A bout of volatility was seen in early afternoon trade as the key benchmark indices hit fresh intraday high after reversing intraday losses. At 12:15 IST, the barometer index, the S&P BSE Sensex was up 53.41 points or 0.19% at 27,868.59. The Nifty 50 index was currently up 18.30 points or 0.21% at 8,537.80. The volatility on the bourses was triggered after the government today, 14 July 2016 released the inflation data based on wholesale price index (WPI) for June 2016.
The Sensex gained 62.44 points or 0.22% at the day's high of 27,877.62 in early afternoon trade. The barometer index fell 52.03 points or 0.19% at the day's low of 27,763.15 in morning trade. The Nifty gained 21 points or 0.25% at the day's high of 8,540.50 in early afternoon trade. The index fell 18.80 points or 0.22% at the day's low of 8,500.70 in morning trade.
In overseas stock markets, most Asian markets were trading higher ahead of Bank of England's interest rate decision later in the global day. In US stocks, the S&P 500 and Dow Jones Industrial Average scored meager gains yesterday, 13 July 2016 but enough to extend their run into record territory and advance for a fourth session in a row. However, the tech-heavy Nasdaq Composite index took a breather following a five-session climb to end lower. Stocks got a slight bump from the US Fed's beige book report released yesterday, 13 July 2016 which indicated that the US economy is holding steady although consumption may be softening. The beige book is an anecdotal survey of economic conditions in the US compiled by the Fed's regional banks.
The Bank of England meets later in the global day today, 14 July 2016, and expectations are that it will lower its benchmark lending rate by a quarter of a percentage point to 0.25% to counter the fallout from the Brexit vote. In the UK, Theresa May became the country's prime minister after former leader David Cameron tendered his resignation to the Queen.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,438 shares rose and 949 shares declined. A total of 135 shares were unchanged. The BSE Mid-Cap index was currently up 0.21%. The BSE Small-Cap index was currently up 0.63%. Both these indices outperformed the Sensex.
IT stocks saw mixed trend. Wipro (down 0.58%), Oracle Financial Services Software (down 0.45%) and MphasiS (down 0.32%) fell. HCL Technologies (up 0.71%), Tech Mahindra (up 1.35%) and Hexaware Technologies (up 2.62%) rose.
Index heavyweight and software major Infosys fell 0.91% to Rs 1,182.35. The stock hit high of Rs 1,195.05 and low of Rs 1,180.05 so far during the day. Infosys is scheduled to announce its Q1 June 2016 results tomorrow, 15 July 2016.
Shares of IT major Tata Consultancy Services (TCS) were up 0.29% ahead of its Q1 June 2016 results today, 14 July 2016.
Telecom stocks rose. Bharti Airtel (up 0.94%), Idea Cellular (up 0.84%), MTNL (up 0.87%) and Reliance Communications (up 0.99%) rose. Tata Teleservices (Maharashtra) fell 0.71%.
Shares of Bharti Infratel rose 0.55%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
On the macro front, data released by the government today, 14 July 2016 showed that the inflation based on wholesale price index (WPI), stood at 1.62% (provisional) in June 2016 as compared to 0.79% (provisional) in May 2016 and -2.13% in June 2015. Build up inflation rate in the financial year so far was 3.82% compared to a build up rate of 1.70% in the corresponding period of the previous year.
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