Bourses trade flat in late afternoon session

Indian equity markets traded flat in late afternoon session. Losses were limited with report that Reserve Bank of India’s (RBI) new Governor, Sanjay Malhotra, expressed optimism about India’s economic prospects for 2025. Malhotra stated robust consumer and business confidence as pivotal drivers of the country’s economic progress. Besides, Reserve Bank of India has said that asset quality of banks improved further and their gross non-performing assets (NPAs) or bad loans ratio declined to a 12-year low of 2.6 per cent in September 2024 on the back of falling slippages and steady credit demand. On the global front, Asian markets were trading mostly in red in thin holiday trade on Tuesday. Volumes were light amid holidays in Japan and South Korea. South Korea was closed for New Year's Eve holiday, while Japanese markets remain closed from Tuesday through Jan. 6. European markets were trading in green ahead of the New Year holiday.

The BSE Sensex is currently trading at 78115.77, down by 132.36 points or 0.17% after trading in a range of 77560.79 and 78305.34. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.15%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.38%, Industrials up by 1.09%, PSU up by 0.96%, Metal up by 0.87% and Oil & Gas was up by 0.85%, while IT down by 1.36%, TECK down by 1.05%, Realty down by 0.41% and Utilities was down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.50%, ITC up by 0.97%, Tata Motors up by 0.93%, SBI up by 0.84% and Tata Steel up by 0.84%. On the flip side, Tech Mahindra down by 2.37%, TCS down by 1.59%, Infosys down by 1.42%, Bajaj Finance down by 1.05% and Zomato down by 0.99% were the top losers.

Meanwhile, with an aim to guard domestic manufacturers from the increase in imports that are subsidised by Vietnam, the government has initiated a countervailing duty probe into increased imports of a chemical - Calcium Carbonate Filler Masterbatch - used in the plastic industry, from Vietnam following a complaint from domestic players. 

The investigation has been initiated by the Directorate General of Trade Remedies (DGTR), an arm of the Commerce Ministry. Compounds and Masterbatch Manufacturers Association of India and Masterbatch Manufacturers Association have filed a petition before the directorate on behalf of the domestic industry for initiation of the probe on the chemical exported from Vietnam into India.

The DGTR in a notification has said that the applicants have alleged that the product is being imported into India from Vietnam at subsidized prices in significant quantities for a prolonged period, causing material injury to it. They have requested for imposition of countervailing duty on these imports.

In the investigations, the DGTR would determine the degree and effect of any alleged subsidization in respect of the product and to recommend the amount of duty, which if levied, would be adequate to remove the injury to the domestic industry. Countervailing duty is a country-specific duty, which is imposed to safeguard domestic industry against unfair trade subsidies provided by the local governments of the exporting nations.

The CNX Nifty is currently trading at 23640.85, down by 4.05 points or 0.02% after trading in a range of 23460.45 and 23689.85. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 2.95%, ONGC up by 2.69%, Kotak Mahindra Bank up by 2.65%, Trent up by 2.12% and Coal India up by 1.30%. On the flip side, Adani Enterprises down by 2.56%, Tech Mahindra down by 1.94%, TCS down by 1.61%, Infosys down by 1.42% and Bajaj Finance down by 1.00% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 155.1 points or 0.67% to 23,035.10, Shanghai Composite weakened 55.57 points or 1.66% to 3,351.76 and Straits Times was down by 8.13 points or 0.21% to 3,787.60. On the flip side, Hang Seng advanced 18.53 points or 0.09% to 20,059.95 and Jakarta Composite was up by 43.33 points or 0.62% to 7,079.90.

European markets were trading in green; UK’s FTSE 100 increased 3.66 points or 0.05% to 8,124.67 and France’s CAC was up by 3.57 points or 0.05% to 7,317.13.