Indian equity indices which looked to consolidate their position around sub 5,600 and 18,600 levels have managed to capitalize on the momentum and are trading with moderate gain in the afternoon session of trade. Sentiment got a boost after monthly inflations numbers for June came in at 9.44% against 9.06% in the previous month. Though the WPI index quickened in the month of June however, the numbers have come as a respite since economists had forecasted a gloomier picture and a sharper rise to 9.7% because of the recent hike in prices of petroleum products by the government. The interest rate sensitive counters like Real Estate and Banking have pulled the frontline indices beyond the psychological 5,600 and 18,650 levels. Hefty buying interests were also seen in Metal, Capital Goods and Consumer Durables pockets. On the other hand, the information technology counter is once again languishing in the negative territory ahead of bellwether TCS's first quarterly earnings announcement. The Auto counter too remained under some pressure after two wheeler major Bajaj Auto got punished post its lower than expected Q1 earnings announcement. On the global front, the Asian markets exhibited mixed trends while the European counterparts got off to a somber opening after Moody's Investors Service warned that US government bonds may lose the AAA credit rating that it has held since 1917.
However, the broader markets traded with a positive bias and were outperforming their larger peers since the start of trade. The bourses consolidated on good volumes while the market breadth on BSE was in favor of advances in the ratio of 1474:1048 while 114 scrips remained unchanged.
The BSE Sensex is currently trading at 18,650.26 up by 54.24 points or 0.29% after trading as high as 18,650.26 and as low as 18,449.23. There were 16 stocks advancing against 14 declines on the index.
The broader indices were trading with good gains; the BSE Mid cap index advanced 0.45% and Small cap rose by 0.29% respectively.
On the BSE sectoral space, Realty up 1.62%, Bankex up 0.72%, Metal up 0.54%, Consumer Durables up 0.52% and PSU up 0.18% were the major gainers, while IT down 1%, Teck down 0.76%, FMCG down 0.67%, Oil & Gas down 0.56% and Auto down 0.37 were the major losers on the index.
The top gainers on the Sensex were DLF up by 1.63%, Tata Motors up by 1.25%, Maruti up by 1.13%, ICICI Bank up 1.10% and Hindalco up 1.07%.
On the flip side, Bajaj Auto down by 2.36%, Infosys down 1.59%, R Com down 1.27%, ONGC down 1.22% and Hero Honda down by 1.15% were the major losers on the index.
Meanwhile, the annual rate of inflation, based on monthly WPI, stood at 9.44% for the month of June 2011 as compared to 9.06% seen in the previous month and 10.25% during the corresponding month of the previous year. Build up inflation in the financial year so far was 2.34% compared to a buildup of 2.57% in the corresponding period of the previous year.
The index for primary articles group rose by 2.8% to 197.5 from 192.1 for the previous month, the index for fuel and power group rose by 0.7% to 161.6 from 160.4 for the previous month while the index for manufactured products group rose by 0.1% to 137.3 from 137.2 for the previous month.
Though India's India's wholesale price index quickened in the month of June to 9.44% month on month, however, the numbers have come as a respite since economists had forecasted a gloomier picture and a sharper rise to 9.7% because of the recent hike in prices of petroleum products by the government.
Furthermore, halting two consecutive week's decline, India's annual inflation in the Food Articles group rose 8.31% in the week ended July 2 from 7.61% in the previous week.
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 July 2, to 191.7 from 190.8 for the previous week. The index for primary articles group which has the highest weightage of 20.12% in WPI declined by 0.1% for the week at 197.6 from 197.8 for the previous week.
The annual rate of inflation, calculated on point to point basis, stood at 11.58% for the week as compared to 11.56% for the previous week. The index for 'Non-Food Articles' declined by 2.1% to 175.8 (Provisional) from 179.6 (Provisional) for the previous week.
Meanwhile, the index for Fuel & Power group which carries a weightage of 14.91%, declined by 0.4 percent to 165.6 (Provisional) from 166.3 (Provisional) for the previous week. The annual rate of inflation in the Fuel & Power group slipped to 11.89% in the week under review from 12.67% in the week ended June 25.
India's central bank is expected to raise rates for the 11th time since March 2010 at its monetary policy review on July 26, to combat sticky inflation which stood above 9% in May. Meanwhile, traders are also watching out for June headline inflation data due later in the noon. The S&P CNX Nifty is currently trading at 5,607.80, higher by 22.35 points or 0.40% after trading as high as 5,608.15 and as low as 5,541.70. There were 29 stocks advancing against 21 declines on the index.
The top gainers of the Nifty were IDFC up by 3.72%, Ambuja Cement up by 2.52%, ACC up by 1.73%, Sesa Goa up by 1.69% and DLF up by 1.61%.
Bajaj Auto down by 2.64%, R Com down 1.37%, Infosys down 1.34%, GAIL down 1.24% and ITC down 1.23% were the major losers on the index.
Asian markets are exhibiting mixed trends as Hang Seng shed 0.36%, Jakarta Composite eased 0.06%, KLSE Composite fell 0.17%, Nikkei 225 slipped 0.27%Taiwan Weighted lower by 0.08%.
On the flipside, Shanghai Composite advanced by 0.42%, Straits Times added by 0.02% and Seoul Composite rose by 0.03%.
The European markets have opened on a bleak note as France's CAC 40 shed 1%, Germany's DAX dropped 0.65% and London's FTSE eased 0.81%
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