Nifty holds 7650, Sensex strong; Healthcare Global falls 20%

Moneycontrol Bureau10:40 am Buzzing: Shares of Nitco Tiles rallied 12.5 percent, Kajaria Ceramics 2.5 percent and Somany Ceramics 3.5 percent intraday after imposition of anti-dumping duty on vitrified tiles.

The government today has imposed USD 1.37 per square metre anti-dumping duty on all vitrified tiles from China, which is far lower than industry expectations.

Industry has expected anti-dumping duty at USD 3 per square metre.

Anti-dumping duty imposed on vitrified tiles is for next six months, says the government.10:20 am FII View: Sakthi Siva of Credit Suisse says while the slowing in China's return on equity (RoE) is well recognised and a key reason why MSCI China trades at a 27 percent discount on price-to-book versus RoE valuation model, she suspects most investors have not noticed a similar slide in India's RoE.

India's RoE has halved from its 2005 highs and its current level of 12.3 percent is similar to China's 12.2 percent, she adds.

According to her, even more striking is that the rate of slowing in RoE is remarkably similar in both countries recently. India's premium has once again risen to above 50 percent, Siva says, adding while history is not always an accurate guide, previous episodes were associated with underperformance.

"We retain our underweight on India," she says.Also read - ADB cuts India's growth forecast to 7.4% for 2016-1710:00 am Market Check

Equity benchmarks continued to hold early gains with the Sensex rising 193.42 points to 25093.88 and the Nifty climbing 60.95 points to 7657.95. Banks, FMCG, oil, auto and pharma stocks gained.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising more than 1 percent. The market breadth remained strong as more than three shares advanced for every share declining on BSE.

Shares of Healthcare Global Enterprises, the cancer-care network operator, started off trade on a negative note despite positive market trend. The stock listed at Rs 210.20 on National Stock Exchange, down 3.6 percent compared to issue price of Rs 218. It fell nearly 20 percent in early trade to hit day's low of Rs 175 after seeing a high of Rs 211.90.