Benchmark’s cool off from high point of the day; Sensex hovers above 17k level

Rally witnessed in early deals at Dalal Street seems to be diminishing as benchmark indices have come off from their high point of day as traders are seen squaring off their positions on January series F&O expiry day. Losses in banks and capital goods have started eating into the gains in consumer durables, metals, oil and gas and information technology stocks. On the global front, Asian equity indices failed to provide direction as majority of bourses are shut down for Lunar New Year holiday. While US future indices are supporting the gains of Dalal Street to some extent.

Back home, market participants also witnessing spirit full rally for the second consecutive day have locked some profit. The 30 share index on BSE-Sensex- trading over 50 points is currently hovering above 17k level. Similarly, 50 share index- Nifty-on NSE oscillating around the neutral line is trading over 5100 mark. However, the broader indices barring the trend, have gained additional traction. The overall market breadth on BSE is in the favour of advances which have thumped declines in the ratio of 1468:729, while 88 shares remained unchanged.

The BSE Sensex is currently trading at 17,042.77, up by 47.00 points or 0.28%. The index has touched a high and a low of 17,110.02 and 17,016.69 respectively.  There were 19 stocks advancing against 11 declining ones on the index.

The broader indices outperforming benchmarks captured additional gains; the BSE Mid cap and Small cap indices surged 0.75% and 0.94% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.21%, Metal up by 1.18%, Oil and Gas up by 0.86%, IT up by 0.73% and PSU was up by 0.70%. While, Capital Goods down by 0.79% and Bankex down by 0.40% were the losers on the index.

The top gainers on the Sensex were Tata Motors up by 2.45%, Sterlite Industries up by 2.38%, Tata Steel up by 2.12%, Coal India up by 1.92% and HDFC up by 1.33%.

On the flip side, Hero MotoCorp down by 1.69%, L&T down by 1.61%, Jindal Steel down by 1.36%, ICICI Bank down by 1.27% and Tata Power down by 0.70% were the losers on the Sensex.

Meanwhile, Indian government has decided to no longer extend the practice of announcing weekly wholesale price index (WPI)-based inflation figures, which they did with a 15 days lag. The government is of the belief that the weekly data which showed the price trends widely watched food articles, other primary articles found in the raw form and fuel and power, did not depict the “holistic” picture of the price situation in the nation.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh which took the decision of doing away with the practice explained that there used to be lot of variation in the weekly food inflation numbers and the monthly data, as weekly data represent just 25 percent of the commodities in a basket thus failing to present a clear and holistic picture of the inflation situation.

Therefore, the CCEA gave its nod to a proposal on releasing only monthly WPI data, to curb speculative movement in prices and give a comprehensive inflation picture. In addition, releasing inflation figures on monthly basis is a practice followed across the globe so announcement of monthly WPI numbers will be more in line with the global trend.

The inflation reading for the week ended January 14, which is scheduled to be released on Friday owing to a national holiday on Thursday, is going to be the last weekly inflation announcement by the Ministry of Commerce and Industry that compiles the WPI data and releases every week, mostly on Thursdays.

Earlier, the government followed the practice of releasing the overall inflation data on weekly basis. However, in October 2009, the CCEA decided to release WPI for primary articles and fuel on weekly basis in facilitated the monitoring of the prices of agricultural commodities and petroleum products which are sensitive in nature on a weekly basis.

The S&P CNX Nifty is currently trading at 5,136.80, higher by 9.45 points or 0.18%. The index has touched a high and a low of 5,160.30 and 5,130.25 respectively.  There were 27 stocks advancing against 23 declining one’s on the index.

The top gainers of the Nifty were Tata Motors up by 2.52%, Sterlite Industries up by 2.47%, Tata Steel up by 2.16%, Cairn India up by 2.03% and Coal India up by 1.91%.

On the flip side, Kotak Bank down by 2.18%, L&T down by 1.84%, Hero MotoCorp down by 1.65%, ICICI Bank down by 1.53% and Jindal Steel down by1.52% were the major losers on the index.

In Asia, majority of bourses remained closed for Lunar New Year holiday, however, Nikkei 225 was trading up by 1.12%, Straits Times gained 0.90% and Seoul Composite was up by 0.22%.

On the flip side, Jakarta Composite was trading lower by 0.63% was the lone loser.