Benchmarks trade higher on EU Summit hopes

Key benchmark indices have resumed their northward journey after a moderate cut on Monday amid optimism that leaders from the region will be able to chalk out a wide-ranging plan to tackle the long-running credit crisis at a summit scheduled for December 9, 2011. European officials are reportedly discussing the possibility of significantly boosting the region’s ability to fight the debt crisis by operating two bailout funds instead of just one. Moreover, Germany and France have agreed on treaty changes to enable a tighter fiscal union among euro area members. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE’s -- Sensex -- and NSE’s -- Nifty -- to trade comfortably over their crucial 16,950 and 5,050 mark respectively. The ailing airline companies edged higher in the trade as finance ministry has approved a draft Cabinet note floated by the commerce and industry ministry allowing foreign fliers to acquire up to 26 percent stake in India’s aviation companies. However, the retail stocks were trading lower in the trade after much argument, ultimately the government is likely to dilute the initial reform steps and postpone implementation in full until at least next May and the decision is likely to be announced in an all party meet later in the day. The market breadth on the BSE was positive; there were 929 shares on the gaining side against 391 shares on the losing side while 43 shares remained unchanged.

The BSE Sensex opened at 16,830.04; about 25 points higher compared to its previous closing of 16,805.33, and has touched a high and a low of 16,986.64 and 16,781.62 respectively.

The index is currently trading at 16,986.64, up by 181.31 points or 1.08%. There were 28 stocks advancing against just 2 declines on the index.

The overall market breadth has made a strong start with 68.16% stocks advancing against 28.69% declines. The broader indices too were trading with some strength; the BSE Mid cap and Small cap indices surged 0.59% and 0.67% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.25%, Power up by 1.12%, Auto up by 1.08%, Bankex up by 0.95% and CG was up by 0.87%. While, there were no losers on the index.

The top gainers on the Sensex were Tata Power up by 3.29%, Jaiprakash Associates up by 1.89%, DLF up by 1.82%, Maruti Suzuki up by 1.57% and Hindalco was up by 1.50%.

On the flip side, Bharti Airtel was down by 0.49% and Coal India was down by 0.47% were the only losers on the Sensex.

Meanwhile, in order to protect the domestic market, India has imposed anti-dumping duty on cheap imports of opal glassware from China and the United Arab Emirates for five years. Opal glassware is milky white glass used in lighting fixtures and tableware.

The anti-dumping duty would be in the range of 41.6% to 110.17% of the landed cost of consignments from China, whereas on the import of opal glassware from UAE anti-dumping duty would be in range of 36.73% of the cost. 

The Department of Revenue said, ‘the anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty, that is, August 9, 2011, and shall be payable in Indian currency.’

The imposition of anti-dumping duty on the opal glassware came after the Directorate General of Anti-Dumping and Allied Duties (DGAD), a nodal agency under the commerce and industry ministry, recommended its charge following investigation.

In its investigation, the DGAD found that the domestic industry had suffered a material injury on account of dumping of the product by China and UAE. Earlier, in August 2011, the DGAD had imposed provisional anti-dumping duty on opal glassware from both the nations for six months.

Anti-dumping duty is imposed on suspiciously low-priced import, to increase their price in the importing country and so protect domestic industry from unfair competition. The imposition of anti-dumping duty is suggested by the commerce and industry ministry whereas the finance ministry imposes the same.

The S&P CNX Nifty opened at 5,050.10; about 11 points higher compared to its previous closing of 5,039.15, and has touched a high and a low of 5,088.10 and 5,032.25 respectively.

The index is currently trading at 5,086.15, higher by 47 points or 0.93%. There were 47 stocks advancing against just 3 declines on the index.

The top gainers of the Nifty were RCom up by 4.01%, Tata Power up by 3.13%, HCL Tech up by 2.52%, Cairn up by 1.90% and DLF up by 1.75%.

On the flip side, Coal India down by 0.54%, Bharti Airtel down by 0.50% and Cipla down by 0.02%, were the only losers on the index.

Most of the Asian markets were trading in the green; Shanghai Composite was up 2.23 points or 0.10% to 2,328.14, Hang Seng was up 175.30 points or 0.93% to 19,117.53, Jakarta Composite was up 3.39 points or 0.09% to 3,756.06, Nikkei 225 was up 88.20 points or 1.03% to 8,663.36, Straits Times was up 19.38 points or 0.70% to 2,768.62, Seoul Composite was up 14.96 points or 0.79% to 1,917.78 and Taiwan Weighted was up by 54.32 points or 0.78% to 7,010.60.

On the flip side, KLSE Composite was down by 4.88 points or 0.33% to 1,476.04.