Barometer gauges have capitulated slender gains
entering the afternoon trade post the release of the Weekly Food
Inflation which despite moderating to 9.55% for the week ended August 27
from 10.05% in the last week, sparked the fears that RBI may not bent
in fighting domestic inflation despite weakening global conditions.
Local bourses also tracing the mixed mood prevailing in the Asian equity
markets have succumbed to the selling pressure. Asian shares
surrendered early gains after worse-than-expected regional economic data
rekindled investor concerns over the uncertain growth outlook, with the
Australian dollar and Sydney stocks falling after a surprisingly weak
jobs report. Japan's core private-sector machinery orders in July fell a
seasonally adjusted 8.2 percent from the previous month for the first
fall in three months, with reconstruction demand in areas hit by the
March 11 earthquake and tsunami losing some steam, the government said
Thursday. However, after overnight gains of Wallstreet, the European
markets have got off to a positive start, while the US future indices
continue to show a downtick in the screen trade.
Back on Street, Index Heavyweight- Reliance Industries-which lost over a half a percent post the release of the CAG report mainly, yanked the bourses lower. In its report on RIL's KGD6 contract, the CAG stated that the company notified discoveries without details and declared entire contract area as discovery area. RIL was found guilty of non-relinquishment of area. CAG said that the Director General of Hydrocarbon should have stopped RIL from proceeding with phase 2. The report said that the Oil Ministry should have reviewed the determination of contract area. Further, it highlighted that RIL's development activities were not guided by initial development plan and hence, CAG asked the government to amend all future production sharing contracts.
Bears getting out of the slumber were active on the BSE Sectoral space, however, stocks from Oil & Gas, Metal and Fast Moving Consumer Goods featured in the worst performers on the Index, on the flip side, stocks from Information Technology, TECk and CG counters were capping the losses of the bourses. The 30 scrip sensitive index despite dropping over 50 points was still trading above the 17000 level, while the 50 share index losing over to 0.15% was trading above the 5100 mark. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1475:1017, while 103 shares remained unchanged.
The BSE Sensex is currently trading at 17,004.55, down by 60.45 points or 0.35%. The index has touched a high and low of 17,125.84 and 16,987.37 respectively. There were 12 stocks advancing against 18 declining one's on the index.
The broader indices were trading on mixed note; the BSE Mid cap index were down by 0.02% and Small cap index was trading up by 0.44%.
IT up by 1.49%, TECk up by 0.88%, CG up by 0.58%, HC up by 0.48% and CD up by 0.26% remained the top gaining sectoral indices on the BSE. While, Oil and Gas down 1.40%, Metal down by 0.95%, FMCG down by 0.58%,Bankex down by 0.49% and PSU down by 0.42% were the prominent losers on the index.
The top gainers on the Sensex were Wipro up by 3.16%, Infosys up by 1.82%, Sun Pharma up by 1.02% TCS up by 0.87% and L&T up by 0.65%.
Jaiprakash Associates down by 2.31%, Bajaj Auto down by 1.92%, Jindal Steel down by 1.70%, RIL down by 1.59% and HDFC Bank down by 1.58% were the top losers on the index.
Meanwhile, India's food inflation measured by Wholesale Price Index (WPI) has registered marginal decline. It moderated to 9.55% for the week ended August 27 from 10.05% in the last week. However, despite the moderation from last week, the food inflation still continues to hover above 9% for the fifth consecutive week.
As per the data released by Ministry of Commerce and Industry, the index for 'Food Articles' group rose by 0.1% to 195.1 (Provisional) from 195.0 (Provisional) for the previous week due to higher prices of poultry chicken (3%), moong (2%) and masur, urad, gram, bajra, arhar, fruits & vegetables, fish-inland and condiments & spices (1% each). However, the prices of fish-marine and tea (4% each), maize, pork and ragi (2% each) and barley (1%) declined.
The marginal decline in food inflation is in line to Finance Minister's expectation of moderation in food inflation. However, this half percent decline in food inflation is less likely to give any major relief to the government. The Reserve Bank of India which has increased its key policy rates for 11 times, since March 2011, may go for another hike in its mid-quarter monetary policy review, in view of as the headline inflation hovering near two digit mark.
The S&P CNX Nifty is currently trading at 5,115.25, down by 9.40 points or 0.18%. The index has touched a high and low of 5,140.70 and 5,098.25 respectively. There were 20 stocks advancing against 29 declining one's the index, whine 1 stock remained unchanged.
The top gainers of the Nifty were Ranbaxy up by 4.36%, Wipro up by 3.03%, Infosys up by 1.86%, Grasim Industries up by 1.44% and HCL Technologies up by 1.34%.
The top losers of the index were SAIL down by 2.63%, JP Associates down by 2.03%, Jindal Steel down by 1.78%, Bajaj Auto down by 1.73% and Sesa Goa down by 1.71%.
Weakness had slightly crept into the Asian equities; Jakarta Composite was up by 0.36%, KLSE Composite was up by 0.30%, Nikkei 225 was up by 0.34%, Seoul Composite was up by 0.72% and Taiwan Weighted was up by 0.26%.
On the flip side, Straits Times down by 0.10%, Shanghai Composite was down by 0.30% and Hang Seng which edged lower by 1.70% were the top losers in the Asian pack.
The European indices have got off to a green start, CAC 40 was up by 0.30%, DAX 30 was up by 0.15% and FTSE 100 has gained 0.18%.
Back on Street, Index Heavyweight- Reliance Industries-which lost over a half a percent post the release of the CAG report mainly, yanked the bourses lower. In its report on RIL's KGD6 contract, the CAG stated that the company notified discoveries without details and declared entire contract area as discovery area. RIL was found guilty of non-relinquishment of area. CAG said that the Director General of Hydrocarbon should have stopped RIL from proceeding with phase 2. The report said that the Oil Ministry should have reviewed the determination of contract area. Further, it highlighted that RIL's development activities were not guided by initial development plan and hence, CAG asked the government to amend all future production sharing contracts.
Bears getting out of the slumber were active on the BSE Sectoral space, however, stocks from Oil & Gas, Metal and Fast Moving Consumer Goods featured in the worst performers on the Index, on the flip side, stocks from Information Technology, TECk and CG counters were capping the losses of the bourses. The 30 scrip sensitive index despite dropping over 50 points was still trading above the 17000 level, while the 50 share index losing over to 0.15% was trading above the 5100 mark. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1475:1017, while 103 shares remained unchanged.
The BSE Sensex is currently trading at 17,004.55, down by 60.45 points or 0.35%. The index has touched a high and low of 17,125.84 and 16,987.37 respectively. There were 12 stocks advancing against 18 declining one's on the index.
The broader indices were trading on mixed note; the BSE Mid cap index were down by 0.02% and Small cap index was trading up by 0.44%.
IT up by 1.49%, TECk up by 0.88%, CG up by 0.58%, HC up by 0.48% and CD up by 0.26% remained the top gaining sectoral indices on the BSE. While, Oil and Gas down 1.40%, Metal down by 0.95%, FMCG down by 0.58%,Bankex down by 0.49% and PSU down by 0.42% were the prominent losers on the index.
The top gainers on the Sensex were Wipro up by 3.16%, Infosys up by 1.82%, Sun Pharma up by 1.02% TCS up by 0.87% and L&T up by 0.65%.
Jaiprakash Associates down by 2.31%, Bajaj Auto down by 1.92%, Jindal Steel down by 1.70%, RIL down by 1.59% and HDFC Bank down by 1.58% were the top losers on the index.
Meanwhile, India's food inflation measured by Wholesale Price Index (WPI) has registered marginal decline. It moderated to 9.55% for the week ended August 27 from 10.05% in the last week. However, despite the moderation from last week, the food inflation still continues to hover above 9% for the fifth consecutive week.
As per the data released by Ministry of Commerce and Industry, the index for 'Food Articles' group rose by 0.1% to 195.1 (Provisional) from 195.0 (Provisional) for the previous week due to higher prices of poultry chicken (3%), moong (2%) and masur, urad, gram, bajra, arhar, fruits & vegetables, fish-inland and condiments & spices (1% each). However, the prices of fish-marine and tea (4% each), maize, pork and ragi (2% each) and barley (1%) declined.
The
index for 'Non-Food Articles' group rose by 1.1% to 183.3
(Provisional) from 181.3 (Provisional) for the previous week due to
higher prices of flowers (9%), sunflower (5%), raw rubber (3%), fodder
and raw silk (2% each) and gaur seed, groundnut seed and raw cotton (1%
each). However, the prices of linseed (1%) declined. As a result, the
index for primary articles group which has the highest weightage of
20.12% in WPI rose by 0.2% to 201.4 (Provisional) from 200.9
(Provisional) for the previous week. The annual rate of inflation,
calculated on point to point basis, stood at 13.34% (Provisional) for
the week ended August 27 as compared to 12.93% (Provisional) for the
previous week August 20.
Meanwhile, the index for Fuel and Power group
which has the weightage of 14.91% in WPI, remained unchanged at their
previous week's level of 166.8 (Provisional) and 12.55 percent
(Provisional) for the week ended August 27. The marginal decline in food inflation is in line to Finance Minister's expectation of moderation in food inflation. However, this half percent decline in food inflation is less likely to give any major relief to the government. The Reserve Bank of India which has increased its key policy rates for 11 times, since March 2011, may go for another hike in its mid-quarter monetary policy review, in view of as the headline inflation hovering near two digit mark.
The S&P CNX Nifty is currently trading at 5,115.25, down by 9.40 points or 0.18%. The index has touched a high and low of 5,140.70 and 5,098.25 respectively. There were 20 stocks advancing against 29 declining one's the index, whine 1 stock remained unchanged.
The top gainers of the Nifty were Ranbaxy up by 4.36%, Wipro up by 3.03%, Infosys up by 1.86%, Grasim Industries up by 1.44% and HCL Technologies up by 1.34%.
The top losers of the index were SAIL down by 2.63%, JP Associates down by 2.03%, Jindal Steel down by 1.78%, Bajaj Auto down by 1.73% and Sesa Goa down by 1.71%.
Weakness had slightly crept into the Asian equities; Jakarta Composite was up by 0.36%, KLSE Composite was up by 0.30%, Nikkei 225 was up by 0.34%, Seoul Composite was up by 0.72% and Taiwan Weighted was up by 0.26%.
On the flip side, Straits Times down by 0.10%, Shanghai Composite was down by 0.30% and Hang Seng which edged lower by 1.70% were the top losers in the Asian pack.
The European indices have got off to a green start, CAC 40 was up by 0.30%, DAX 30 was up by 0.15% and FTSE 100 has gained 0.18%.
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