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Market turns volatile

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Last Updated : Jun 14 2016 | 12:47 PM IST

Volatility struck bourses in early afternoon trade as the key benchmark indices once again sink in negative zone after briefly turned positive from lower levels. At 12:23 IST, the barometer index, the S&P BSE Sensex was down 20.86 points or 0.08% at 26,375.91. The Nifty 50 index was currently down 10.10 points or 0.12% at 8,100.50. The volatility was triggered after the government announced the data for inflation based on wholesale price index (WPI) for May 2016.

The Sensex rose 88.68 points or 0.33% at the day's high of 26,485.45 at onset of the day's trading session. The index dropped 71.50 points or 0.27% at the day's low of 26,325.27 in morning trade. The Nifty rose 24.35 points or 0.3% at the day's high of 8,134.95 at onset of the day's trading session. The index fell 22.55 points or 0.27% at the day's high of 8,088.05 in morning trade.

In overseas markets, most Asian stocks declined following a lower finish in US stocks as investors looked ahead to central bank meetings in the US and Japan. The US Federal Open Market Committee will begin its two-day meeting today, 14 June 2016 while the Bank of Japan will start its two-day meeting tomorrow, 15 June 2016. US stocks declined yesterday, 13 June 2016 as investors turned increasingly jittery ahead of a Federal Reserve policy meeting and a looming vote on 23 June 2016 on Britain's membership in the European Union.

Closer home, the broad market depicted strength. There were almost two gainers for every loser on BSE. 1,512 shares gained and 762 shares declined. A total of 118 shares were unchanged. The BSE Mid-Cap index was currently up 0.34%. The BSE Small-Cap index was currently up 0.8%. Both these indices outperformed the Sensex.

Metal and mining stocks gained. Steel Authority of India (Sail) (up 1.59%), Vedanta (up 1.1%), JSW Steel (up 0.31%), Tata Steel (up 0.54%), Jindal Steel & Power (up 5.72%), Hindalco Industries (up 0.44%), NMDC (up 0.11%), Hindustan Copper (up 4.18%) and National Aluminium Company (up 0.06%) edged higher. Hindustan Zinc fell 0.23%.

Most auto stocks gained. Tata Motors (up 1.56%), Mahindra & Mahindra (M&M) (up 0.16%), Eicher Motors (up 0.87%), Ashok Leyland (up 0.19%) and TVS Motor Company (up 0.75%) rose. Hero MotoCorp (down 0.96%), Bajaj Auto (down 0.99%) and Maruti Suzuki India (down 0.04%) fell.

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On the macro front, data released by government today, 14 June 2016 showed that the inflation based on wholesale price index (WPI) rose 0.79% in May, after rising 0.34% in April. Meanwhile, March WPI inflation has been revised to -0.45% from -0.85%.

Meanwhile, data released by the government after market hours yesterday, 13 June 2016 showed that the all-India general consumer prices index (CPI) inflation increased to 21-months high of 5.76% in May 2016 (new base 2012=100), while recording rise for second straight month. The CPI inflation had stood at 5.47% in April 2016. The corresponding provisional inflation rate for rural area was 6.45% and urban area 4.89% in May 2016 as against 6.17% and 4.68% in April 2016. However, the core CPI inflation declined to 4.49% in May 2016 from 4.71% in April 2016.

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First Published: Jun 14 2016 | 12:28 PM IST

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