Markets continue to trade lower in noon session

Indian equity benchmarks continued to trade lower in noon session, on the back of profit booking by investors amid a lackluster trade in Asia. Selling pressure in the IT, TECK and Oil & Gas stocks influenced the markets. Traders were worried with data released by Association of Mutual Funds in India (Amfi) showing that equity mutual funds attracted Rs 8,898 crore in July, a 43 per cent decline compared to the preceding month as markets continued to remain volatile amid concerns over inflation and rate hike expectations. Also, investors awaited the release of U.S. inflation data later in the day for cues on the Fed's policy tightening path. Meanwhile, Commerce and industry minister Piyush Goyal has said that negotiations for the proposed free trade agreement (FTA) between India and the UK are progressing at a faster pace. He said the agreement is aimed at boosting bilateral trade and investments between the two countries. On the global front, Asian markets were trading mostly lower after weak inflation readings from China raised concerns over sluggish demand in the region’s largest export destination.

The BSE Sensex is currently trading at 58782.76, down by 70.31 points or 0.12% after trading in a range of 58583.36 and 58984.32. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.17%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.50%, Industrials up by 0.57%, Metal up by 0.54%, Basic Materials up by 0.37% and Bankex was up by 0.18%, while IT down by 1.16%, TECK down by 0.96%, Oil & Gas down by 0.62%, Utilities down by 0.58% and Power was down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.63%, ICICI Bank up by 1.51%, Indusind Bank up by 1.28%, Bharti Airtel up by 1.04% and Sun Pharma was up by 0.93%. On the flip side, Bajaj Finance down by 2.50%, NTPC down by 2.04%, Wipro down by 1.75%, HCL Tech down by 1.57% and Infosys was down by 1.44% were the top losers.

Meanwhile, commerce ministry's arm the Directorate General of Trade Remedies (DGTR) has recommended imposition of anti-dumping duty on imports of a kind of cutting tool from China, for five years, to protect the domestic industry from cheap inbound shipments. The DGTR has recommended the duty after conducting an investigation on the dumped imports of 'resin bonded thin wheels’. It is used in various sectors ranging from welding and cutting.

The directorate in its findings has concluded the item is being imported from China into India in significant quantities in both absolute and relative terms. The imports are undercutting the prices of the domestic industry. The recommended duty was in the range of $78.38 per tonne and $90.12 per tonne on imports. While DGTR, which is under the commerce ministry, recommends the duty, the finance ministry takes the final decision to impose the same within three months of the recommendation.

Countries initiate anti-dumping probes to check if their domestic industries have been hurt because of a surge in below-cost imports. As a countermeasure, they impose duties within the multilateral regime of the WTO (World Trade Organisation). 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 17509.00, down by 16.10 points or 0.09% after trading in a range of 17442.80 and 17566.10. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Apollo Hospita up by 2.47%, UPL up by 1.64%, Coal India up by 1.62%, Larsen & Toubro up by 1.60% and ICICI Bank was up by 1.46%. On the flip side, Bajaj Finance down by 2.55%, NTPC down by 2.13%, Wipro down by 1.73%, ONGC down by 1.68% and HCL Tech was down by 1.58% were the top losers.

Asian markets were trading mostly lower; Jakarta Composite lost 62.32 points or 0.88% to 7,040.56, Hang Seng decreased 522.08 points or 2.61% to 19,481.36, Taiwan Weighted dropped 111.26 points or 0.74% to 14,939.02, Shanghai Composite declined 25.95 points or 0.8% to 3,221.48, Nikkei 225 slipped 180.63 points or 0.65% to 27,819.33 and KOSPI was down by 22.57 points or 0.9% to 2,480.89.

On the flip side, Straits Times was up by 13.22 points or 0.4% to 3,284.20.