Indian benchmarks have sustained the strong momentum in the afternoon session as investors continue to trade with conviction and are piling up hefty positions not only in heavyweight stocks but across the broader markets. The second successive moderation in weekly inflation numbers for the week ended June 25 came as a huge respite for all the interest rate sensitive counters. RBI has hiked key interest rate 10 times since March 2010 to rein in the rampant inflationary pressure, as it has been floating over 9% which is way above the central bank's comfortable level. On the global front, though the Asian markets which exhibited mixed trends were unable to give any direction to the local bourses, however, positive opening of European counterparts supported local sentiments. Moreover, the local indices are currently trading around their intraday highs above the psychological 5,650 and 18,900 levels. The defensive FMCG and high beta real estate counters have gained maximum traction in the session so far and are trading with over 1.50% gains. Though there were no sectoral laggards in the space however, individual names like metal major Sterlite Industries and IT bellwether Wipro traded in the negative terrain with minor losses.
However, the broader markets surged in tandem with their larger peers this afternoon. The bourses garnered traction on good volumes of over Rs 0.50 lakh crore while the market breadth on BSE was strongly in favor of advances in the ratio of 1717:872 while 122 scrips remained unchanged.
The BSE Sensex is currently trading at 18,931.21 up by 204.24 points or 1.09% after trading as high as 18,971.95 and as low as 18,767.25. There were 28 stocks advancing against 2 declines on the index.
The broader indices were trading on a positive note; the BSE Mid cap and Small cap indices advanced by 0.86% and 1.15% respectively.
On the BSE sectoral space, FMCG up 1.67%, Realty up 1.51%, Metal up 1.26%, CD up 1.21% and Power up 1.16% were the major gainers, while there were no loser on the index.
The top gainers on the Sensex were Bharti Airtel up by 3.35%, Jindal Steel up by 2.46%, NTPC up by 2.46%, Hindalco up 2.33% and HUL up 2.20%.
On the flip side, Sterlite down by 0.61% and Wipro down by 0.05% were the only losers on the index.
The food inflation numbers have fallen for the second week in a row to 7.61 per cent for week ended June 25 from 7.78 per cent in the previous week. However, the Fuel & Power group index continuing its trend has edged higher. Further, advances in monsoon improves prospect of further decline, at least in food prices even as concerns over the headline inflation remain, due to rising global fuel and commodity prices.
According to the data released by Ministry of Commerce and Industry, the index for Food Articles group rose by 0.5% percent for the week-ended June 25, to 190.8 from 189.8 for the previous week due to higher prices of coffee (21%), mutton (6%), gram and fruits & vegetables (2% each) and jowar and masur (1% each). However, the prices of ragi (3%), tea (2%) and fish-marine, moong, condiments & spices, bajra, egg, urad and barley (1% each) declined.
The index for primary articles group which has the highest weightage of 20.12% in WPI rose by 0.2% for the week at 197.8 from 197.4for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 11.56 percent for the week as compared to 11.84 percent for the previous week.The index for 'Non-Food Articles' declined by 0.4% to 179.6 (Provisional) from 180.4 (Provisional) for the previous week due to lower prices of raw jute (12%), flowers (8%) and raw rubber (3%).
Meanwhile, the index for Fuel & Power group which carries a weightage of 14.91%, rose by 3.8 percent to 166.3 (Provisional) from 160.2 (Provisional) for the previous week due to higher prices of kerosene (18%), lpg (15%) and high speed diesel (9%). However, the prices of bitumen and furnace oil (4% each) and naphtha (3%) declined. The annual rate of inflation for this group, calculated on point to point basis, stood at 12.67 percent for the week ended June 25 as compared to 12.98 percent for the previous week.
India's central bank which has raised its key interest rate last month for the 10th time since March 2010 to combat sticky inflation, currently hovering above 9 percent, has signaled more increases to come even as growth in Asia's third-largest economy is slowing down. The S&P CNX Nifty is currently trading at 5,689.15, higher by 63.70 points or 1.13% after trading as high as 5,697.95 and as low as 5,632.95. There were 48 stocks advancing against 2 declines on the index.
The top gainers of the Nifty were Bharti Airtel up by 3.47%, Jindal Steel up by 2.35%, HUL up by 2.23%, Hindalco up by 2.09% and NTPC up by 2.08%.
Sterlite down by 0.76%and Wipro down 0.29% were the only losers on the index.
Asian markets are exhibiting mixed trends as Hang Seng added 0.43%, Jakarta Composite climb 0.77%, Straits Times increased 0.36% and Seoul Composite advanced 0.43%.
On the flipside, Shanghai Composite slipped 0.56%, KLSE Composite inched down 0.03%, Nikkei 225 shed 0.11%, and Taiwan Weighted declined 0.58%
The European markets have opened on a positive note as France's CAC 40 added 0.39%, Germany's DAX gained 0.46% and London's FTSE rose 0.27%
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