Bears on the prowl

Nifty50: 17,748 ▼-106 (0.6%)
Sensex: 59,667  ▼-410 (-0.6%)

The markets opened higher but couldn’t sustain and ended lower today. Out of the Nifty50 pack, 32 stocks declined. 

Among the Nifty sectoral indices, PSU Bank (+1.2%) and Metal (+0.5%) were top gainers. Whereas, Realty (-3.0%) and IT (-2.2%) declined the most.

For more updates on F&O, click here.

Here are the top stories of the day.

Maruti’s production expected to recover

India’s largest car maker, Maruti Suzuki, has reportedly asked its component suppliers to be equipped for production of 160,000-1,80,000 cars in October on the back of expected improvement in chipset supplies. If this target is met, the production would be around 60% to 80% higher on a month-on-month basis and just 5% lower than that of last year.

However, as per industry experts, these projections may have a downward bias of 15% to 20%. Meanwhile, there is strong investor interest in the shares of Maruti which ended flat in an otherwise weak market and have gained over 8% so far this month. 

GSFC rises on anti-dumping duty buzz

Shares of state-owned Gujarat State Fertilizer and Chemicals (GSFC) rose as the Indian government is likely to impose anti-dumping duty on import of caprolactam from the European Union, Korea, Russia and Thailand. The anti-dumping duty means an imposition of tariff on cheap imports from foreign nations to protect domestic manufacturing. 

It’s important to note here that GSFC is one of the two companies that produce caprolactam in India. Caprolactam is used in the making of nylon and resins. Shares of GFSC were up 3.1% today. Meanwhile, shares of another manufacturer Fertilizers & Chemicals Travancore, which recently restarted its production, were down 2.2%.

Raymond to embark on major reorganization

In order to unlock shareholder value, Maharashtra-based Raymond plans to consolidate its tools & hardware and auto components verticals into the engineering business for better synergies and monetisation options.

Further, to fast track the post-pandemic recovery, its board has decided to consolidate its apparel business into the parent Raymond Ltd. Finally, to achieve growth momentum in the real estate business, the company's real estate division will be a wholly-owned subsidiary. The shares of Raymond were up 1.5% today coupled with high volumes in an otherwise weak market.

Closing bell

It was a volatile session wherein markets witnessed profit booking for most part of the day but recovered from lower levels in the last hour of the trading session. Weak cues mainly from the European indices accentuated the selling pressure. Traders would be keen to see if the late recovery that was seen today sustains through this week. On the flip side, if today’s low is broken it would indicate further weakness.

Good to know

What is an anti-dumping duty? 

An anti-dumping duty is an imposition of tariff on cheap imported goods and raw materials by the domestic government. The government imposes anti-dumping duties because it believes that these imports aren’t priced at the market value and will end up hurting the domestic producers. However, some also believe that anti-dumping duties makes the market less efficient and competitive in the long-run. 

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