The markets continue to trade in a tight range,
though some strength is returning to markets after touching the lowest
point of the day in mid morning session. The realty and power sector
have strengthened further while, the IT index continue to remain in
negative terrain. Some bounce back in the Asian peers with strong demand
in Spanish and Italian debt sales that helped ease euro zone debt
worries, too have supported the market sentiments. Impact of
bigger-than-expected rebound in November industrial output was being
seen on the capital goods sector and Larsen & Toubro has gained over
2% along with other major JP Associates.
The broader indices are showing no sign of loosening up and are still outperforming the benchmarks with quite a margin. The BSE Mid cap index was up by 1.16% and the BSE Small cap index was up by 1.53%.
The BSE Sensex is currently trading at 16107.84, up by 70.33 points or 0.44% and has touched a high and a low of 16,168.99 and 16,049.78 respectively. There were 20 stocks advancing against 10 declines on the index.
The top gaining sectoral indices on the BSE were, Realty up by 2.70%, Power up by 1.83%, Capital Goods (CG) up by 1.71%, Metal up by 1.58%, PSU up by 1.45%.
On the flipside IT remains the lone laggard, down by 0.58%.
The top gainers of the BSE Sensex were, Coal India up by 3.79%, DLF up by 3.63%, Tata Power up by 3.44%, Tata Steel up by 2.68% and Bharti Airtel up by 2.62%.
On the other hand, Gail India down by 2.10%, TCS down by 1.13%, Hindalco Inds down by 1.06%, Infosys down by 0.76% and Bajaj Auto down by 0.54%.
At a time of debate whether the apex bank would reverse its monetary tightening, the Reserve Bank India (RBI) has said that it will consider the declining food prices while taking a view on the monetary policy, which comes up for review later in the month. RBI Deputy Governor Subir Gokarn said, 'the impact of food prices on (inflationary) expectations is certainly a factor that needs to be taken into account.'
Gokarn said, the role of food inflation is essentially on expectations, there is no direct link between monetary policy action and food prices, but prices of essential kitchen items do impact inflationary expectations in the economy.
Food prices fell for the second consecutive week as food inflation remained in the negative territory at (-) 2.90% for the week ended December 31, 2011. The fall in the rate of price rise of food items since the first week of November is considerable, as it has plunged from double-digit territory into the negative zone. However, the overall headline inflation in November was 9.11%, remaining above 9% mark since December 2010.Though, Chief Economic Advisor Kaushik Basu said he expects the WPI number to come down below 7.5% in December. Food inflation accounts for 15% in the overall inflation basket.
Gokarn said, 'increasing affluence is driving significant demand increases, and the fact that inflation or prices are rising quite sharply basically suggest that the supply response is relatively weak.' By adding further he said, food inflation, as a phenomenon is something to be treated as a persistent source of inflation, with pressure on prices and policy response to it naturally has to be driven in that perspective.
The RBI has hiked interest rates 13 times since March, 2010, to tame demand and curb inflation. In its second quarterly review of the monetary policy in December, the apex bank had said it expects inflation to remain elevated till December on account of the demand-supply mismatch before moderating to 7% by March, 2012. Further, the industry wants the RBI to trim down interest rates with a view to arresting slowdown and boosting industrial growth. The central bank is scheduled to come out with its third quarter policy review on January 24.
The S&P CNX Nifty was currently trading at 4,856.25, up by 25 points or 0.52% and has touched a high and low of 4,868.35 and 4,834.20 respectively. There were 36 stocks advancing against 14 declines on the index.
The Asian markets too were trying hard to return in green with only Shanghai Composite trading down by 0.96%, and Taiwan Weighted down by 0.06%.
On the other hand, Hang Seng was up by 0.52%, Jakarta Composite was up by 0.34%, Nikkei 225 surged by 1.36%, Straits Times gained 1.07% and Seoul Composite was up by 0.60%.
The broader indices are showing no sign of loosening up and are still outperforming the benchmarks with quite a margin. The BSE Mid cap index was up by 1.16% and the BSE Small cap index was up by 1.53%.
The BSE Sensex is currently trading at 16107.84, up by 70.33 points or 0.44% and has touched a high and a low of 16,168.99 and 16,049.78 respectively. There were 20 stocks advancing against 10 declines on the index.
The top gaining sectoral indices on the BSE were, Realty up by 2.70%, Power up by 1.83%, Capital Goods (CG) up by 1.71%, Metal up by 1.58%, PSU up by 1.45%.
On the flipside IT remains the lone laggard, down by 0.58%.
The top gainers of the BSE Sensex were, Coal India up by 3.79%, DLF up by 3.63%, Tata Power up by 3.44%, Tata Steel up by 2.68% and Bharti Airtel up by 2.62%.
On the other hand, Gail India down by 2.10%, TCS down by 1.13%, Hindalco Inds down by 1.06%, Infosys down by 0.76% and Bajaj Auto down by 0.54%.
At a time of debate whether the apex bank would reverse its monetary tightening, the Reserve Bank India (RBI) has said that it will consider the declining food prices while taking a view on the monetary policy, which comes up for review later in the month. RBI Deputy Governor Subir Gokarn said, 'the impact of food prices on (inflationary) expectations is certainly a factor that needs to be taken into account.'
Gokarn said, the role of food inflation is essentially on expectations, there is no direct link between monetary policy action and food prices, but prices of essential kitchen items do impact inflationary expectations in the economy.
Food prices fell for the second consecutive week as food inflation remained in the negative territory at (-) 2.90% for the week ended December 31, 2011. The fall in the rate of price rise of food items since the first week of November is considerable, as it has plunged from double-digit territory into the negative zone. However, the overall headline inflation in November was 9.11%, remaining above 9% mark since December 2010.Though, Chief Economic Advisor Kaushik Basu said he expects the WPI number to come down below 7.5% in December. Food inflation accounts for 15% in the overall inflation basket.
Gokarn said, 'increasing affluence is driving significant demand increases, and the fact that inflation or prices are rising quite sharply basically suggest that the supply response is relatively weak.' By adding further he said, food inflation, as a phenomenon is something to be treated as a persistent source of inflation, with pressure on prices and policy response to it naturally has to be driven in that perspective.
The RBI has hiked interest rates 13 times since March, 2010, to tame demand and curb inflation. In its second quarterly review of the monetary policy in December, the apex bank had said it expects inflation to remain elevated till December on account of the demand-supply mismatch before moderating to 7% by March, 2012. Further, the industry wants the RBI to trim down interest rates with a view to arresting slowdown and boosting industrial growth. The central bank is scheduled to come out with its third quarter policy review on January 24.
The S&P CNX Nifty was currently trading at 4,856.25, up by 25 points or 0.52% and has touched a high and low of 4,868.35 and 4,834.20 respectively. There were 36 stocks advancing against 14 declines on the index.
The
top gainers of the Nifty were RPower up by 4.45%, Coal India up by
3.93%, Tata Power up by 3.61%, DLF up by 3% and Tata Steel up by 2.78%.
On the other hand, Gail India was down by 1.96%,
Hindalco was down by 1.39%, Sesa Goa was down by 1.37%, HCL Technology
was down by 1.29% and HDFC was down by 0.94%. The Asian markets too were trying hard to return in green with only Shanghai Composite trading down by 0.96%, and Taiwan Weighted down by 0.06%.
On the other hand, Hang Seng was up by 0.52%, Jakarta Composite was up by 0.34%, Nikkei 225 surged by 1.36%, Straits Times gained 1.07% and Seoul Composite was up by 0.60%.
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