Benchmarks trade in green in late afternoon session

Indian equity markets erased all losses and started trading in green in late afternoon session on account of buying in frontline blue chip counters. The sentiments got some support after the wholesale price index-(WPI) based inflation fell to -2.4% lower than previous month’s number of -2.35% and 5.66% during the corresponding month of the previous year. Traders were seen piling position in Infra, IT and PSU stocks while selling was witnessed in Auto and Bankex sector stocks. In scrip specific development, Tata Motors was trading weak touching fresh 52-week low on bleak China outlook. India Cements was trading in red after Justice Lodha Panel suspended IPL team ‘Chennai Super Kings’ with immediate effect from the league for two years. The team is co-owned by India Cements.

On the global front, the Asian markets were trading mostly in green, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,450 and 27,900 levels respectively. The market breadth on BSE was positive in the ratio of 1570:1083 while 117 scrips remained unchanged.

The BSE Sensex is currently trading at 27978.18, up by 16.99 points or 0.06% after trading in a range of 27853.96 and 27995.04. There were 16 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.49%, while Small cap index up by 0.72%.

The gaining sectoral indices on the BSE were INFRA up by 0.87%, IT up by 0.68%, PSU up by 0.63%, Metal up by 0.62% and Oil & Gas up by 0.60%, while Auto down by 0.41% and Bankex down by 0.26% were the losing indices on BSE.

The top gainers on the Sensex were Coal India up by 2.24%, BHEL up by 1.43%, Infosys up by 1.39%, Cipla up by 1.34% and Hindustan Unilever up by 1.29%.

On the flip side, Tata Motors down by 2.15%, Hindalco down by 1.69%, SBI down by 1.11%, Vedanta down by 0.88% and ITC down by 0.56% were the top losers.

Meanwhile, remaining in negative zone for the eighth consecutive month and its lowest since November 2014, the annual rate of inflation, based on monthly Wholesale Price Index (WPI) Inflation, stood at -2.40% (provisional) for the month of June, 2015 (over June, 2014) as compared to -2.36% (provisional) for the previous month and 5.66% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 1.42% compared to a build up rate of 1.50% in the corresponding period of the previous year.

Component wise, inflation in primary articles having weight of 20.12% rose by 1.4 percent to 248.4 (provisional) from 244.9 (provisional) for the previous month. In primary articles the index for ‘Food Articles’ group rose by 1.3 percent to 257.3 (provisional) from 253.9 (provisional) for the previous month. The index for ‘Non-Food Articles’ group rose by 2.2 percent to 218.5 (provisional) from 213.9 (provisional) for the previous month, while the index for Minerals  group rose by 0.3 percent to  248.5 (provisional) from 247.7  (provisional) for the previous month.

Fuel & Power having weight of 14.91% too witnessed rise of 0.6 percent to 191.0 (provisional) from 189.8 (provisional) for the previous month, due to higher price of aviation turbine fuel, petrol and kerosene.

Manufactured Products, the major group having weight of 64.97%, witnessed modest rise of 0.1 percent to 154.2 (provisional) from 154.1 (provisional) for the previous month. Of the manufactured products, the index for Food Products group rose by 0.8 percent to 173.1 (provisional) from 171.7 (provisional). The other groups which showed rise in the month of June included Textiles, Wood & Wood Products, Paper & Paper Products, Leather & Leather Products, Rubber & Plastic Products, Chemicals & Chemical Products, Machinery & Machine Tools and Transport, Equipment & Parts.

On the other hand, index for ‘Non-Metallic Mineral Products’, ‘Basic Metals, Alloys & Metal Products’ groups from the manufactured product groups witnessed decline in the month of June.

The conflicting numbers of WPI and CPI inflation may give some hopes of rate cuts again but the major concern is the rise in food articles and as the RBI is now guided by movements in consumer price inflation for deciding its monetary stance, it will closely observe the trends in food inflation and the monsoon rain, crucial for the summer-sown kharif crop.

The CNX Nifty is currently trading at 8466.25, up by 6.60 points or 0.08% after trading in a range of 8424.10 and 8470.95. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.39%, Ambuja Cement up by 2.00%, BPCL up by 1.48%, Infosys up by 1.47% and BHEL up by 1.41%.

On the flip side, Tata Motors down by 2.14%, Hindalco down by 1.78%, SBI down by 1.32%, Vedanta down by 0.85% and Kotak Mahindra Bank down by 0.84% were the top losers.

The Asian markets were trading mostly in green; Straits Times increased 0.31 points or 0.01% to 3,311.53, Jakarta Composite increased 4.04 points or 0.08% to 4,897.96, FTSE Bursa Malaysia KLCI increased 5.72 points or 0.33% to 1,721.83, Taiwan Weighted increased 7.84 points or 0.09% to 9,041.76 and Nikkei 225 increased 295.56 points or 1.47% to 20,385.33.

On the other hand, Hang Seng decreased 103.1 points or 0.41% to 25,120.91, Shanghai Composite decreased 45.9 points or 1.16% to 3,924.49 and KOSPI Index decreased 2.29 points or 0.11% to 2,059.23.

The European markets were trading in red; Germany’s DAX decreased 54.04 points or 0.47% to 11,430.34, France’s CAC decreased 13.83 points or 0.28% to 4,984.27 and UK’s FTSE 100 decreased 8.16 points or 0.12% to 6,729.79.