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Indian markets off day’s highs in early noon deals
Dec-27-2024

Indian equity benchmarks witnessed some correction in early afternoon deals, with both Sensex and Nifty coming off their intraday highs, amid mixed cues from other Asian markets along with selling at Metal and Oil & Gas counters. Traders remained cautious, as a report released by the Ministry of Statistics and Programme Implementation (MoSPI) stated that the number of new subscribers to the Employees' Provident Fund (EPF) scheme was at its lowest at 0.75 million in October in 2024-25. New subscribers to Employees State Insurance Corporation (ESIC) was the lowest at 1.29 million in the current financial year except for April. Adding some worries, the Reserve Bank of India (RBI) said that with the rise in digitisation it has seen an increased risk of cyber attacks, digital frauds, data breaches and operational failures. In its report on Trend and Progress of Banking in India, the regulator called upon banks, non-bank financial companies (NBFCs) and co-operative banks to strengthen their risk management standards.

On the global front, Asian markets were trading mixed, as Japan's industrial production decreased for the first time in three months in November. Industrial production fell a seasonally adjusted 2.3 percent month-on-month in November, reversing a 2.8 percent rise in October. On a yearly basis, the decline in industrial production was 2.8 percent versus a 1.4 percent rebound a month ago.

The BSE Sensex is currently trading at 78766.77, up by 294.29 points or 0.38% after trading in a range of 78598.55 and 79043.15. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell by 0.04%, while Small cap index was up by 0.09%.

The top gaining sectoral indices on the BSE were Auto up by 1.16%, Healthcare up by 0.48%, Consumer discretionary up by 0.45%, FMCG up by 0.41% and Telecom up by 0.32%, while Metal down by 0.56%, Oil & Gas down by 0.45%, Realty down by 0.40%, PSU down by 0.38% and Capital Goods down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.79%, Mahindra & Mahindra up by 2.47%, Tata Motors up by 1.90%, Bajaj Finance up by 1.59% and Bajaj Finserv up by 1.11%. On the flip side, Zomato down by 0.88%, HCL Tech. down by 0.70%, Tata Steel down by 0.57%, Larsen & Toubro down by 0.37% and TCS down by 0.28% were the top losers.

Meanwhile, the commerce ministry notification has said India has initiated a probe into alleged dumping of LNG fuel tanks from China following a complaint by a domestic player. The commerce ministry's investigation arm, Directorate General of Trade Remedies (DGTR), is probing the dumping of liquified natural gas (LNG) fuel tanks as imports are allegedly hurting the margins of the domestic industry. Inox India has filed an application seeking the imposition of anti-dumping duty, stating that the cheap imports are causing material injury to the domestic industry. The tanks are used to contain and carry methane gas in large vehicles such as trucks.

The DGTR in a notification said on the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by domestic industry about dumping of subject goods...the Authority, hereby, initiates an anti-dumping investigation. 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 these 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. Imports of these tanks stood at $93.6 million in 2023-24. It was $42.7 million during April-October this fiscal and it was $84.7 million in 2022-23.

The CNX Nifty is currently trading at 23846.40, up by 96.20 points or 0.41% after trading in a range of 23800.60 and 23938.85. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.82%, Mahindra & Mahindra up by 2.70%, Dr. Reddy's Lab up by 2.20%, Tata Motors up by 1.94% and Bajaj Auto up by 1.70%. On the flip side, Bharat Electronics down by 1.02%, Hindalco down by 0.97%, ONGC down by 0.96%, Coal India down by 0.72% and Hero MotoCorp down by 0.70% were the top losers.

Asian markets were trading mixed; Shanghai Composite strengthened 4.44 points or 0.13% to 3,402.52, Straits Times rose 3.16 points or 0.08% to 3,764.61, Nikkei 225 surged 713.1 points or 1.77% to 40,281.16 and Taiwan Weighted added 28.74 points or 0.12% to 23,275.68, while Hang Seng declined 19.14 points or 0.1% to 20,079.15, Jakarta Composite plunged 8.46 points or 0.12% to 7,057.29 and KOSPI dropped 24.90 points or 1.04% to 2,404.77.
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