Local bourses cool off from the high point; weakness creeps into CG space

Local bourses after getting a gap up opening at the start of the new week have now cooled off from their high point as wary investors taking the opportunity of global rally, initiated selling at higher levels. A pledge by European leaders to protect the region’s banks against a continent-wide debt crisis on the weekend mainly led to early jubilant mood at Dalal Street. However, the fears of another rate hike which resurfaced in have apparently prompted some investor’s to square off their position ahead of RBI’s mid quarterly monetary policy review tomorrow. On the global front, S&P 500 posted its third straight week of gains on Friday, lifted by optimism before this weekend's summit of European leaders and strong earnings from blue-chip stocks. The Dow Jones industrial average was up 267.01 points, or 2.31 percent, at 11,808.79. The Standard & Poor's 500 Index was up 22.86 points, or 1.88 percent, at 1,238.25. The Nasdaq Composite Index was up 38.84 points, or 1.49 percent, at 2,637.46. Meanwhile, Asian shares rose on Monday as data from China helped allay fears of a hard-landing in the world's second-largest economy. Asian shares climbed for a second day as a report showed China’s manufacturing may expand for the first time four months and after European leaders inched towards a revamped strategy to contain the region’s debt crisis. German chancellor Angela Merkel and French President Nicolas Sarkozy said on Sunday that they would finalize a comprehensive response to the debt crisis by the end of the month, including a plan to make sure European banks have adequate capital. Back home, the street also got some reason to rejoice as they anticipate RBI to pause after hiking rate for the last time in the upcoming monetary policy, which apparently have a fuelled a rally in rate sensitive’s. However, some weakness has crept in, as index of Capital Goods has edged lower by 0.12%. 30 share barometer index on BSE-Sensex-sustaining over 250 points- are trading above 17k level. Meanwhile, broadly followed 50 share index on NSE-Nifty-gaining over 50 points are trading above 5100 level. The broader indices following the path of frontline index have pared substantial gains. The overall market breadth on BSE is in the favour of declines which have outperformed advances in the ratio of 1421:773, while 102 shares remained unchanged.

The BSE Sensex is currently trading at 17,051.91, up by 266.27 points or 1.59%. The index has touched a high and low of 17,104.88 and 17,006.28 respectively. There were 27 stocks advancing against just three declining one’s the index.

The broader indices however, kept underperforming the benchmarks; the BSE Mid cap and Small cap indices were up by 0.70% and 0.67% respectively.

The top gaining sectoral indices on the BSE were Auto up by 2.26%, IT up by 2.11%, Realty up by 2.10%, Bankex up by 1.77% and Consumer Durable up by 1.76%

The top gainers on the Sensex were Tata Motors up by 4.41%, Sterlite Industries up by 3.52%, TCS up by 3.45%,  Bajaj Auto up by 3.31% and Hindalco Industries up by 2.84%.

On the flip side, L&T down by 1.09%,  Coal India down India down by 0.70% and  Bharti Airtel down by 0.11% were the losers on the index.

Meanwhile, the Revenue Department under the Ministry of Finance has imposed definitive anti-dumping duty on certain imported rubber chemicals namely ‘MBTS' Dibenzothiazole disulphide from China, for the coming five years with effect from October 20, 2011.

The ministry of finance has imposed the anti-dumping duty of $0.23/kilogram on all MBTS imported from China. The similar duty will be applicable even for the MBTS products from countries other than china and exported from china.

The finance ministry has imposed definitive anti-dumping duty on the suggestion of the designated authority in the Commerce Ministry after the sunset review. The sunset review is targeted at cancelling or continuing with or enhancing the existing definitive anti-dumping duty which was to complete its five year period. 

The MBTS is mainly used in the manufacturing of rubber products as an accelerator finds wider application in the manufacture of automotive tyres, conveyor belts and foodwear industry. The National Organic Chemical Industries had filed the original complaint.

Dumping is said to have taken place when an exporter sells a product to India at a price less than the price prevailing in its domestic market. However, the phenomenon of dumping is per se not condemnable as it is recognized that producers sell their goods at different prices to different market. Dumping occurs when the export price of goods imported into India is less than the Normal Value of ‘like articles’ sold in the domestic market of the exporter.

The S&P CNX Nifty is currently trading at 5,131.90, higher by 81.95 points or 1.62%. The index has touched a high and low of 5,144.75 and 5,111.35 respectively. There were 46 stocks advancing against just 4 declining one’s on the index.

The top gainers of the Nifty were Tata Motors up by 4.32%, Sterlite Industries up by 3.57%, Bajaj Auto up by 3.38%, TCS up by 3.34% and RPower up by 2.81%.

On the flip side, RCom down by 1.55%, L&T down by 1.06%, Coal India down by 0.61% and  Bharti Airtel down by 0.09% were the losers on the index.

Most of the Asian equity indices continue to trade in good contour; Shanghai Composite gained 1.22%, Hang Seng gained 3.92%, Jakarta Composite gained 2.22%, KLSE Composite gained 1.32%, Nikkei 225 gained 1.64%, Straits Times gained 2.00%, Seoul Composite gained 2.80% and Taiwan Weighted gained 2.87%.