Tag: cpi

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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Extending their gaining streak for the fourth straight session, Indian equity markets scaled fresh all time closing high levels, as exit polls predicted that the Modi-led NDA is set to cross the magic figure of 272 in the just-concluded elections. Hectic buying activity in blue-chip stocks during the session too drove the markets higher, with frontline gauges ending at their all time closing high levels of 23,850 (Sensex) and 7,100 (Nifty). Meanwhile, rally at Dalal Street also saw participation of broader indices, which traded in-line with larger peers, ending with profit of around one and a half percent.

At one point of time Sensex surpassed its crucial 24,000 mark, but profit booking dragged the market below that level. Some cautiousness too was witnessed in the markets on account of weak set of economic data. The Industrial production contracted for the second month running in March, while consumer inflation accelerated to a three-month high in April. IIP contacted 0.5% in March, compared with a 1.8% decline in February, while CPI inflation accelerated to 8.59% in April from 8.31% in March.

But, overall sentiments remained up-beat on report that overseas investors put in Rs 1,200 crore into equities, taking their two-day investment tally to nearly Rs 2,500 crore ($420 million) on Monday, as per provisional figures provided by the stock exchanges.

On the global front, shares in Europe firmed up, tracking solid gains in US equities on Monday and driven by upbeat earnings from large corporate in the region. Moreover, the Asian markets ended mostly in the green as investors shrugged off tensions in Ukraine. Though, Chinese markets ended slightly lower after the nation’s Industrial Production fell to 8.7%, from 8.8% in the preceding month. Chinese Retail Sales too fell to an annual rate of 11.9% from 12.2% in the preceding month.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Appreciation in Indian rupee too supported the sentiments. Meanwhile, stocks related to Capital goods counters edged higher on hopes that the growth focused BJP-led NDA would unveil infrastructure reforms that would ultimately lead to new order inflows. Additionally, stocks related to public sector oil marketing companies (OMCs) viz. BPCL, HPCL and IOC edged higher as diesel prices were on Monday hiked by Rs 1.09 a litre, excluding state levies.

The NSE’s 50-share broadly followed index Nifty surged by over ninety points to end above its psychological 7,100 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex zoomed over three hundred and twenty points to surpass the psychological 23,850 mark. Broader markets too traded with traction and ended the session with gain of around one and a half percent. The market breadth remained in favour of advances, as there were 1,623 shares on the gaining side against 1,268 shares on the losing side while 147 shares remain unchanged.

Finally, the BSE Sensex surged by 320.23 points or 1.36%, to 23871.23, while the CNX Nifty gained 94.50 points or 1.35% to 7,108.75.

The BSE Sensex touched a high and a low of 24068.94 and 23729.25, respectively. The BSE Mid cap index was up by 1.44%, while the Small cap index rose by 1.71%.

The top gainers on the Sensex were BHEL up by 10.25%, Hero MotoCorp up by 5.39%, ONGC up by 3.81%, Tata Power up by 3.62% and Wipro up by 3.36%. While Dr Reddys Lab down by 3.99%, Tata Motors down by 0.94%, Hindalco Inds down by 0.84%, HDFC Bank down by 0.60% and Sun Pharma down by 0.47% were the top losers in the index.

On the BSE Sectoral front, Power up by 3.26%, Consumer Durables up by 2.92%, Oil & Gas up by 2.84%, IT up by 2.59% and Capital Goods up by 2.51% were the top gainers, while Healthcare down by 0.45% was the only loser in the space.

Meanwhile, the industry body Ficci’s latest survey has highlighted that the growth in manufacturing sector is expected to moderate during the first quarter of the current fiscal due to weak domestic demand and slowdown in global demand for Indian products. The survey indicated that even with sluggish domestic demand, the exports outlook for sector too seems to be weakening, as a result of which manufacturing growth is likely to decline in Q1FY15.

The survey noted that out of 352 units, which participated in the survey, only 36 percent have reported higher order books for April-June FY15. The proportion of respondents expecting higher exports in the Q1 FY15 has fallen to 36 percent as against 58 percent in the Q4 FY14. Out of the 14 manufacturing sectors, five industries such as Automotive, Capital Goods, Machine Tools, Cement and Steel & Metals are likely to witness low growth of less than 5 percent. The Ficci’s survey further added that only three sectors, leather, chemicals and ceramics are expected to have a strong growth of over 10 percent in Q1 FY15 and rest are likely to witness moderate growth.

The output of manufacturing sector, which constitutes 75.52% in the IIP index, declined 1.2 percent in March against growth of 4.3 percent a year earlier. During the April-March period of 2013-14, the sector’s output contracted 0.8 percent compared with 1.3 percent growth previously. The sector’s output was mainly impacted by weak demand as Indian economy is struggling with slowdown. Indian economy’s growth slowed down to a decade low at 4.5 percent in FY13 and 4.6 percent during the first three quarter of FY14.

The CNX Nifty touched a high and low of 7,172.35 and 7,067.15 respectively.

The top gainers of the Nifty were BHEL up by 10.37%, Hero MotoCorp up by 6.02%, Ambuja Cements up by 4.89%, Bank of Baroda up by 4.54% and DLF up by 4.24%. On the other hand, PNB down by 4.77%, Dr. Reddy’s Laboratories down by 4.39%, Cairn India down by 1.25%, Hindalco Industries down by 1.12% and HDFC Bank down by 0.76% were the top losers.

The European markets were trading in green, France’s CAC 40 was up by 0.22%, Germany’s DAX was up by 0.69% and United Kingdom’s FTSE 100 was up by 0.06%.

The Asian markets concluded Tuesday’s trade mostly in green, tracking cues from Wall Street where the major averages ended on a strong note overnight. Malaysia and Singapore markets remained shut for the trade today on account of Wesak Day holiday. Shares in the Philippines and Indonesia rose to their highest in 11 months following other Asian markets as investors shrugged off tensions in Ukraine. Indonesia sold 10 trillion rupiah ($867.30 million) of conventional bonds at an auction, higher than an indicative target of 8 trillion rupiah. Japan’s M2 Money Stock fell to a seasonally adjusted 3.4%, from 3.6% in the preceding month whose figure was revised up from 3.5%.

China’s fiscal revenue climbed 9.2% year on year in April to reach 1.25 trillion yuan ($202.92 billion). The central government revenue reached 581.2 billion yuan, up 8.5% year on year, while local government revenue stood at 666.9 billion yuan, up 9.8% from the same period last year. Chinese Industrial Production fell to 8.7%, from 8.8% in the preceding month while Chinese Retail Sales fell to an annual rate of 11.9%, from 12.2% in the preceding month. Chinese Fixed Asset Investment fell to a seasonally adjusted 17.3%, from 17.6% in the preceding month.

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