Weak trade persists in Indian markets

A weak trade persisted in Indian equity markets, with both Sensex and Nifty trading in red, with sentiment dented by mixed global cues and rising oil prices amid heightened geopolitical tensions. Investors awaited further indications from the Federal Reserve might begin cutting interest rates. However, losses remained capped as traders took support from the Retirement fund body, Employees' Provident Fund Organisation’s (EPFO) latest ‘Provisional payroll data’ report showing that 16.02 lakh net members have been added in the month of January 2024. Adding some relief among traders, a private report stating that the Reserve Bank of India (RBI) will keep interest rates unchanged until at least July, a bit longer than the U.S. central bank is expected to do so, on strong growth and still-elevated inflation.

On the global front, Asian markets were trading mixed, after South Korea's consumer sentiment decreased in March from a 6-month high in February. The survey results from the Bank of Korea showed that the consumer confidence index dropped to 100.7 in March from 101.9 in the previous month. The consumer confidence survey was conducted between March 12 and 19 among 2,500 households.

The BSE Sensex is currently trading at 72612.75, down by 219.19 points or 0.30% after trading in a range of 72363.03 and 72705.29. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.49%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.12%, Realty up by 0.84%, Energy up by 0.83%, Capital Goods up by 0.81% and PSU up by 0.72%, while TECK down by 0.61%, IT down by 0.44%, Bankex down by 0.28%, Telecom down by 0.20% and FMCG down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.32%, Bajaj Finserv up by 1.80%, NTPC up by 1.06%, Tata Motors up by 0.91% and Larsen & Toubro up by 0.88%. On the flip side, Power Grid down by 1.78%, Wipro down by 1.18%, Ultratech Cement down by 1.08%, Bharti Airtel down by 0.96% and Infosys down by 0.96% were the top losers.

Meanwhile, India has initiated an anti-dumping probe into the import of aluminium foil, used as a packaging material for conservation and preservation of edible and food products, from China following a complaint by domestic players. The commerce ministry's investigation arm, Directorate General of Trade Remedies (DGTR), is probing the alleged dumping of aluminium foil.  Hindalco Industries, Shyam Sel & Power, Shree Venkateshwara Electrocast, Ravi Raj Foils, GLS Foils Product and LSKB Aluminium Foils have filed the application on behalf of the domestic industry seeking the probe. They have alleged dumping of the product from China.

The DGTR, in a notification, has said that the applicants have provided prima facie evidence with respect to the injury suffered by the domestic industry because of the dumped imports. It said the authority hereby initiates an anti-dumping investigation into the alleged dumping and consequent material injury to the domestic industry.  If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on the imports. The finance ministry takes the final decision to impose duties. 

Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters. India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.

The CNX Nifty is currently trading at 22048.40, down by 48.35 points or 0.22% after trading in a range of 21947.55 and 22073.20. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.40%, Bajaj Finserv up by 1.73%, BPCL up by 1.53%, ONGC up by 1.52% and Adani Ports & SEZ up by 1.42%. On the flip side, Eicher Motors down by 1.88%, Power Grid down by 1.76%, Wipro down by 1.19%, Divi's Lab down by 1.10% and Ultratech Cement down by 1.07% were the top losers. 

Asian markets were trading mixed; Hang Seng advanced 148.44 points or 0.89% to 16,622.08, Straits Times rose 32.97 points or 1.02% to 3,231.07, Shanghai Composite strengthened 5.77 points or 0.19% to 3,032.08 and KOSPI increased 19.52 points or 0.71% to 2,757.09, while Taiwan Weighted lost 65.76 points or 0.33% to 20,126.49, Jakarta Composite plunged 26.4 points or 0.36% to 7,351.36 and Nikkei 225 slipped 16.09 points or 0.04% to 40,398.03.