Published on 14/08/2020 1:02:20 PM | Source: LKP Securities Ltd

Firm trade persists on Dalal Street - LKP Securities

Posted in Market Outlook| #Market Outlook #LKP Securities Ltd

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Firm trade persists on Dalal Street

Indian equity benchmarks continued to trade in green in afternoon session amid buying in blue chip stocks from across various sectors. Buying in metal, capital goods and healthcare stocks helped markets to trade higher. Traders’ mood remained optimistic as the wholesale price-based inflation declined 0.58 per cent in July, even as food items turned costlier. WPI inflation in June was at (-) 1.81 per cent, while for the month of May and April it was (-) 3.37 per cent and (-) 1.57 per cent respectively. However, fuel and power basket inflation fell 9.84 per cent in July, compared to 13.60 per cent in the previous month. Manufactured products, however, witnessed inflation of 0.51 per cent in July, as against 0.08 per cent in June. Meanwhile, RBI remained net purchaser of the US currency for the second consecutive month in June after it bought $9.814 billion of greenback on a net basis. During the reporting month, the RBI had bought $14.847 billion from the spot market while it sold $5.033 billion.

On the global front, Asian markets were trading mostly higher even as surprise fall in Chinese retail sales knocked Asia's emerging market stocks and currencies on Friday, on fading hopes the world's second-largest economy could make a swift recovery from its COVID-19 slump. Back on street, in scrip specific developments, Tata Steel gained even after reporting consolidated net loss of Rs 4,374 crore in Q1 and  Xchanging Solutions surged on reporting 60% rise in Q1 consolidated net profit.


The BSE Sensex is currently trading at 38487.08, up by 176.59 points or 0.46% after trading in a range of 38358.21 and 38540.57. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.64%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Metal up by 1.89%, Capital Goods up by 1.69%, Healthcare up by 1.45%, Industrials up by 1.23% and Basic Materials was up by 1.16%, while Auto down by 0.63% and Oil & Gas was down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.78%, Sun Pharma up by 2.28%, Larsen & Toubro up by 1.91%, Asian Paints up by 1.40% and NTPC was up by 1.38%. On the flip side, Maruti Suzuki down by 1.06%, HCL Tech down by 0.88%, Power Grid Corporation down by 0.62%, Axis Bank down by 0.59% and ONGC was down by 0.45% were the top losers.

Meanwhile, in order to guard domestic manufacturers from cheap imports, India has imposed anti-dumping duty on imports of black toner in powder form, used in printers and photocopiers, from China, Malaysia and Chinese Taipei (Taiwan) for six months. The duty was imposed following recommendation by Commerce Ministry's investigation arm Directorate General of Trade Remedies (DGTR). DGTR had in June recommended the duty after conducting a probe in alleged dumping of the product by certain companies from these countries, following a complaint by domestic manufacturers. The duty imposed is in the range of $196 per tonne to $1,686 per tonne.

Department of Revenue in a notification said the provisional anti-dumping duty imposed under this notification shall be effective for a period of six months (unless revoked, amended or superseded earlier). In its probe, the directorate had concluded that the product has been exported to India from these nations below its associated normal value, which resulted in dumping, in turn impacting the domestic industry. Through another notification, the department extended the duty on flax fabrics imported from China and Hong Kong for a period of three months.

According to global trade norms, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers. The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India. The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) regime.

The CNX Nifty is currently trading at 11354.25, up by 53.80 points or 0.48% after trading in a range of 11311.25 and 11361.40. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 3.01%, Coal India up by 2.52%, JSW Steel up by 2.38%, Sun Pharma up by 2.25% and Larsen & Toubro was up by 2.19%. On the flip side, Eicher Motors down by 4.03%, Maruti Suzuki down by 0.96%, Tata Motors down by 0.95%, HDFC Life Insurance down by 0.88% and HCL Tech down by 0.76% were the top losers.

Asian markets were mostly trading higher; Jakarta Composite soared 9.55 points or 0.18% to 5,248.80, Nikkei 225 surged 39.75 points or 0.17% to 23,289.36, Taiwan Weighted strengthened 32.33 points or 0.25% to 12,795.46, Shanghai Composite gained 22.93 points or 0.69% to 3,343.66, Straits Times advanced 0.87 points or 0.03% to 2,596.84 and Hang Seng was up by 127.45 points or 0.51% to 25,358.12. On the other hand; KOSPI was down by 30.04 points or 1.23% to 2,407.49.


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