Tag: BSE Sensex

Monday’s session largely turned out to be disappointing for Dalal Street, which for four straight sessions in row registered losses on the back of heavy drubbing in select blue chip stocks, like ITC, HUL and Infosys that arrested any kind of uptrend at the start of F&O expiry week. Among the blue-chip stocks, ITC collapsed close to 6% on worries the government may raise taxes on cigarettes aggressively in the upcoming budget in July, Infosys was beaten down by close to 3%. Nevertheless, buying witnessed in last hour of trade minimized some losses on the bourses. By close of trade, while Sensex managed to shut-shop above the crucial 25,000 mark, with loss of over quarter of a percent, Nifty just ended shy off the psychological 7,500 level. However, broader indices outperformed larger peers with fat margins to end with gains of over 0.50%-0.65%. Nevertheless, prevailing positive sentiment after a steep hike in railway passenger and freight fares, which was seen as possibly the first installment of the “tough measures” Prime Minister Narendra Modi had hinted at as necessary to revive the Indian economy, prevented any sharp slide.

On the global front, erasing early gains, Asia pacific shares ended mostly in green. These shares were up in early deals on upbeat news from China’s factory sector which fuelled appetite for riskier assets mainly arrested. HSBC/Markit’s preliminary Chinese manufacturing survey reached a seven-month high of 50.8 for June, exceeding the 49.7 street and a final reading of 49.4 in May. Additionally, European shares fell early on Monday as downbeat readings of euro zone business activity revived worries over the pace of the economic recovery in the single currency bloc. Dampening expectations for a rebound in the euro zone’s second-biggest economy, data compiler Markit said its composite purchasing managers index (PMI) of activity in France’s manufacturing and services sectors slipped deeper into contraction territory in May.

Closer home, majority of the sectoral indices on BSE settled into positive territory despite sluggish session of performance. However, stocks from Fast Moving Consumer Goods, Information Technology and Consumer Durables counters turned out to be exceptions. On the flip side, stocks from PSU, Oil & Gas and Metal counters were the top gainers of the session. Metal shares gained on hopes of better demand after a preliminary HSBC survey showed activity in China’s factory sector expanded in June for the first time in six months as new orders surged. In non-sectoral guage activity, sugar stocks were flavour of the session, with all stocks from Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engineering and Industries, Dhampur Sugar Mills and Oudh Sugar Mills registering gains of over 10% in otherwise subdued market after the government announced various measures to help the sector. In a sweet development for the sector, agriculture Minster Ram Vilas Paswan said the import duty on sugar has been increased to 40 per cent from 15 per cent earlier. He also underscored that the government will increase ethanol blending with petrol to 10 per cent from current 5 per cent.

Meanwhile, In a bitter medicine, which was necessitated to set right the faltering finances of the railways that were aggravated by UPA’s mismanagement of the economy, Modi led government approved a steep hike in the train fares and freight rates. With this, fares of all classes would be hiked by 14.20%, while the freight rates would go up by 6.50%, effective from June 25. Of the total, as much as 4.20% of the fare hike is on account of a variable Fuel Adjustment Component (FAC) approved in last year’s rail budget, remaining 10% is a flat hike across all classes. Similarly, freight rates too have 5% flat hike over and above a 1.4% of the FAC.

Further, this decision would help Indian Railways to mop up an additional Rs 8,000 crore in the financial year. In present scenario, Railways’ subsidy to passenger operations had touched Rs 26,000 crore and its ordinary working expenses have been mounting on account of fuel bill and salary.

However, Railway Minister Sadananda Gowda had sought Modii’s approval to roll out the unpopular move barely a couple of weeks before the government’s first rail budget. Gowda had also made a case for the hike to Finance Minister Arun Jaitley earlier this week.

This move besides being unpopular also was tricky one for Sadananda Gowda as the previous government prevented the proposal of this very hike to be rolled out on May 16, the day of the election results that brought in the regime change. The expected mop-up of around Rs 10,000 crore had already been factored in the interim budget passed in Parliament before elections. This was perhaps the reason behind the automatic hike that was taken by the Railways on May 16, but the same had be quickly withdrawn on account of former Railway Minister Mallikarjun Kharge’s objection.

European markets were trading in red; UK’s FTSE 100 down by 0.21%, Germany’s DAX down by 0.35% and France’s CAC 40 was down by 0.33%.

The Asian markets concluded Friday’s trade mostly in red, with Nikkei ending slightly lower as investors tended to lock in gains from recent surges, despite optimism over the global economy. Moody’s Investors Service stated that the prolonged effects of China’s property market slowdown could hurt economic growth, but reforms to balance the economy will offset the negative impact. China’s gross domestic product growth may slow to 5-6 percent from 7-7.5 percent this year if property sales and building construction both fall by 10%. Indonesia’s outgoing finance minister stated that the next president will need to discard election rhetoric and focus on raising fuel prices and luring foreign investment to address the budget and current- account deficits. Southeast Asia’s biggest economy is struggling to contain a persistent current-account deficit that helped make the rupiah Asia’s worst performer last year, while ballooning fuel subsidy costs have increased the 2014 budget shortfall and forced a reduction in state spending. Japan’s All Industries Activity Index fell to a seasonally adjusted -4.3%, from 1.5% in the preceding month.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2026.67 2.94 0.15
Hang Seng 23194.06 26.33 0.11
Jakarta Composite 4847.70 -16.57 -0.34
KLSE Composite 1885.72 4.24 0.23
Nikkei 225 15349.42 -11.74 -0.08
Straits Times  3258.80 -10.22 -0.31
KOSPI Composite 1968.07 -23.96 -1.20
Taiwan Weighted 9273.79 -43.02 -0.46

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Wednesday’s trading session turned out to be a daunting one for stock markets in India and benchmarks ended below their crucial 7,600 (Nifty) and 25,300 (Sensex) levels. Sentiments were weighed down as investors remained concerned over Iraqi turmoil. Earlier, markets made a positive start supported by report that foreign portfolio investors (FPIs) bought shares worth a net Rs 48.02 crore on June 17, 2014, as per provisional data from the stock exchanges. But, sentiments turned cautious and frontline gauges entered into red terrain after Brent crude surged above $113 per barrel on Wednesday as heavy fighting in Iraq shut the country’s biggest refinery and led to the withdrawal of staff by foreign oil firms, stoking worries about exports from the key oil producer.

Investors were also focused on the Federal Reserve’s two-day monetary policy meeting that ends later in the day, with street expecting another $10 billion cut in the pace of monthly bond purchases to $35 billion. Sentiments also remained dampened amid reports that drought-like conditions have developed in large parts of the country as the monsoon deficit has widened to a worrying 49% since the start of the season on June 1. Though, some recovery witnessed in last leg of trade on the back of bargain hunting but this was not enough to bring markets into green.

On the global front, European markets traded in the green in early deals with investors awaiting a Federal Reserve monetary-policy decision. The Fed is widely expected to cut another $10 billion from its monthly bond purchases. Though, Asian counters ended mixed as investors remained concerned over rising crude oil prices. Sentiments also remained dampened in the region after China’s house prices fell in 35 cities in May.

Back home, depreciation in Indian rupee too dampened the sentiments. Rupee were trading at 60.44 per dollar at the time of equity markets closing compared with its previous close of 60.03/04, while the 10-year benchmark bond yield rose by 6 basis points on the day to 8.66 percent. Meanwhile, public sector oil marketing companies (OMCs) viz. BPCL, HPCL and IOC declined after international crude oil prices firmed up on concern over Iraq chaos.

On the other hand, stocks related to telecommunication sector, viz Bharti Airtel, Reliance Communication and Idea Cellular edged higher after Minister of Communications & Information Technology Ravi Shankar Prasad unveiled that his ministry had given in-principle approval for a nation-wide Mobile Network Portability (MNP) and its implementation would begin after the Telecom Regulatory Authority of India (TRAI) submits its recommendations. Additionally, rail stock like Titagarh Wagons, Kalindee Rail Nirman, Kernex Microsystems and Texmaco Rail and Engineering too remained on buyers’ radar on the buzz that railway fare and freight rate gathered steam.

The NSE’s 50-share broadly followed index Nifty declined by over seventy points to end below the psychological 7,600 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex declined by over two hundred and seventy points to end below its crucial 25,300 mark. Broader markets too struggled to get any traction during the trade and ended the session with a cut of around half a percent. The market breadth remained in favor of decliners, as there were 1400 shares on the gaining side against 1,631 shares on the losing side while 101 shares remain unchanged.

Finally, the BSE Sensex plunged by 274.94 points or 1.08%, to 25246.25, while the CNX Nifty declined by 73.50 points or 0.96%, to 7,558.20.

The BSE Sensex touched a high and a low of 25609.28 and 25114.30, respectively. The BSE Mid cap index was down by 0.73%, while Small cap index lost 0.28%.

The top gainers on the Sensex were Cipla up by 2.98%, Hindalco Inds up by 2.74%, Gail India up by 1.55%, Maruti Suzuki up by 0.83% and Dr Reddys Lab up by 0.60%. On the flip side, the key losers were BHEL down by 3.21%, TCS down by 2.43%, NTPC down by 2.26%, RIL down by 2.12% and Tata Motors down by 2.08%.

On the BSE Sectoral front, Healthcare up by 0.06% was the only gainer in the space, while Realty down by 2.10%, Consumer Durables down by 1.59%, Power down by 1.51%, Oil & Gas down by 1.43% and PSU down by 1.13% were the top losers in the space.

Meanwhile, with an aim to enhance the infrastructure development in the country, the government is considering a special public-private partnership (PPP) platform to renegotiate already bid projects under PPP mode.

Allowing renegotiation after a project is bid out has emerged as a key challenge in most infrastructure sectors and the government is likely to set a resolution panel soon in line with global practices. Most countries have a provision for renegotiation of contracts under the PPP mode. On the other hand, the renegotiation of contracts under the PPP mode has been done very selectively in India. The move is likely to provide impetus to the big infrastructure products which are implemented under the PPP mode.

The development of the infrastructure sector is most critical prerequisite to boost the economic growth of any country. Infrastructure sector primarily comprises of power, ports, railways, roads, irrigation, water supply and airports. At present, Indian economy is struggling with slowdown and growth and prevailing economic downturn can be attributed partly to global factors and mainly to slow reforms and delays in implementation of projects in the country. Meanwhile, to boost the infrastructure sector, India’s government has proposed an investment of $1 trillion for the infrastructure sector during the 12th Five Year Plan, with 50 percent of the funds coming from the private sector.

The CNX Nifty touched a high and low of 7,663.00 and 7,515.50 respectively.

The major gainers of the Nifty were Cipla up by 2.69%, Lupin up by 2.68%, Kotak Mahindra Bank up by 2.37%, Hindalco Industries up by 2.37% and GAIL (India) up by 1.81%. On the flip side, the key losers were Jindal Steel & Power down by 3.43%, BPCL down by 3.30%, IDFC down by 3.08%, BHEL down by 3.05% and NMDC down by 2.96%.

The European markets were trading in green, France’s CAC 40 was up by 0.12%, Germany’s DAX was up by 0.27% and United Kingdom’s FTSE 100 was up by 0.43%.

Asian markets ended the Wednesday’s trade mixed as investors remained concerned over Iraq turmoil. Sentiments remained dampened after Brent crude surged above $113 per barrel on Wednesday as heavy fighting in Iraq shut the country’s biggest refinery and led to the withdrawal of staff by foreign oil firms, stoking worries about exports from the key oil producer. Investors were also focused on the Federal Reserve’s two-day monetary policy meeting that ends tonight, with economists expecting another $10 billion cut in the pace of monthly bond purchases to $35 billion.

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24th May 2014, Wednesday turned out to be another session of consolidation for Indian equity markets, which in absence of any fresh triggers, failed to make headway into positive territory. While, there was some caution ahead of the expiry of May derivative contracts on Thursday. Nevertheless, sentiment to some extent took a hit after overseas investors for three consecutive session sold shares worth Rs 203 crore on Tuesday, while anticipation of Jan-March GDP to confirm economy confirming slow-down, too added to the cautious undertone of the markets. Q4 GDP It data is set to be unveiled on May 31, Friday. Further, a report called India’s new ministers ‘underwhelming,’ saying no professionals were brought in for ministries targeted for reforms, such as railways and coal, too limited the uptrend of the markets.

Volatility on penultimate session of F&O expiry mainly took Nifty higher by quarter of a percent and above the crucial 7300 level by close of trade, however Sensex ended the session flat at 24,550 level. Meanwhile, broader indices underperforming larger peers by fat margins, ended with gains in the range of 0.40-1.65%.

On the global front, Strong economic data in the United States shored up Asian stocks to one-year highs on Wednesday. Riskier asset markets sped up overnight after the United States reported an unexpected rise in durable goods orders in April and higher home prices for March. Services industries, which dominate the economy, also grew at a rapid clip in May. Meanwhile, European stocks were little changed, trading near their highest level since January 2008, as GlaxoSmithKline Plc retreated after becoming the subject of a criminal investigation.

Closer home, gains in stocks from Information Technology, Realty and Technology counters were counterbalanced by losses in stocks from Metal, PSU and Consumer Durables counters. IT stocks featured in the list of top gainers for yet another session on good US economic data and Rupee’s depreciation. Meanwhile, in non sectoral gauge activity, cement stocks also witnessed buying interest amid long built-up in these stocks ahead of expiry of May derivative contracts. UltraTech, Ambuja and ACC all rallied over 4%. Besides, fertilizer stocks, namely Chambal fertilizers, National fertilizers, Zuari Agro gained after Fertilizer Minister underscored that government will take steps to revive closed urea plants. Meanwhile, airline stocks, namely Spicejet and Jet Air India too witnessed drubbing after the latter posted a record 8% quarterly loss partly as a result of higher jet fuel expenses and a one-time charge on a unit.

The BSE Sensex is currently trading at 24556.09, up by 6.58 points or 0.03% after trading in a range of 24643.33 and 24488.81. 16 stocks advanced against 14 stocks declining on the index. (Provisional)

The broader indices outperformed larger peers; the BSE Mid cap and Smallcap index settled higher by 0.40% and 1.63% respectively. (Provisional)

The gaining sectoral indices on the BSE were IT up by 1.52%, TECK up by 1.42%, Realty up by 1.40%, Bankex up by 0.56% and Capital Goods up by 0.45%. While, Metal down by 1.62%, PSU down by 1.20%, Consumer Durables down by 0.99%, Oil & Gas down by 0.88% and Auto down by 0.75% were the losing indices on BSE.    (Provisional)

The top gainers on the Sensex were Tata Power up by 3.40%, HDFC Bank up by 2.16%, Hero Motocorp up by 2.11%, Bharti Airtel up by 1.73% and Dr. Reddy’s Lab up by 1.67%. On the flip side, Coal India down by 3.43%, ONGC down by 3.17%, M&M down by 2.85% Gail India down by 2.01% and NTPC down by 1.75%.(Provisional)

Meanwhile, with a view to provide importers with greater flexibility in hedging facility, the Reserve Bank of India (RBI) has decided to allow domestic importers to book forward contracts up to 50 percent of the eligible limit under the past performance route. As per the present guidelines relating to hedging of currency risk of probable exposures based on past performance, Indian importers are allowed to book contracts up to 25 percent of the eligible limit.

The RBI further notified that importers who have already booked contracts up to previous limit of 25 percent in the current financial year, will be eligible for difference arising out of the enhanced limits. The eligible limit is determined on the basis of average of the previous three financial years’ import turnover or the previous year’s actual import turnover, whichever is higher.

The RBI’s latest move is likely to provide some relief to importers as the depreciation in rupee value increases the imports costs. During the FY14, India’s overall imports declined by 8.11% to $450.95 billion as against $490.74 billion reported in the same period of previous fiscal year. Contraction in domestic imports during FY14 was mainly driven by weak domestic demand and lower gold imports.

The CNX Nifty settled at 7,335.30, up by 17.30 points or 0.24% after trading in a range of 7,344.75 and 7,302.60. 28 stocks advanced against 22 declines on the index. (Provisional)

India VIX, a gauge for markets short term expectation lost 8.07% at 17.55 from its previous close of 19.10on Monday. (Provisional)

The top gainers of the Nifty were Ultratech Cement up by 5.67%, Ambuja Cement up by 5.49%, Tata Power up by 4.71%, ACC up by 4.32% and HCL Technologies up by 4.15%. On the flip side, Coal India down by 3.07%, ONGC down by 3.00%, Asian Paints down by 2.86%, M&M down by 2.71% and Jindal Steel down by 2.51% were the major losers on the index. (Provisional)

The European markets were trading mostly in green, with France’s CAC 40 up by 0.13% and UK’s FTSE 100 gained 0.05%, while Germany’s DAX added 0.13% (Provisional)

The Asian markets concluded Wednesday’s trade mostly in green. Details are below :

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite




Hang Seng




Jakarta Composite




KLSE Composite




Nikkei 225




Straits Times




KOSPI Composite




Taiwan Weighted




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After witnessing drubbing in the last session, Indian equity benchmarks have made a positive start and are trading in fine fettle in early deals on Wednesday buoyed by firm global cues. The S&P 500 closed at a record high for a second straight session on Tuesday, buoyed by the latest round of merger activity and as expectations for rate cuts at the European Central Bank stoked investors’ appetite for equities. The Asian markets were trading mostly in the green at this point of time after China reported industrial profits increased by 10 percent this year through April from the same period in 2013.

Back home, sentiments remained up-beat as investors continued to buy beaten down but fundamentally strong stocks. Select stocks from realty counter were trading higher on a report that government is likely to grant infrastructure tag to low-cost housing segment, which will enable real-estate developers to get finance from banks and for longer tenures. However, some cautiousness crept after Finance Ministry said that it has to be watchful of the Current Account Deficit (CAD) as well as the rupee because global markets are still volatile.

On the sectoral front, capital goods, software and technology witnessed the maximum gain in trade, while metal, power and realty remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1,270 shares on the gaining side against 566 shares on the losing side while 47 shares remain unchanged.

The BSE Sensex is currently trading at 24601.07, up by 51.56 points or 0.21% after trading in a range of 24643.33 and 24552.76. There were 14 stocks advancing against 16 declines on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.66% and Small cap index up by 1.19%.

The top gaining sectoral indices on the BSE were, Capital Goods up by 1.65%, IT up by 0.85%, TECK up by 0.79%, Power up by 0.53% and Consumer Durables up by 0.30% while Metal down by 0.97%, Realty down  by 0.39%, PSU down  by 0.29%, Auto  down by 0.11%, and FMCG up by 0.10% were the top losers.

The top gainers on the Sensex were BHEL up by 3.81%, Hero MotoCorp up by 2.46%, Maruti Suzuki up by 1.71%, L&T up by 1.69% and ICICI Bank up by 1.07%. On the flip side, Coal India was down by  3.33%, Hindalco Inds was down by 1.37%, Tata Motors  was down by 1.13% , SSLT was down by 1.03%  and ONGC was down by 0.94%  were the losers on the Sensex.

Meanwhile, According to Petroleum Ministry, under-recoveries on sensitive petroleum products are likely to fall 20 percent from Rs 1,39,869 crore during FY14 to Rs 1,11,000 crore in FY15. The oil ministry highlighted that in the financial year 2015, the oil subsidy burden for new government will be the lowest since 2011-12. The loss on diesel, kerosene and cooking gas (LPG) is expected to be Rs 35,000 crore, Rs 29,000 crore and Rs 47,000 crore in FY15 mainly due to decline in the diesel subsidy and increase in prices owing to the diesel decontrol measures (Rs 9.06 a litre) since January 2013.

The Petroleum Ministry further highlighted that the appreciation in rupee’s value has also helped bring the figure down. The Ministry’s calculations are based on the crude oil prices at $105-108 a barrel and the rupee at about 58/dollar. Presently, public sector companies Bharat Petroleum Corporation, Indian Oil Corporation and Hindustan Petroleum Corporation are incurring a daily loss of Rs 318 crore on the sale of diesel, kerosene and cooking gas.

An appreciation in rupee value against the dollar cut Rs 10,000 crore on the under-recovery front. Over the past couple of months, Indian rupee has appreciated and if the current trend continues coupled with new government’s move to keep increasing the diesel prices monthly by 50 paise a litre, the under-recovery on high-speed diesel will be wiped out in six months. Overall under-recoveries will further decline if the new government implements the suggestions of the Kirit Parikh committee, which recommended a Rs 5/litre increase in diesel prices, Rs 250-a-cylinder rise in LPG prices and a Rs 4/litre rise in kerosene prices.

The CNX Nifty is currently trading at 7,332.25 up by 14.25 points or 0.19% after trading in a range of 7,344.75 and 7,317.35. There were 27 stocks advancing against 22 declines while 1 stock remained unchanged on the index.

The top gainers of the Nifty were BHEL up by 3.68%, Ambuja Cement up by 2.52%, ACC up by 2.15%, Hero Moto Co up by 2.00% and Maruti up by 1.85%. On the flip side, Coal India down by 3.41%, DLF down by 1.96%, Kotak Bank down by 1.65%, Asian Paint down by 1.60% and Hindalco down by 1.34% were the top losers on the index.

Asian markets were trading  in green; Shanghai Composite gained 3.21 points or 0.16% to 2,037.78, Hang Seng improved 192.12 points or 0.84% to 23,136.42, Jakarta Composite strengthened by 7.98 points or 0.16% to 4,971.90, KLSE Composite rose 0.59 points or 0.03% to 1,868.16, Nikkei 225 spurted by 50.64 points or 0.35% to 14,687.16, Straits Times increased by 1.26 points or 0.04% to 3,275.32, Seoul Composite jumped 12.61 points or 0.63% to 2,010.24 and Taiwan Weighted was up by 30.00 points or 0.33% to 9,085.29.

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Local barometer gauges reversed all its losses after the release of narrower than expected Wholesale price index, WPI data which slid to two months low at 5.20% on account of decline in Fuel & Power index, mainly lifted the sentiment at Dalal Street. Meanwhile, bargain buying activities by select market-participants ahead of the crucial event of election results on May 16 amidst continued optimism that the Bharatiya Janata Party (BJP) and its allies would win a clear majority also aided markets’ recovery. Off day’s low, While Sensex bounced back in positive terrain to trade above the crucial 23,800 level, Nifty albeit in red with slender loss, reclaimed the crucial 7,100 mark. However, the session turned out to be harrowing for broader indices, which were trading lower with losses in the range of 0.35%-0.55%.

On the global front, Asian pacific shares stepped back from highs on profit-booking amidst concerns over the situation in Ukraine, with Japanese markets declining despite better than expected GDP data. Japan’s gross domestic product jumped 5.9 percent on year in the first quarter of 2014 that was well above forecasts for an increase of 4.2 percent following the 0.7 percent gain in the previous three months. Meanwhile, European markets got off to a muted start as mixed national GDP data from France and Germany contrasted with some upbeat corporate earnings, keeping key indexes within striking distance of multi-year highs.

Closer home, majority of the sectoral indices on BSE were trading into positive terrain, with stocks from Information Technology, Technology and Capital Goods counters trading contrary to the trend. Meanwhile, banking stocks also lost out on account of profit-booking, while results of Bank of India also disappointed. On the flip side, stocks from Power, Consumer Durable, Realty counters were the top performers of the session, which witnessed maximum demand. The overall market breadth on BSE is in the favour of declines which thumped advances in the ratio of 1558:1008; while 144 shares remained unchanged.

The BSE Sensex is currently trading at 23821.90, up by 6.78 points or 0.03% after trading in a range of 23,971.78 and 23742.75. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices witnessed additional selling pressure; with both BSE Mid cap and Smallcap index trading lower by 0.34% and 0.55% respectively.

The gaining sectoral indices on the BSE were Power up by 1.38%, Consumer Durables up by 0.85%, Realty up by 0.58%, Healthcare up by 0.24% and Auto up by 0.23%. On the flip side, IT down by 0.75%, TECK down by 0.73%, Capital Goods down by 0.56%, Bankex down by 0.13% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.66%, Tata Steel up by 2.82%, Tata Power up by 2.65%, Sun Pharma up by 2.26% and Axis Bank up by 1.49%. On the flip side, Coal India down by 1.49%, ICICI Bank down by 1.39%, Wipro down by 1.23%, L&T down by 1.14% and TCS down by 0.98% were the top losers on the index.

Meanwhile, in a complete divergence to Retail Inflation data, the annual rate of inflation, based on monthly WPI, eased in-line with expectation at two month low of 5.20% in month of April, 2014, as compared to 5.70% for the March and 4.77% during the corresponding month of the previous year. However, in a bit of worry February Inflation stood higher at 179.5 as compared to 178.9 (provisional) and annual rate of inflation based on final index stood revised at 5.03% as compared to 4.68 percent respectively. Meanwhile, build up inflation rate in the financial year so far stood at 0.22% compared to a build up rate of 0.71% in the corresponding period of the previous year.

The decline in headline inflation was mainly on account of decline in Fuel & Power index, which occupies 14.91% weight in the overall index. The group slid by 1.0% to 211.0 (provisional) from 213.1 (provisional) for the previous month due to lower prices of aviation turbine fuel and furnace oil (4% each), LPG and petrol (2% each) and kerosene and bitumen (1% each).

Meanwhile, Primary article index, which occupies 20.12% weight in the overall headline index, rose by 1% to 242.5 (provisional) from 240.2 (provisional) for the previous month on account of 1.5% surge in Food Articles at 238.8. On the flip side, index for Non-Food Articles group declined by 0.4% to 216.3 (provisional) from 217.2 (provisional) for the previous month.

Further, the index of Manufacture Products, which occupies the majority 64.97% weight in WPI index, rose by 0.2% to 153.8 (provisional) from 153.5 (provisional) for the previous month on account of surge of food articles by 0.8% at 153.8 (provisional) from 153.5 (provisional) for the previous month.

However, the headline inflation does not assume much of significance ever-since Reserve Bank of India moved its focus to CPI, being the main index in terms of key determinants. A factor that matters is the higher Retail inflation figures, which has surged to three months high at 8.59% in April, driven by higher food prices, notably ahead of RBI’s monetary policy review on June 3, 2014. Additionally, sticky core inflation, which stood at 3.4% in April against 3.5% in March, also remains to be cause of worry.

The CNX Nifty is currently trading at 7,103.30, down by 5.45 points or 0.08% after trading in a range of 7,152.55 and 7,082.55. There were 25 stocks advancing against 25 declining on the index.

The top gainers of the Nifty were NTPC up by 3.78%, Tata Powers up by 2.77%, Tata Steel up by 2.67%, PNB up by 2.20% and Sun Pharma up by 2.07%. On the flip side, Asian Paint down by 5.00%, Bank of Baroda down by 3.31%, NMDC down by 2.04%, Ambuja Cement down by 1.65% and Coal India down by 1.54% were the major losers on the index.

Asian equity indices were trading mixed; Hang Seng up by 0.18%, Taiwan Weighted up by 0.06% and Straits Times up by 0.18%. While, Shanghai Composite down by 1.12% and Nikkei 225 down by 0.75% were the only losers amongst Asian pack.

European markets got off to a muted start; with United Kingdom’s FTSE 100 trading flat, France’s CAC 40 index  declining by 0.14% and Germany’s DAX trading lower by 0.04%.

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