 "Markets turn flat post Sept WPI inflation")
Benchmark indices have lost ground and turned flat after the announcement of Sept WPI inflation which has come in at 6.46%.
WPI inflation for September came in higher at 6.46% today. July WPI inflation was revised to 5.85% vs 5.79%.
At 12:10 PM, the 30-share Sensex was flat at 20,523 and the 50-share Nifty slipped 6 points at 6,089 levels.
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Update at 11:07
Benchmark indices continue to remain positive in a tight range led by IT and banking shares.
At 11:10 AM, the 30-share Sensex rose 74 points to trade at 20,603 and the 50-share Nifty gained 19 points at 6,115 levels.
According to Ravi Nathani, Technical analyst at Nsetoday.com, “Nifty Index has strong resistance around 6143. Trade above this level would add fresh buying whereas next resistance on charts could be expected around 6160 & 6190.”
Data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September is due today.
On the global front, Asian shares and U.S. stock index futures fell and the safe-haven yen rose on Monday as a possible U.S. debt default edged closer after the failure of weekend talks in Washington, though expectations are that a last-minute compromise will be reached.
Adding to the gloom, data showed China's export growth unexpectedly fizzled in September, underscoring worries about flagging global demand, and annual consumer inflation quickened to a seven-month high.
MSCI's broadest index of Asia-Pacific shares outside Japan, which had hit a three-week high on Friday on hopes a U.S. deal was imminent, dropped 0.3 percent and China's CSI300 index slipped 0.2 percent.
Markets in Japan and Hong Kong are closed on Monday for public holidays.
Back home, the rupee weakened today ahead of the inflation data and dollar demand from importers in early trades.
At 10:50 am, the rupee was trading at Rs 61.26 compared with previous close of Rs 61.08 per dollar.
On the sectoral front, BSE IT and TECk indices have gained by over 1% each. Sectors like Banks, Consumer Durables, Capital Goods, Auto, Healthcare, PSU and Oil & Gas have gained marginally. However, BSE Metal index has declined by nearly 1%.
From the IT space, Wipro is trading higher by nearly 4% on reports that the information technology (IT) company is in race for Rs 1,500 crore India Posts devices project. Infosys and TCS have gained between 1-2%.
Shares of mid-and-small sized banks such has Karnataka Bank, Lakshmi Vilas Bank, South Indian Bank, Dhanlaxmi Bank, Development Credit Bank and Karur Vysya Bank have rallied up to 20% on back of heavy volumes on the bourses.
Most of these banks were underperformed the market by falling more than 30% in past three months in wake of Reserve Bank of India measures.
After having opened flat, the stock of Reliance Industries (RIL) has seen a rise of about 0.73% on Monday, ahead of its second quarter earnings announcement
Other notable gainers are Dr Reddy’s Lab, Coal India, L&T, Maruti Suzuki and SBI.
On the losing side, Hindalco, BHEL, Tata Steel, Jindal Steel and HDFC have declined between 1-3%.
TTK Prestige has dipped nearly 5% at Rs 3,314 after reporting a flat net profit of Rs 30.30 crore for the second quarter of financial year 2013-14 compared with Rs 30.28 crore in the same period last year.
Shares of Wockhardt today dropped 5% after UK’s medicines regulator withdrew its certification to its unit, which generated annual revenues of GBP 12 million (about Rs 117 crore).
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up nearly 1%.
The market breadth in BSE remains firm with 991 shares advancing and 632 shares declining.
WPI inflation for September came in higher at 6.46% today. July WPI inflation was revised to 5.85% vs 5.79%.
At 12:10 PM, the 30-share Sensex was flat at 20,523 and the 50-share Nifty slipped 6 points at 6,089 levels.
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Update at 11:07
Benchmark indices continue to remain positive in a tight range led by IT and banking shares.
At 11:10 AM, the 30-share Sensex rose 74 points to trade at 20,603 and the 50-share Nifty gained 19 points at 6,115 levels.
According to Ravi Nathani, Technical analyst at Nsetoday.com, “Nifty Index has strong resistance around 6143. Trade above this level would add fresh buying whereas next resistance on charts could be expected around 6160 & 6190.”
Data on inflation based on the wholesale price index (WPI) and the consumer price index (CPI), both, for September is due today.
On the global front, Asian shares and U.S. stock index futures fell and the safe-haven yen rose on Monday as a possible U.S. debt default edged closer after the failure of weekend talks in Washington, though expectations are that a last-minute compromise will be reached.
Adding to the gloom, data showed China's export growth unexpectedly fizzled in September, underscoring worries about flagging global demand, and annual consumer inflation quickened to a seven-month high.
MSCI's broadest index of Asia-Pacific shares outside Japan, which had hit a three-week high on Friday on hopes a U.S. deal was imminent, dropped 0.3 percent and China's CSI300 index slipped 0.2 percent.
Markets in Japan and Hong Kong are closed on Monday for public holidays.
Back home, the rupee weakened today ahead of the inflation data and dollar demand from importers in early trades.
At 10:50 am, the rupee was trading at Rs 61.26 compared with previous close of Rs 61.08 per dollar.
On the sectoral front, BSE IT and TECk indices have gained by over 1% each. Sectors like Banks, Consumer Durables, Capital Goods, Auto, Healthcare, PSU and Oil & Gas have gained marginally. However, BSE Metal index has declined by nearly 1%.
From the IT space, Wipro is trading higher by nearly 4% on reports that the information technology (IT) company is in race for Rs 1,500 crore India Posts devices project. Infosys and TCS have gained between 1-2%.
Shares of mid-and-small sized banks such has Karnataka Bank, Lakshmi Vilas Bank, South Indian Bank, Dhanlaxmi Bank, Development Credit Bank and Karur Vysya Bank have rallied up to 20% on back of heavy volumes on the bourses.
Most of these banks were underperformed the market by falling more than 30% in past three months in wake of Reserve Bank of India measures.
After having opened flat, the stock of Reliance Industries (RIL) has seen a rise of about 0.73% on Monday, ahead of its second quarter earnings announcement
Other notable gainers are Dr Reddy’s Lab, Coal India, L&T, Maruti Suzuki and SBI.
On the losing side, Hindalco, BHEL, Tata Steel, Jindal Steel and HDFC have declined between 1-3%.
TTK Prestige has dipped nearly 5% at Rs 3,314 after reporting a flat net profit of Rs 30.30 crore for the second quarter of financial year 2013-14 compared with Rs 30.28 crore in the same period last year.
Shares of Wockhardt today dropped 5% after UK’s medicines regulator withdrew its certification to its unit, which generated annual revenues of GBP 12 million (about Rs 117 crore).
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up nearly 1%.
The market breadth in BSE remains firm with 991 shares advancing and 632 shares declining.