Local equities after opening in high spirits post the two day's holiday have almost doubled its gains despite daunting global set-up as pessimist investors shrugging the weekly food inflation data have grabbed equities ahead of the weekend. India's weekly food inflation, measured by Wholesale Price Index (WPI) has stood at 10.05% for the week ended August 20 up from 9.80% in the previous week. Resumption of buying by foreign funds coupled with the surge of the index heavyweights like that of Reliance Industries, Infosys, ICICI Bank, ITC and Larsen & Toubro has mainly heartened the sentiment at Dalal Street. On the global front, Asian equity indices are bleeding in red tailing pattern of trade at Wall Street. Wall Street's four-day rally grounded to a halt on Thursday as investors turned cautious ahead of a key labor market report expected to underscore fears the economy is headed for another recession. Meanwhile, US stock futures are showing a downtick in the screen trade. Back home, on the BSE sectoral front, stocks from Metal, Oil & Gas and Consumer Durable counters are supporting the outperformance of the Indian equity market, while stocks from Information Technologies, TECk and Capital Goods counters are capping the further upside of Dalal Street. The 30 scrip sensitive index on BSE-Sensex-have captured over 150 points and are currently trading over the 16800 level, while the broadly followed 50 share index -Nifty-also clutching in gains close to 50 points are currently trading over 5000 mark. The broader indices also drawing cues from the larger counterparts are ruling up over 0.20% each. The overall market breadth on BSE is in the favour of advances which have outpaced declines in the ratio of 1369: 786, while 75 shares remained unchanged.
The BSE Sensex is currently trading at 16,845.08, up by 168.33 points or 1.01%. The index has touched a high and low of 16,989.86 and 16,704.71 respectively. There were 25 stocks advancing against 5 declining one's the index.
The broader indices too gained some weight after flat start; the BSE Mid cap and Small cap indices rose 0.76% and 0.19% respectively.
The top gaining sectoral indices on the BSE were, Metal up by 2.29%, Oil & Gas up by 2.16%, CD up by 1.59%, Auto up by 1.43%, HC up by 1.34% and FMCG was up by 0.88%. While, IT down 0.86%, TECk down by 0.17%, CG down by 0.07% were the top losers on the index.
The top gainers on the Sensex were Sterlite Industries up by 3.61%, Jindal Steel up by 3.51%, RIL up by 3.02%, M&M up by 2.64% and Sun Pharma up by 2.45%. On the flip side, TCS down by 1.02%, Tata Power down by 0.87%, Infosys down by 0.86%, BHEL and Maruti Suzuki down by 0.78% were the top losers on the Sensex.
Meanwhile, India's weekly food inflation, measured by Wholesale Price Index (WPI), stood at 10.05% for the week ended August 20 up from 9.80% in the previous week. The surge in food inflation is due to the increase in prices of onion, fruits, vegetables and protein-based items. This hike in food inflation is expected to put more pressure on the government and the RBI. However, for the week ended on August 20, fuel price index moderated to 12.55% from 13.13% of last week.
As per the data released by Ministry of Commerce and Industry, the index for `Food Articles` group rose by 1.2% to 195.0 (Provisional) from 192.7 (Provisional) for the previous week due to higher prices of poultry chicken (5%), fruits and vegetables and fish-inland (3% each), ragi, jowar, egg and gram (2% each) and fish-marine, moong, pork and bajra (1% each). However, the prices of barley (1%) declined.
The index for 'Non-Food Articles' group remained unchanged at its previous week's level of 181.3 (Provisional). The items for which the index showed variations are raw cotton (+4%), coir fibre (+3%), groundnut seed, gingelly seed and fodder (+2% each) and raw silk (+1%). Flowers (-11%), sunflower (-4%), raw rubber and gaur seed (-3% each) and castor seed and soyabean (-2% each).
The index for `Minerals` group rose by 3.1% to 310.8 (Provisional) from 301.6 (Provisional) for the previous week due to higher prices of copper ore (34%), limestone (19%), zinc concentrate (18%), steatite (9%), dolomite and bauxite (7% each) and chromite (2%). However, the prices of magnesite (25%), barytes (22%) and sillimanite (10%) declined.
As a result, the index for primary articles group which has the highest weightage of 20.12% in WPI rose by 1.2% to 200.9 (Provisional) from 198.5 (Provisional) for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 12.93% (Provisional) for the week ended August 20 as compared to 12.40% (Provisional) for the previous week.
Meanwhile, the index for Fuel and Power group which has the weightage of 14.91% in WPI, declined by 0.2% to 166.8 (Provisional) from 167.2 (Provisional) for the previous week due to lower prices of light diesel oil (3%), aviation turbine fuel and naphta (2% each) and furnace oil (1%). However, the price of bitumen (1%) moved up.
The weekly food inflation has entered into double digit after the gap of five months, despite the anti inflationary stance adopted by the RBI. This surge in food inflation has increased concerns for the government. The finance minister Pranab Mukherjee has termed this surge as disturbing. He said 'Food inflation has gone up... This is really disturbing. We shall have to ensure and remove the supply constraints on food items.'
The S&P CNX Nifty is currently trading at 5,045.25, higher by 44.25 points or 0.88%. The index has touched a high and low of 5,113.70 and 5,006.90 respectively. There were 36 stocks advancing against 14 declining one's on the index.
The top gainers of the Nifty were Sterlite Industries up by 3.93%, Jindal Steel up by 3.475, Reliance Industries up by 2.95%, M&M up by 2.73% and Ambuja Cement up by 2.67%. On the flip side, HCL Tech down by 2.40%, TCS down by 1.32%, Tata Power down by 1.26%, Infosys down by 0.95% and IDFC down by 0.83% were the top losers on the index.
Most of the Asian equity indices were trading in the red; Shanghai Composite was down by 1.29% Hang Seng by 1.32%, Nikkei 225 was down by 0.80%, Straits Times was down by 0.47%, Seoul Composite was down by 0.56% and Taiwan Weighted was down by 0.17%
On the flip side, KLSE Composite up by 1.62% was the lone gainer amongst the Asian pack.
#4406, Lane V, New Madhopuri, Ludhiana-141008, Punjab (INDIA).
| To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0jIzsLJysrJw=  |
Posts
0 comments:
Post a Comment
Note: only a member of this blog may post a comment.