power Grid Corporation up by 3.36%, ICICI Bank up by 3.24% and Axis Bank was up by 2.88%. On the flip side, Sun Pharma down by 1.41%, Bharti Airtel down by 1.04%, Asian Paints down by 0.65%, Mahindra & Mahindra down by 0.35% and Tata Steel was down by 0.26% were the top losers.

Meanwhile, Directorate-General of Trade Remedies (DGTR), under the Ministry of Commerce and Industry, has initiated a probe into alleged low-cost imports of a certain type of yarn from China, which is impacting the domestic industry. DGTR has started the probe to assess if the subsidy programme of China for exports of 'Viscose Rayon Filament Yarn above 60 deniers’ is impacting the Indian industry. The product resembles silk, cotton and wool in its feel and texture. It is used in making woven fabrics, home furnishings, knitting and others. It is a popular choice for making fabrics such as georgettes, crepes and chiffon.

Association of Man-Made Fibre Industry of India (AMFII) has filed an application before the DGTR, on behalf of domestic industry, for anti-subsidy investigation on the imports of this yarn from China. The applicant has alleged that material injury to the domestic industry is being caused due to subsidized imports from China and has requested for imposition of countervailing duty on these imports. In a notification, DGTR said on the basis of the duly substantiated written application by or on behalf of the domestic industry, and having satisfied itself, on the basis of the prima facie evidence submitted by the domestic industry, substantiating subsidization of the yarn originating in or exported from China, the authority hereby initiates an investigation to determine the existence, degree and effect of alleged subsidies and to recommend the amount of countervailing duty, which, if levied, would be adequate to remove the injury to the domestic industry.

If it is established that subsidies by China are impacting domestic industry, the DGTR would recommend the amount of countervailing duty, which if levied, would be adequate to remove the injury to the domestic industry. The period of investigation is from April 2019 -March 2020. However, it would also look into the data of 2016-19 periods.

The CNX Nifty is currently trading at 11159.25, up by 137.05 points or 1.24% after trading in a range of 11113.25 and 11164.45. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were BPCL up by 7.42%, Indian Oil Corporation up by 4.53%, Eicher Motors up by 4.15%, Maruti Suzuki up by 4.13% and HDFC was up by 3.49%. On the flip side, Bharti Infratel down by 1.87%, Britannia Industries down by 1.74%, Hindalco down by 1.65%, Sun Pharma down by 1.32% and Cipla was down by 1.30% were the top losers.

All Asian markets were trading higher; Straits Times advanced 11.75 points or 0.45% to 2,628.05, Jakarta Composite soared 68.69 points or 1.36% to 5,119.80, KOSPI rose 30.63 points or 1.39% to 2,228.83, Taiwan Weighted strengthened 223.01 points or 1.83% to 12,397.55, Nikkei 225 surged 166.74 points or 0.73% to 22,884.22, Shanghai Composite gained 9.19 points or 0.28% to 3,323.34 and Hang Seng was up by 460.65 points or 1.84% to 25,518.64.