Key equity indices firmed up once again in early afternoon trade after after India's wholesale price inflation eased in July. At 12:15 IST, the barometer index, the S&P BSE Sensex, was up 171.45 points or 0.46% at 37,816.35. The Nifty 50 index was up 63.35 points or 0.56% at 11,419.10. Buying support emerged on bargain hunting after two sessions of losses. Cement shares were in demand.
The annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 5.09% (provisional) for the month of July 2018 (over July 2017) as compared to 5.77% (provisional) for the previous month and 1.88% during the corresponding month of the previous year. The Ministry of Commerce & Industry unveiled the data during trading hours today, 14 August 2018.
Among secondary barometers, the BSE Mid-Cap index was up 0.15%. The BSE Small-Cap index was up 0.32%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1183 shares rose and 1226 shares fell. A total of 118 shares were unchanged.
Cement shares were in demand. UltraTech Cement (up 2.94%), Ambuja Cements (up 2.74%) and ACC (up 2.37%), edged higher.
Grasim Industries was up 0.48%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Most telecom shares declined. Tata Teleservices (Maharashtra) (down 1.73%), Idea Cellular (down 0.76%) and Bharti Airtel (down 0.72%), edged lower. MTNL (up 1.61%) and Reliance Communications (up 2.97%), edged higher.
Telecom tower infrastructure provider Bharti Infratel was down 1.68%.
On the macro front, the all-India general Consumer Price Index (CPI) inflation dipped to nine-month low of 4.17% in July 2018 (new base 2012=100), compared with 4.92% in June 2018. The CPI inflation figure for June 2018 is revised downwards to 4.9% from 5.0% reported earlier. The corresponding provisional inflation rate for rural area was 4.11% and urban area 4.32% in July 2018 as against 4.93% and 4.85% in June 2018. The data was announced after market hours yesterday, 13 August 2018.
Overseas, Asian shares were mixed as tremors from the collapse of the Turkish lira ebbed a little. Ahead, a barrage of economic data out of China is expected later in the day. US stocks settled with small losses Monday, with the S&P 500 and the Dow Jones Industrial Average down for a fourth straight session as the ongoing turmoil in Turkey dampened investors' appetite for riskier assets.
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