Indian equities gained strength and pared most of
their losses, hovering just below the neutral line in the late afternoon
session. Investors started accumulating front line counters on back of
encouraging weekly inflation numbers which moderated substantially to
1.81% in the week ended December 10, as per the government data. In the
fight between bulls and bears to gain control over the market, bears
were seen continuing their rally but losing out momentum while marking
its run on the benchmarks. Traders were seen piling up position in
Realty, Bankex and FMCG sector while selling was witnessed in TECk, IT
and Metal sector.
DLF, Unitech, HDIL and DB Realty from Realty pack were seen trading firm in green pulling the markets higher. Axis Bank, HDFC Bank, SBI, PNB and ICICI Bank from Banking sector were trading with gain of around more than one percent to three percent helping market edge higher. ITC, HUL, Colgate Palmolive and Nestle from FMCG space was firm in green giving the much needed support. Tata Steel, Sterlite Industries, JSW Steel, Jindal Steel, NMDC and Hindustan Zinc from Metal counters were trading weak in red pulling the markets down. Infosys, TCS, Wipro, HCL Technologies, Tech Mahindra and Mphasis from IT space were weak in red after US-based Oracle Corporation's dismal quarterly results sent shock waves across the technology sector, exerting pressure on the market.
In the scrip specific development, telecom companies Bharti Airtel, Reliance Communication, Idea Cellular and TTML declined lower on reports that the Telecom Ministry has asked service providers to discontinue their 3G roaming agreements and is also contemplating imposing penalty on them. Monnet Ispat rose ahead of board meeting of the company scheduled for today, to consider a proposal for buyback of the company's own shares. Shares of sugar firms Bajaj Hindusthan, Balrampur Chini Mills, Shree Renuka Sugar, Dwarikesh Sugar Industries, Dhampur Sugar Mills and Simbhaoli Sugars were firm on reports that the government will consider the demand for partial decontrol of the sugar sector after winter session of parliament gets over.
On the global front, all Asian markets were seen trading in red while the European markets were trading in green on optimistic note. Even as the European Central Bank infused 489.19 billion euro into 523 financial institutions in Europe at ultra-low interests under its newly-activated three-year lending facility, uncertainty over how the banks will use the funds and also doubts over how much of the funds banks raised will actually flow into struggling euro zone economies, persisted among investors. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 4,700 and 15,700 levels, respectively. The market breadth on the BSE was in favor of declines in the ratio of 1143:1419 while 109 scrips remained unchanged.
The BSE Sensex is currently trading at 15,679.56 down by 5.65 points or 0.04% after trading as high as 15,692.25 and as low as 15,472.70. There were 18 stocks advancing against 12 declines on the index.
The broader indices were trading on a negative note; the BSE Mid cap index declined 0.05% while Small cap shed 0.14%.
On the BSE sectoral space, Realty up 1.33%, Bankex up 1.16%, FMCG up 0.71%, Consumer Durables up 0.67% and Auto up 0.53% were the top gainers while TECk down 1.62%, IT down 1.43% and Metal down 0.39% were the only losers in the space.
DLF up 2.97%, Tata Motors up 2.01%, HUL up 1.94%, ICICI Bank up 1.59% and SBI up 1.42% were the major gainers on the Sensex, while Bharti Airtel down 3.12%, Wipro down 2.61%, Infosys down 1.74%, Coal India down 1.44% and Jindal Steel down 1.04% were the major losers in the index.
Meanwhile, India's weekly food inflation, measured by the Wholesale Price Index (WPI), sliding for sixth successive week, cooled off to a nearly four-year low of 1.81% for the week ended December 10, its lowest rate since the week ended February 9, 2008, when it stood at 2.26%. The decline was mainly on the back of declining prices of essential items like vegetables, onion and potato. Food inflation was 4.35% in the previous week. It had stood at 13.22% in the corresponding week of 2010.
According to the data released by the Ministry of Commerce and Industry, the index for 'Food Articles' group declined by 0.5% to 191.0 (Provisional) from 191.9 (Provisional) for the previous week to lower prices of fruits and vegetables and condiments and spices (2% each) and ragi, tea and rice (1% each). However, the prices of jowar, gram and masur (2% each) and fish-inland, poultry chicken and fish-marine (1% each) moved up.
The index for 'Non-Food Articles' group declined by 0.6% to 177.4 (Provisional) from 178.4 (Provisional) for the previous week due to lower prices of flowers (13%), cotton seed (7%), sunflower (4%) and coir fibre, copra and gingelly seed (2% each). However, the prices of gaur seed (5 %), soyabean (4%), raw silk (2%) and linseed, raw rubber, castor seed, rape and mustard seed and groundnut seed (1% each) moved up.
As a result the index for 'Primary Articles' which accounts for 20.12% of the WPI declined by 0.2% to 197.7 (Provisional) from 198.1 (Provisional) for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 3.78% (Provisional) for the week ended December 10, 2011 as compared to 5.48% (Provisional) for the previous week ended December 3, 2011.
The S&P CNX Nifty is currently trading at 4,693.60, lower by 0.45 points or 0.01% after trading as high as 4,697.80 and as low as 4,632.95. There were 25 stocks advancing against 25 declines on the index.
The top gainers on the Nifty were DLF up 3.32%, PNB up 3.26%, Ranbaxy up 2.80%, Tata Motors up 2.06% and ICICI Bank up 1.80%.
Bharti Airtel down 3.12%, Sesa Goa down 2.84%, Wipro down 2.53%, Cairn India down 1.56% and Infosys down 1.52% were the major losers on the index.
Asian markets traded on a negative note, Shanghai Composite declined 0.22%, Hang Seng slipped 0.21%, Nikkei 225 dropped 0.77%, Jakarta Composite dropped 0.09%, Straits Times shed 0.26%, Seoul Composite eased 0.05% and Taiwan Weighted inched down 0.01%.
The European markets were trading in green with, France's CAC 40 added 1.17%, Germany's DAX jumped 1.33% and Britain's FTSE 100 gained 0.99%.
DLF, Unitech, HDIL and DB Realty from Realty pack were seen trading firm in green pulling the markets higher. Axis Bank, HDFC Bank, SBI, PNB and ICICI Bank from Banking sector were trading with gain of around more than one percent to three percent helping market edge higher. ITC, HUL, Colgate Palmolive and Nestle from FMCG space was firm in green giving the much needed support. Tata Steel, Sterlite Industries, JSW Steel, Jindal Steel, NMDC and Hindustan Zinc from Metal counters were trading weak in red pulling the markets down. Infosys, TCS, Wipro, HCL Technologies, Tech Mahindra and Mphasis from IT space were weak in red after US-based Oracle Corporation's dismal quarterly results sent shock waves across the technology sector, exerting pressure on the market.
In the scrip specific development, telecom companies Bharti Airtel, Reliance Communication, Idea Cellular and TTML declined lower on reports that the Telecom Ministry has asked service providers to discontinue their 3G roaming agreements and is also contemplating imposing penalty on them. Monnet Ispat rose ahead of board meeting of the company scheduled for today, to consider a proposal for buyback of the company's own shares. Shares of sugar firms Bajaj Hindusthan, Balrampur Chini Mills, Shree Renuka Sugar, Dwarikesh Sugar Industries, Dhampur Sugar Mills and Simbhaoli Sugars were firm on reports that the government will consider the demand for partial decontrol of the sugar sector after winter session of parliament gets over.
On the global front, all Asian markets were seen trading in red while the European markets were trading in green on optimistic note. Even as the European Central Bank infused 489.19 billion euro into 523 financial institutions in Europe at ultra-low interests under its newly-activated three-year lending facility, uncertainty over how the banks will use the funds and also doubts over how much of the funds banks raised will actually flow into struggling euro zone economies, persisted among investors. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 4,700 and 15,700 levels, respectively. The market breadth on the BSE was in favor of declines in the ratio of 1143:1419 while 109 scrips remained unchanged.
The BSE Sensex is currently trading at 15,679.56 down by 5.65 points or 0.04% after trading as high as 15,692.25 and as low as 15,472.70. There were 18 stocks advancing against 12 declines on the index.
The broader indices were trading on a negative note; the BSE Mid cap index declined 0.05% while Small cap shed 0.14%.
On the BSE sectoral space, Realty up 1.33%, Bankex up 1.16%, FMCG up 0.71%, Consumer Durables up 0.67% and Auto up 0.53% were the top gainers while TECk down 1.62%, IT down 1.43% and Metal down 0.39% were the only losers in the space.
DLF up 2.97%, Tata Motors up 2.01%, HUL up 1.94%, ICICI Bank up 1.59% and SBI up 1.42% were the major gainers on the Sensex, while Bharti Airtel down 3.12%, Wipro down 2.61%, Infosys down 1.74%, Coal India down 1.44% and Jindal Steel down 1.04% were the major losers in the index.
Meanwhile, India's weekly food inflation, measured by the Wholesale Price Index (WPI), sliding for sixth successive week, cooled off to a nearly four-year low of 1.81% for the week ended December 10, its lowest rate since the week ended February 9, 2008, when it stood at 2.26%. The decline was mainly on the back of declining prices of essential items like vegetables, onion and potato. Food inflation was 4.35% in the previous week. It had stood at 13.22% in the corresponding week of 2010.
According to the data released by the Ministry of Commerce and Industry, the index for 'Food Articles' group declined by 0.5% to 191.0 (Provisional) from 191.9 (Provisional) for the previous week to lower prices of fruits and vegetables and condiments and spices (2% each) and ragi, tea and rice (1% each). However, the prices of jowar, gram and masur (2% each) and fish-inland, poultry chicken and fish-marine (1% each) moved up.
The index for 'Non-Food Articles' group declined by 0.6% to 177.4 (Provisional) from 178.4 (Provisional) for the previous week due to lower prices of flowers (13%), cotton seed (7%), sunflower (4%) and coir fibre, copra and gingelly seed (2% each). However, the prices of gaur seed (5 %), soyabean (4%), raw silk (2%) and linseed, raw rubber, castor seed, rape and mustard seed and groundnut seed (1% each) moved up.
As a result the index for 'Primary Articles' which accounts for 20.12% of the WPI declined by 0.2% to 197.7 (Provisional) from 198.1 (Provisional) for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 3.78% (Provisional) for the week ended December 10, 2011 as compared to 5.48% (Provisional) for the previous week ended December 3, 2011.
Meanwhile,
the index and annual rate of inflation calculated on point to point
basis for 'Fuel and Power' group, which accounts for 14.91% of WPI,
remained unchanged at their previous week's level of 172.4 (Provisional)
and 15.24% (Provisional) for the week ended December 10, 2011.
The sharp fall in food inflation numbers, which
were in double-digit till the first week of November are seen as a big
relief to both the government and the Reserve Bank who have been
battling high prices for over two years. In a bid to rein inflation, RBI
has hiked key policy rates by 13 times since March 2010. However, this
time around, the RBI has kept policy rates on hold at its policy review
last Friday, sending a strong signal that its next move is likely to be
an easing of monetary policy as risks to growth increase. The S&P CNX Nifty is currently trading at 4,693.60, lower by 0.45 points or 0.01% after trading as high as 4,697.80 and as low as 4,632.95. There were 25 stocks advancing against 25 declines on the index.
The top gainers on the Nifty were DLF up 3.32%, PNB up 3.26%, Ranbaxy up 2.80%, Tata Motors up 2.06% and ICICI Bank up 1.80%.
Bharti Airtel down 3.12%, Sesa Goa down 2.84%, Wipro down 2.53%, Cairn India down 1.56% and Infosys down 1.52% were the major losers on the index.
Asian markets traded on a negative note, Shanghai Composite declined 0.22%, Hang Seng slipped 0.21%, Nikkei 225 dropped 0.77%, Jakarta Composite dropped 0.09%, Straits Times shed 0.26%, Seoul Composite eased 0.05% and Taiwan Weighted inched down 0.01%.
The European markets were trading in green with, France's CAC 40 added 1.17%, Germany's DAX jumped 1.33% and Britain's FTSE 100 gained 0.99%.
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