Benchmarks extend gains in late afternoon session

The Indian equity benchmarks extended their gains in late afternoon session, with the Sensex and the Nifty gaining over 450 and 100 points, respectively. Traders remain energized after data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed that FDI inflow rose 15 per cent during the April-September period to $30 billion (Rs 2.2 trillion) as compared to inflows of $26 billion during the same period last fiscal, with India being an attractive destination for foreign funds despite the pandemic. Traders overlooked the output of eight core infrastructure sectors dropped 2.5 per cent in October, mainly due to decline in production of crude oil, natural gas, refinery products and steel. The production of eight core sectors had contracted 5.5 per cent in October 2019. The output of eight key sectors is in the negative zone since March. Sector wise, oil & gas sector is trading in green even after crude oil production having 8.98 per cent weight declined by 6.2 per cent in October, 2020 over October, 2019 and natural gas production having 6.88 per cent weight declined by 8.6 per cent in October, 2020 over October, 2019.

On the global front, all Asian markets were trading higher after Chinese manufacturing improved, with investors looking ahead to U.S. Federal Reserve Chairman Jerome Powell’s appearance before legislators. European markets were trading higher after the major averages notched sharp monthly gains for November.

The BSE Sensex is currently trading at 44628.40, up by 478.68 points or 1.08% after trading in a range of 44118.10 and 44649.00. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.69%, while Small cap index was up by 0.91%.

The top gaining sectoral indices on the BSE were Realty up by 3.40%, Telecom up by 2.56%, Oil & Gas up by 2.03%, TECK up by 1.88% and IT was up by 1.75%, while Consumer Durables down by 0.15% were the only losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 5.35%, ONGC up by 3.76%, Bharti Airtel up by 3.41%, Indusind Bank up by 3.19% and Infosys up by 2.72%. On the flip side, Nestle down by 1.53%, Titan Company down by 1.37%, Kotak Mahindra Bank down by 1.35%, Bajaj Finance down by 1.11% and NTPC down by 0.32% were the top losers.

Meanwhile, in order to protect the domestic players and to discourage cheap imports, the commerce ministry has recommended imposition of an anti-dumping duty on imports of a certain type of radial tyres from Thailand. The Automotive Tyre Manufacturers' Association had filed an application before the directorate on behalf of the domestic industry alleging dumping of radial tyres from Thailand.

The ministry's investigation arm -- 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 recommended a duty of up to USD 527.08 per tonne on imports of 'new pneumatic radial tyres of rubber for buses and lorries, with or without tubes and/or flaps' from Thailand for five years.

After completing its probe, the DGTR has concluded that the product has been exported to India from Thailand below its normal value which has impacted the domestic industry. The finance ministry will take the final decision to impose the duty, which would give a level-playing field to domestic players in global markets.

The CNX Nifty is currently trading at 13098.40, up by 129.45 points or 1.00% after trading in a range of 12962.80 and 13103.85. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 7.55%, Sun Pharma up by 5.30%, ONGC up by 3.95%, Bharti Airtel up by 3.56% and Grasim Industries up by 3.49%. On the flip side, Nestle down by 2.86%, Kotak Mahindra Bank down by 1.80%, Titan Company down by 1.63%, Bajaj Finance down by 1.16% and NTPC down by 0.84% were the top losers.

All Asian markets were trading higher, Nikkei 225 surged 353.92 points or 1.34% to 26,787.54, Hang Seng increased 226.19 points or 0.86% to 26,567.68, Taiwan Weighted strengthened 162.78 points or 1.19% to 13,885.67, Jakarta Composite soared 112.32 points or 2% to 5,724.74, Shanghai Composite gained 60.18 points or 1.77% to 3,451.94, KOSPI rose 42.91 points or 1.66% to 2,634.25 and Straits Times was up by 2.88 points or 0.1% to 2,808.83.

European markets were trading higher, UK’s FTSE 100 increased 77.55 points or 1.24% to 6,343.74, France’s CAC increased 40.60 points or 0.74% to 5,559.15 and Germany’s DAX was up by 112.72 points or 0.85% to 13,403.88.