After relentless rally for last 7 days on the Nifty, there has been some nervousness now, with Nifty holding levels of 17000 after again hitting fresh highs in trade today. The markets have been gaining around give the positive GDP data that came in yesterday.
Nonetheless, there has been seen buoyancy in the paper company stocks, with Orient Paper leading the set of gainers from the pack. Other paper stocks including the likes of Ballarpur Industries, Andhra Paper, JK Paper, Pudumjee Paper, Sheshasayee Paper and Malu Paper are all trading with gains of over 1 per cent.
In mid August we saw paper stocks trending higher on account of government's policies wherein it will put in place a ban on single use plastic. Also, the gains have been propelled in the counter as raw material prices have declined.
As per the government released notification, manufacturing, import, stocking, distribution, sale and use of single use plastic like earbuds, plastic sticks, balloons, plastic flags, candy and ice cream sticks will be banned from July 1, 2022.
Also, the latest gains in the paper stocks is owing to the finance ministry notification which said to continue anti-dumping duty on uncoated paper. India imports uncoated paper imported from countries like Indonesia, Thailand, Korea and Singapore.