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Markets opened a cautious note this Monday as investors preferred to remain on the side-lines ahead of the September inflation data scheduled later today which will help determine the central bank’s monetary policy stance.
Inflation data for September, as measured by the wholesale price index (WPI) and the consumer price index (CPI), are due to be released today.
The Reserve Bank of India, in its Mid-Quarter Monetary Policy Review on September 20, increased a key policy rate, saying inflation had to be brought down to more tolerable levels. The RBI's next policy review is on October 29.
At 9:20AM, the 30-share Sensex fell 1.5 points to trade at 20,527 and the 50-share Nifty shed 6.6 points at 6,089.20 levels.
Meanwhile, global risk appetite was frail as investors look for clarity on US lawmakers extending the US debt ceiling before the October 17 deadline.
The broader markets traded higher with mid-caps and small-caps adding 0.1 per cent on the BSE.
The market breadth was positive. Out of 686 stocks traded, 446 stocks advanced while 201 stocks declined on the BSE.
RUPEE
Rupee lost some ground in today’s opening session ahead of the Thursday’s deadline for the US debt ceiling.
At 9:20AM, the partially convertible rupee was trading at 61.20 per dollar against the Friday’s close of 61.08 on the Interbank Foreign Exchange.
GLOBAL MARKETS
Asian stocks and US index futures fell, while the yen snapped a four-day slump as American lawmakers struggled to reach an accord on raising the nation’s debt limit and restoring government operations. Metals dropped after Chinese exports unexpectedly decreased.
China’s Shanghai Composite added 0.4% to 2,236 while Singapore’s Straits Times was down 0.6% to 3,159. Markets in Japan and Hong Kong are closed for holidays.
STOCK MOVERS
Domestically, the key sectoral gainers were healthcare, FMCG, bankex, PSU and capital goods while IT and auto indices dropped on the BSE.
The laggards were Hero MotoCorp shedding 0.3%, BHEL declined 0.3%, Infosys dropped 0.27% while Larsen & Toubro was down 0.2% on the BSE.
The gainers were Sun Pharma gaining 1.5%, HUL gained 0.8%, Tata Power added 0.7% while HDFC Bank was up 0.6% on the BSE.
