Sensex, Nifty add some gains in late morning session

Indian equity benchmarks added some gains in late morning session, with both Sensex and Nifty trading higher, despite mixed cues from other Asian markets.  Domestic sentiments were positive, as Reserve Bank extended the scheme for encouraging deployment of Point of Sale (PoS) infrastructure to street vendors covered under the PM SVANidhi programme in tier 1 and 2 centres. Some support also came after IT industry body Nasscom said that the new rules for operating drones in the country will usher in new growth opportunities and enable startups and SMEs to create innovative use cases and applications in various sectors like e-commerce, mining and emergency response.

On the global front, Asian markets were trading mixed, after Hong Kong's merchandise exports grew at a softer pace in July. The data from the Census and Statistics Department showed that exports rose 26.9 percent year-on-year in July, after a 33.0 percent increase in June. Imports gained 26.1 percent annually in July, after a 31.9 percent increase in the previous month.

The BSE Sensex is currently trading at 56052.11, up by 103.01 points or 0.18% after trading in a range of 55675.87 and 56078.71. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.61%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.21%, Telecom up by 1.85%, Metal up by 1.52%, Basic Materials up by 1.42% and Industrials up by 1.41%, while Energy down by 0.11% was the only losing index on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.94%, Bharti Airtel up by 2.37%, Ultratech Cement up by 1.94%, Dr. Reddy's Lab up by 1.66% and Sun Pharma up by 1.51%. On the flip side, HDFC down by 0.98%, Indusind Bank down by 0.88%, Infosys down by 0.77%, ICICI Bank down by 0.54% and Nestle down by 0.40% were the top losers.

Meanwhile, with an aim to protect the domestic industry from cheap inbound shipments, the commerce ministry’s arm -- The Directorate General of Trade Remedies (DGTR) has recommended the extension of anti-dumping duty for five years on imports of Melamine, used in beauty and utility products, from China. The DGTR has recommended the duty after conducting a sunset review investigation on the imports. It concluded that the imports from China in relation to total imports, demand and production continued to be significant despite the anti-dumping duty being in existence.

DGTR also said that there is a likelihood of continuation and recurrence of dumping from China and consequent injury to the domestic industry in the event of cessation of the current duty. It said ‘Accordingly, definitive anti-dumping duty...is recommended to be imposed for five years from the date of the notification to be issued by the Central Government, on all imports of subject goods...originating in or exported from the subject country’. It has suggested a duty of $161 per tonne on imports.

For the first time in 2004, the duty was imposed to guard the domestic industry against cheap Chinese Melamine. It was extended in 2010 and then in 2016. The existing duty will exist till September 30. In a separate notification, the finance ministry has extended the anti-dumping duty on imports of ‘Axle for Trailers’ originating in or exported from China. Axle for trailers is used in vehicles. the CBIC has said ‘...the anti-dumping duty shall remain in force up to and inclusive of the 28th January 2022, unless revoked, superseded or amended earlier'. Anti-dumping measures are taken to ensure fair trade and provide a level playing field to the domestic industry. It is not a measure to restrict imports or cause an unjustified increase in the cost of products.

The CNX Nifty is currently trading at 16689.55, up by 52.65 points or 0.32% after trading in a range of 16565.60 and 16691.85. There were 36 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Larsen & Toubro up by 3.78%, Hindalco up by 2.85%, SBI Life Insurance up by 2.78%, Bharti Airtel up by 2.42% and Ultratech Cement up by 1.98%. On the flip side, HDFC down by 0.98%, Indusind Bank down by 0.81%, Infosys down by 0.79%, ICICI Bank down by 0.59% and Nestle down by 0.41% were the top losers.

Asian markets were trading mixed; Hang Seng rose 137.51 points or 0.54% to 25,553.20, Taiwan Weighted gained 91.29 points or 0.53% to 17,158.25, KOSPI added 4.39 points or 0.14% to 3,132.92 and Shanghai Composite was up by 17.17 points or 0.49% to 3,518.83. On the other hand, Nikkei 225 declined 153.88 points or 0.55% to 27,588.41, Straits Times lost 24.69 points or 0.79% to 3,084.73 and Jakarta Composite fell 19.80 points or 0.33% to 6,038.28.