Sensex, Nifty turn positive amid easing WPI inflation

Indian equity benchmarks erased all of their losses to turn positive in early afternoon deals, with both Sensex and Nifty trading marginally higher, amid easing WPI inflation. India’s inflation based on wholesale price index (WPI) maintained the declining trend in the month of May 2023 at (-) 3.48% as against (-) 0.92% recorded in April 2023. Decline in the rate of inflation is primarily contributed by fall in prices of food articles, non-food articles and crude petroleum & natural gas, coal, mineral oils and electricity. Besides, buying at metal, Telecom and Utilities counters helped indices to cut losses. However, gains were limited, as a private Weather forecasting agency predicted a bleak monsoon in India over the next four weeks, raising concerns about the impact on agriculture.

On the global front, Asian markets were trading mixed, after export prices in South Korea were down 1.3 percent on month in May, after rising 0.4 percent in April. On a yearly basis, export prices dropped 11.2 percent after falling 7.2 percent in the previous month. Individually, export prices for agricultural, forestry and marine products rose 1.3 percent on month and lost 7.7 percent on year, while export prices for manufacturing products dropped 1.3 percent on month and 11.2 percent on year.

The BSE Sensex is currently trading at 63201.47, up by 58.31 points or 0.09% after trading in a range of 63013.51 and 63242.72. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.12%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Metal up by 1.28%, Telecom up by 0.86%, Utilities up by 0.74%, Oil & Gas up by 0.74% and Energy up by 0.66%, while IT down by 0.29%, TECK down by 0.25%, Bankex down by 0.19% and Capital Goods down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.89%, NTPC up by 1.46%, Power Grid Corporation of India up by 1.34%, Tata Motors up by 0.93% and Reliance Industries up by 0.91%. On the flip side, Bajaj Finance down by 1.02%, Bajaj Finserv down by 0.99%, Bharti Airtel down by 0.92%, Indusind Bank down by 0.70% and Infosys down by 0.68% were the top losers.

Meanwhile, the commerce ministry's investigation arm the Directorate General of Trade Remedies (DGTR) has recommended for continuation of anti-dumping duty on Chinese steel wheels for five more years with a view to guarding domestic players against cheap imports. In a notification, the DGTR has said that continuation of the existing duties on the imports of Flat Base Steel Wheels from China would address and mitigate the likelihood of injury to the domestic players.

The DGTR has said the authority considers it necessary to recommend the continued imposition of existing definitive anti-dumping for another period of five years. The directorate has recommended $613 per tonne duty on the product. The finance ministry takes the final decision to impose this duty. The product is used in tubed tyre applications in commercial vehicles. In its probe, the DGTR has concluded that there is likelihood of continuation/recurrence of dumping and injury to the domestic industry if the existing duties are not continued.

Wheels India (Wheels India) and Steel Strips Wheels (Steel Strips) in their application to the DGTR had alleged likelihood of continuation or recurrence of the dumping and had requested for initiating sunset review investigation for continuation of antidumping duties in force. The revenue department had imposed the duty on September 13, 2018, for five years.

The CNX Nifty is currently trading at 18747.40, up by 31.25 points or 0.17% after trading in a range of 18690.00 and 18753.80. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 4.87%, Tata Steel up by 1.84%, JSW Steel up by 1.80%, NTPC up by 1.54% and Power Grid Corporation of India up by 1.42%. On the flip side, Bajaj Finance down by 1.01%, Bajaj Finserv down by 0.92%, Bharti Airtel down by 0.89%, Hero MotoCorp down by 0.76% and Indusind Bank down by 0.74% were the top losers.

Asian markets were trading mixed; Hang Seng declined 142.96 points or 0.73% to 19,378.46, Jakarta Composite plunged 31.39 points or 0.47% to 6,687.62, KOSPI dropped 18.87 points or 0.72% to 2,619.08 and Shanghai Composite weakened 4.44 points or 0.14% to 3,229.23, while Straits Times rose 20.88 points or 0.65% to 3,210.28, Taiwan Weighted added 21.54 points or 0.12% to 17,238.14 and Nikkei 225 surged 483.77 points or 1.44% to 33,502.42.