Graphic: Subrata Jana/Mint
Graphic: Subrata Jana/Mint

Market round up: DII holding in BSE 200 at all-time high

In other news, long-term anti-dumping duty to benefit steel firms; this could be the euro's best year in a decade

The shareholding of domestic institutional investors (DIIs) in BSE 200 firms touched an all-time high in the March quarter, according to a recent report by Motilal Oswal Securities Ltd. DII holding in BSE 200 companies ended the March quarter at 12.9%, up from 12.5% a year ago. DIIs, including mutual fund houses, have been key investors in the equity markets, as investments through systematic investment plans have seen a significant increase in the recent past. The S&P BSE 200 index comprises mostly large-cap stocks. It has surged 22% in the past one year, outperforming the 17% increase in the broad market. Foreign institutional investors’ (FIIs’) holding in BSE 200 stocks rose by 50 basis points to 23.6% over a year ago.

Long-term anti-dumping duty to benefit steel firms

The government’s decision to impose definitive anti-dumping duty (ADD) on hot-rolled steel and cold-rolled steel for five years will create a more stable operating environment for domestic steel companies, said a note by Icra Research Services. The definitive ADD will act as a floor under the landed cost of imported flat steel, protecting domestic companies even if international steel prices fall below a certain level. This will protect them from situations such as the one seen in fiscal year 2017 when Chinese hot-rolled coil exports fell to $270/tonne, leading to a surge in cheap imports.

This could be the euro’s best year in a decade

It was supposed to be a year of risk that could lead to a break up of the euro. It’s turning out to be the best year in a decade for the shared currency. The euro hit a six-month high against the dollar this week and is on track to be the top-performing currency in the Group-of-10 in the first half of the year. Defeat for anti-euro candidates in the Dutch and French elections, better-than-expected regional economic data and increasing fund inflows into eurozone equity markets are all making investors more confident on the outlook. Foreign investors have bought $7 billion of eurozone exchange-traded funds without a hedge on the currency since March, compared to only $900 million hedged, according to Morgan Stanley. The US bank’s “trade of the week" is to buy the euro against the yen. The euro has climbed more than 6% versus the greenback this year, set for its biggest annual increase since 2007.