Bourses trim some gains in late afternoon session

Indian equity markets trimmed some of their gains in late afternoon session. However, indices continued to trade in green as traders took support with private report that India is finalising its trade strategy with the United States as Donald Trump prepares to return to office as President. The government is consulting with industry to identify export priorities, referred to as ‘offensive asks’, while keeping all options open, including a potential mini-trade deal and a response to Trump’s anticipated trade retaliation. On the global front, Asian markets were trading mostly in green after the Federal Reserve's preferred inflation gauge came in below expectations, fueling hopes for more rate cuts by the U.S. Federal Reserve in 2025. European markets were trading lower amid worries over potential tariffs under the incoming Trump administration in the U.S.

The BSE Sensex is currently trading at 78503.90, up by 462.31 points or 0.59% after trading in a range of 78189.19 and 78918.12. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index gained 0.19%, while Small cap index was down by 0.43%.

The top gaining sectoral indices on the BSE were Realty up by 1.48%, Bankex up by 0.98%, Oil & Gas up by 0.98%, Metal up by 0.97% and Energy was up by 0.86%, while Telecom down by 0.25%, Healthcare down by 0.14% and Auto was down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.76%, Indusind Bank up by 1.56%, HDFC Bank up by 1.53%, Tech Mahindra up by 1.48% and Reliance Industries up by 1.30%. On the flip side, Zomato down by 2.38%, Maruti Suzuki down by 1.02%, Hindustan Unilever down by 0.55%, Asian Paints down by 0.30% and Tata Motors down by 0.30% were the top losers.

Meanwhile, India has initiated a probe into an alleged increase in imports of certain steel flat products into the country following a complaint from the Indian Steel Association. The Directorate General of Trade Remedies (DGTR), under the commerce ministry, has started the investigation into imports of 'Non-Alloy and Alloy Steel Flat Products', used in various industries, including fabrication, pipe making, construction, capital goods, auto, tractors, bicycles, and electrical panels.

According to the notification of the DGTR, the Indian Steel Association, on behalf of its members - ArcelorMittal Nippon Steel India, AMNS Khopoli, JSW Steel, JSW Steel Coated Products, Bhushan Power & Steel, Jindal Steel and Power, Steel Authority of India - has filed an application under the customs tariff Act, 1975. They have sought imposition of safeguard duty on imports of these products into India. The applicant has alleged that there is a recent, sudden, sharp and significant increase in the volume of imports, which has caused significant injury to the domestic industry in India.

It has also alleged that the imports have taken place to cause serious injury to the industry. They have sought imposition of safeguard duties to protect the domestic industry engaged in the production of like articles or directly competitive products from such serious injury and threat thereof being caused by the imports. The product under consideration of the probe includes hot rolled (HR) coils, sheets and plates; HR plate mill plates; cold rolled (CR) coils and sheets; metallic coated steel coils and sheets; and colour coated coils and sheets. On the basis of the duly substantiated application filed by the applicant, and having satisfied itself on the basis of evidence provided therein, the authority (DGTR) considers that there is sufficient prima facie evidence to justify the initiation of the investigation. 

As part of the investigation, the directorate would determine whether unforeseen developments have resulted in a sudden, sharp and significant increase in imports in recent periods, and whether such imports have caused serious injury or pose a threat of serious injury to the domestic industry. The applicant has requested for the imposition of provisional measures citing the existence of critical circumstances. It has asked to impose the duty for four years. For the purpose of the probe, it will consider the imports happened during October 2023 to September 2024. The authority will also examine data pertaining to 2021-24. Safeguard measures in the form of duty of quantitative restrictions are trade remedies available to the World Trade Organization member-countries. They are imposed to provide a level-playing field to domestic players in case of sudden and significant increase in imports of a product.

The CNX Nifty is currently trading at 23727.45, up by 139.95 points or 0.59% after trading in a range of 23647.20 and 23869.55. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Trent up by 2.55%, JSW Steel up by 1.92%, Hindalco up by 1.80%, ONGC up by 1.69% and ITC up by 1.60%. On the flip side, Hero MotoCorp down by 1.44%, Maruti Suzuki down by 1.05%, Dr. Reddy's Lab down by 0.72%, Hindustan Unilever down by 0.64% and HDFC Life Insurance down by 0.51% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 594.29 points or 2.57% to 23,104.54, Nikkei 225 surged 459.44 points or 1.17% to 39,161.34, Hang Seng advanced 162.43 points or 0.82% to 19,883.13, Jakarta Composite gained 89.72 points or 1.27% to 7,073.59, KOSPI increased 37.86 points or 1.55% to 2,442.01 and Straits Times was up by 35.52 points or 0.95% to 3,755.45. On the flip side, Shanghai Composite was down by 16.81 points or 0.5% to 3,351.26.

European markets were trading lower; UK’s FTSE 100 decreased 19.19 points or 0.24% to 8,065.42, France’s CAC fell 26.26 points or 0.36% to 7,248.22 and Germany’s DAX was down by 50.04 points or 0.25% to 19,834.71.