Sensex reclaims 28,000 after WPI contracts at 4.05%

Markets have gained momentum with Nifty touching the 8,500 levels after the wholesale prices fell at a faster-than-expected annual rate of 4.05% in July, their ninth straight decline and their lowest in at least a decade, mainly driven by weak food and fuel prices.

Also, China's central bank today raised the value of yuan against the US dollar by 0.05%, putting a stop to the 3-day fall in the currency.  

At 12:55 pm, the Sensex was up 471 points at 28,021 and the Nifty was up 149 points at 8,505.

As a result, investors stepped up buying in bluechips at attractive valuations after inflation eased raising hopes of a rate cut by the RBI.

 

A further decline in the crude oil prices has boosted the sentiments as it will help India in controlling the fiscal deficit.

The rupee has bounced back from the 65.34 mark, its weakest level since September 2013, after China strengthened yuan against the dollar. Rupee is currently trading 65.0 up 3 paise.

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(updated at 11:05 AM)

Markets continue its upward march with Nifty trading firm above the 8,400 level as investors stepped up buying in bluechips at attractive valuations after inflation eased, raising hopes of a rate cut by the RBI.

A further decline in the crude oil prices has boosted the sentiments as it will help India in controlling the fiscal deficit.

At 11.05 am, the 30-share Sensex was up 321 points at 27,871 and the 50-share Nifty was up 105 points at 8,461. In the broader market, the BSE Mid-cap index was up 1.7% and the Small-cap index was up 1.1%. Market breadth was strong with 1,397 gainers and 842 losers on the BSE.

Back home, the government will release data on inflation based on the wholesale price index (WPI) for July later today.

RUPEE

Extending its slide for the eighth straight day, the rupee shed another 24 paise to 65.34 against the dollar in early trade today, its weakest level since September 2013, on appreciation of the American currency against others overseas.

STOCK TRENDS

Telecom majors Bharti Airtel, Idea Cellular and Rcom are trading higher between 2-3% after the government permitted spectrum sharing between a move that could resolve the issue of call drops and improve efficiency in their respective telecom circles. 

Cipla and Hindalco are trading 2% and 0.2% higher ahead of the quarterly results due today.

A depreciating rupee has helped the export oriented sectors including pharma and IT to hold on to its gains. Sun Pharma, Cipla and Lupin from the healthcare pack and TCS and Infosys from the IT space are gaining between 0.2-2%.

Rate sensitives, banks, auto and realty continue the upward march on hopes of rate cut on the back of easing inflation numbers. HDFC twins, SBI, ICICI Bank, Bajaj Auto, M&M,  Maruti Suzuki and Hero Motocorp are trading higher between 0.3-1.5%.

Devaluation of yuan has casted its shadow on Tata Motors as it is going to affect the JLR sales. The stock is down 1%.

Coal India’s first-quarter revenues rose 6.5% year-on-year to Rs 18,955 crore while net profit fell 6.7% to Rs 3,764.35 crore. The stock is down 0.3%.

Jindal Steel & Power (JSPL) has dipped 4% to Rs 65.45, extending its 16% fall in past two trading sessions on the BSE, after the company reported a consolidated net loss in the third consecutive quarters.

Glenmark Pharmaceuticals has surged by 12% to Rs 1,184, also their record high on the National Stock Exchange (NSE)  on inclusion in the MSCI Emerging Markets Index from close of August 31, 2015.

Natco Pharma is up nearly 2% at Rs 2,325 on the Bombay Stock Exchange after the Foreign Investment Promotion Board (FIPB) approved both the company's foreign direct investment related proposals.

Realty major DLF is trading higher by 3% after the company posted a better than expected revenue of Rs 2,231 crore as against an expected amount of Rs 2,052 crore.