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Markets ended higher, amid a volatile trading session, led by IT major Infosys and select financials ahead of November IIP and December CPI data to be released later today.
The 30-share Sensex provisionally ended up 135 points at 27,594 and the 50-share Nifty ended up 42 points at 8,327.
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(Updated at 2:45PM)
Benchmark indices have recovered and are trading higher led by FMCG, financial sand Infosys shares.
At 14.45, the 30-share Sensex is up 85 points at 27,543 and the 50-share Nifty has gained 28 points to trade at 8,318.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained by nearly 1%.
The market breadth in BSE remains firm with 1,579 shares advancing and 1,169 shares declining.
Government will release the data on CPI inflation for December 2014 and Industrial Production Data (IIP) for November 2014 after trading hours today.
After an unexpected contraction the previous month, India’s industrial production is likely to have seen a marginal improvement in November 2014. The index of industrial production (IIP) for the month are expected to show some recovery.
Further, foreign portfolio investors (FPI) sold shares worth a net Rs 297.99 crore on Friday, as per provisional data.
Meanwhile, the rupee is trading at 62.23 per dollar vs previous close of 62.31 for the fourth consecutive session ahead of the Index of Industrial production (IIP) and Consumer Price Index (CPI) data due later in the day.
GLOBAL MARKETS
The Nikkei rose for a third day on Friday on growing confidence in the U.S. economy and hopes of aggressive stimulus steps in Europe, while Fast Retailing Co rose after reporting strong quarterly profits.
The Nikkei advanced 0.2% to end at 17,197.73 after dipping into negative territory earlier. For the week, it dropped 1.5%. The broader Topix added 0.2% to 1,380.58, and the new JPX-Nikkei Index 400 gained 0.2% to 12,495.99.
Index-heavy Fast Retailing gained 0.8% and contributed a hefty 40 points to the benchmark Nikkei index after reporting strong first quarter profits.
The US dollar took a dip on Monday as Asian investors caught up with a benign payrolls report and the subsequent slide in Treasury yields, while oil prices showed no sign of escaping their downward spiral.
Share markets were mostly lower following a soft finish on Wall Street though sentiment was supported by speculation the Federal Reserve would be patient in tightening policy given the weakness of wages apparent in the jobs numbers.
SECTORS & STOCKS
BSE FMCG, Bankex, Capital Goods and IT indices have gained between 1-2%. However, BSE Metal and Oil & Gas indices are down 1-2%.
The main gainers on the Sensex are HUL, Infosys, Axis Bank, ICICI Bank, Dr Reddy’s Labs, L&T and SBI.
Shares of fast moving consumer goods (FMCG) major Hindustan Unilever (HUL) have rallied 4% to Rs 895, extending its past five-day’s gain, recording its sharpest rally in 20-months.
Infosys has gained around 2% after reporting strong Q3 results on Friday.
Financial shares are trading higher ahead of Dec CPI numbers. The consumer price index (CPI) moderated to 4.4% in November. But this was on the back of a high base of 11.2% in the same month last year, implying the decline should be viewed with caution.
Though the recent moderation in inflation has created room for a moderation in the policy rate, the Reserve Bank of India has so far resisted from doing so, saying the easing in inflation is transitory in nature and could reverse.
Tata Motors has gained marginally. Tata Motors owned Jaguar Land Rover (JLR), UK's premium luxury car manufacturer today announced that it plans to create 1,300 new jobs at its UK plant as it plans to add new Jaguar models to its product portfolio
On the losing side, Coal India has declined over 4.5%. Media reports suggest that the government is planning to reduce its stake in Coal India by 10%.
Bharti Airtel has shed over 2%. Media reports suggest that the Supreme Court today refused to grant a stay on proposed auction of spectrum allocated to Bharti Airtel.
Oil shares are under pressure on further decline in crude prices. RIL has lost 2% while ONGC and GAIL have declined 1% each. Reliance Industries Chairman Mukesh Ambani announced Rs 100,000 crore investments across businesses in the next 12-18 months and said India was on the path to become the world's fastest growing economy.
