Markets ended today's session on a positive note on the back of better-than-expected July WPI inflation data. The Sensex provisionally closed at 17,731, up 98 points and the Nifty closed higher 31 points at 5,378.
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(Updated at 1430 hours)
Markets are trading on a firm note in the late noon deals led by oil & gas and banking stocks. The Sensex is up 103 points at 17,737 and the 50-share Nifty has advanced 36 points to 5,384.
Meanwhile, the European markets are trading higher as slightly better than expected performances by the German and French economies in the second quarter eased anxiety about wider euro zone data that are likely to show the bloc sliding back towards recession. The CAC, DAX and FTSE are trading higher by 0.5-0.8% each.
The Asian markets ended higher on the back of bargain hunting. Hang Seng advanced 210 points to 20,292, Nikkei jumped 45 points to 8,929 and the Taiwan Weighted closed at 7,479, up 43 points.
Back home, The WPI inflation for the month of July came in at 6.87% lower than the street expectation of 7.24%. The fuel group inflation came in at 5.98% versus 10.27% during the previous month. Food article inflation lowered to 10.06% compared to 10.81% and the primary article inflation was at 10.39% versus 10.46% on a month on month basis.
Banking stocks are witnessing renewed on the back of July inflation data, reviving hopes that the central bank might cut the key rates in the next policy review. ICICI Bank, State Bank of India, Axis Bank, Bank of Baroda, IDBI Bank, Punjab National Bank and Kotak Mahindra Bank are among the top banking gainers from the heavyweight space.
Among the other heavyweight stocks, Tata Motors, Tata Steel, ONGC, Coal India, reliance Industries, Jindal Steel, Larsen & Toubro, ITC, Mahindra & Mahindra, HUL and Infosys are also among the gainers.
On the other hand, Sun Pharma, Sterlite Industries, HDFC, Bajaj Auto, Hindalco, Hero MotoCorp and Cipla are among the losers.
The BSE oil & gas index is the top sectoral gainer, up 1.25% or 105 points at 8,468 levels. Bankex, PSU, metal, auto, capital goods and FMCG indices are also up 0.4-1% each.
At the same time, realty, healthcare and power indices are among the laggards on the sectoral front.
Indraprastha Gas Limited (IGL) has rallied 7% at Rs 277, extending its past two day’s 7% rally after the Supreme Court has refused to stay the order of the Delhi High Court in the case involving IGL and gas regulator.
The overall breadth is neutral as 1,344 stocks are advancing while 1,330 stocks are declining.
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