The markets have reacted positively to the inflation data. With the food inflation index dropping to 9.67% vs 12.5% last week, the markets started recovering from day's lows. The Nifty is trading above 5400 mark, up four points at 5404 and the Sensex is up 22 points at 17,890. The midcap index down 0.4%, while the smallcap index is up 0.4% and both these indices continue to outperform the benchmark indices.
Siddharth Bhamre, head of derivatives from Angel Broking expects the Nifty to close in the negative today. The Nifty may dip to the level of 5360-5370 and Nifty futures could expire around 5400, according to him. He adds there will be some intra-day volatility and it is a good idea to buy into dips.
The recovery is led by gains in the PSU index, which is up 2% led by MMTC up 26.4%, NHPC, Gail, Corporation Bank & Bank of Baroda all up over 1%
Also FMCG index is up 0.5% led by gains in Hindustan Unilever up 3% and Tata Global up 2.4%
However Siddharth Bhamre says FMCG stocks like Dabur and HUL will see some selling pressure on
valuation concerns as results were slighly dissapointing.
And HDFC Bank and ICICI Bank up 0.4%, are the top stock gainers on the Sensex.
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Amongst the losers, Capital goods index down 0.6%, metal & oil gas down 0.5% and IT index down 0.3%
Lakshmi Machine down 2% at 2055, Suzlon down 1.6% at 58, Thermax down 1.5% at 746 are dragging the capital index down.
RIL, Aban Offshore, IOC all down almost 0.5% continue weighing on the oil & gas index
Also profit booking seen in Patni Computers down 4% at 461, Financial tech down 2%
at 1210 which is bringing the IT index down