Markets continue bull run; Nifty eyes 9,900 level

Indian equity benchmarks continued their bull run in late morning session, after consumer price inflation fell to a record low of 1.54 per cent in June and Chief Economic Advisor Arvind Subramanian made a strong case once more for a Reserve Bank rate cut. Investors also took some support with report that the largest oil producing bloc OPEC in its monthly report highlighted that India’s economic growth will accelerate to 7.5% in the next year 2018, widening the lead over China, whose economic expansion will slow further to 6.2%. Besides, Petroleum Minister Dharmendra Pradhan asked oil producing nations to price crude oil at reasonable levels to ensure availability of fuel to Indians at affordable rates, also aided the sentiments. Meanwhile, the commerce ministry has decided to cancel approval of all those special economic zones (SEZs) whose validity has expired and the developer has not sought extension.

On the global front, Asian markets were trading mostly in green, as investors wagered policy tightening in the United States would be glacial at best, lifting Wall Street to record peaks and lowering bond yields almost everywhere. Back home in scrip specific development, Ramco Systems soared after the company secured order from China Southern Airlines General Aviation (CSAGA), the second largest offshore helicopter operator in China for integrating its organization-wide maintenance and engineering operations.

The BSE Sensex is currently trading at 32044.71, up by 239.89 points or 0.75% after trading in a range of 31892.63 and 32046.57. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.68%, while Small cap index was up by 0.76%.

The top gaining sectoral indices on the BSE were Realty up by 1.24%, FMCG up by 1.22%, Capital Goods up by 1.06%, Power up by 0.90% and Bankex up by 0.90%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were ITC up by 1.81%, ICICI Bank up by 1.52%, Axis Bank up by 1.18%, Larsen & Toubro up by 1.13% and Kotak Mahindra Bank up by 1.06%. On the flip side, ONGC down by 0.86%, Tata Motors down by 0.26%, Mahindra & Mahindra down by 0.15% and Bajaj Auto down by 0.11% were the top losers.

Meanwhile, with a sustained dip in food prices, India’s retail inflation hit a record low of 1.54 percent in June 2017, down from 2.18% in May and 5.77% in June last year. June’s retail inflation was lowest since the government began issuing data based on the consumer price index (CPI) in 2012. As per the data of the Central Statistics Office (CSO), Ministry of Statistics and Programme, the Consumer Price Index (CPI) (Rural, Urban, Combined) on Base 2012=100 for June 2017, stood at 1.59%, 1.41% and 1.54% respectively, compared to at 6.29%, 5.26% and 5.77% respectively in June 2016.

The data also showed that Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined for June 2017 stood at (-) 1.61%, (-) 3.16% and (-) 2.12% respectively compared to 7.69%, 8.16% and 7.79% respectively in June 2016. The index value of CFPI for Rural was 133.7, for Urban 134.7 and for combined stood at 134.1 for the month of June.

As per the data, inflation in the food basket as a whole contracted further to 2.12% as compared to (-) 1.05% in May. Vegetables inflation declined to 16.53% and that of pulses and products to 21.92%. There was decline in rate of price in eggs to (-) 0.08%. On the other hand, the protein rich meat and fish turned costlier as the inflation spiked to 3.49% in June from 1.87% in May. The retail inflation in the fuel and light segment slowed to 4.54% as compared to 5.46% in May.

The CNX Nifty is currently trading at 9884.20, up by 68.10 points or 0.69% after trading in a range of 9853.45 and 9886.00. There were 42 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 2.10%, ITC up by 1.81%, ICICI Bank up by 1.76%, Yes Bank up by 1.61% and Aurobindo Pharma up by 1.33%. On the flip side, Indian Oil Corporation down by 2.22%, Bharti Infratel down by 1.99%, ONGC down by 0.95%, Tata Motors down by 0.25% and ACC down by 0.16% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 increased 5.79 points or 0.03% to 20,104.17, Shanghai Composite surged 18.95 points or 0.59% to 3,216.50, KOSPI Index added 26.61 points or 1.11% to 2,418.38, Taiwan Weighted was up by 45.42 points or 0.44% to 10,466.10 and Hang Seng strengthened 278.56 points or 1.07% to 26,322.20.

On the flip side, FTSE Bursa Malaysia KLCI decreased 1.78 points or 0.1% to 1,755.46 and Jakarta Composite was down by 1.11 points or 0.02% to 5,818.02.