Markets recover from day’s lows on lower than expected inflation numbers

Indian equity markets have recovered from day's low on the back of lower than expected inflation for June, though were still trading in a tight range. The Wholesale Price Index (WPI) for the month of June dropped to 7.25% versus 7.55% in May. The April WPI inflation was revised up to 7.5% as against the provisional 7.23% earlier. Fuel group inflation fell to 10.27% versus 11.53% in May. Inflation in manufactured products for June grew at 5% versus 5.02% in May, while WPI index for food articles in June rose to 10.81% versus 10.74% in May. Primary articles inflation stood at 10.46% versus 10.8% in May. In currency markets rupee continued its gaining streak against dollar on Monday on the back of increased dollar selling by banks and exporters. On sectoral front healthcare, auto and FMCG stocks were trading in green, while metal, IT and realty stocks were trading in red. In global markets, most of the Asian shares were trading in green. Back home, the market breadth favoring positive trend; there were 1210 shares on the gaining side against 1166 shares on the losing side while 111 shares remained unchanged.

The BSE Sensex is currently trading at 17,236.25 up by 22.55 points or 0.13% after trading as high as 17,282.30 and as low as 17,162.13. There were 19 stocks advancing against 11 declines on the index.

The broader indices too have pared their gains; the BSE Mid cap index was down by 0.07 points while Small cap index was down by 0.02%.

The top gainers on the BSE sectoral space were, HC up by 1.26%, Bankex up by 0.57%, Auto up by 0.55%, CD up by 0.51 and FMCG up by 0.19% while Metal down by 1.27%, IT down by 1.14%, Realty down by 0.55%, TECk down by 0.50% and CG down by 0.31% were top losers on the index.

Bharti Airtel up by 2.94%, Cipla up by 1.75%, Dr Reddys Lab up by 1.74%, Maruti Suzuki up by 1.57% and Sun Pharma up by 1.53% were the major gainers on the Sensex, while Tata Steel down by 2.97%, Jindal Steel down by 2.17%, Gail India down by 1.60%, Infosys down by 1.47% and TCS down by 1.10% were the major losers in the index.

Meanwhile, in a bid to strengthen relation, India has signed bilateral security co-operation agreement with Mozambique. The pact was signed by Minister of State for Home Mullappally Ramachandran, who is on a three-day visit to the African nation and Mozambique Minister of Interior Jose Mandra at Maputo on July 15, 2012.

Both the leaders talked about the various steps to build up their relations in different fields for mutual benefit of the two countries. The two leaders also discussed cooperation between the two countries and interacted with the Indian Diaspora in Mozambique at a reception hosted by the High Commissioner of India to Mozambique Ashok K Amrohi.

Mozambique is rich in mineral resources and has large reserves of untapped minerals, ores and coal. Moreover, most of the cashew produced in the country is exported to India. Mozambique also exports pulses to India. There are about 25,000 people of Indian origin who have been living in Mozambique for generations.  

The S&P CNX Nifty is currently trading at 5,234.75, up  by 7.50 points or 0.14% after trading as high as 5,246.85 and as low as 5,209.20. There were 29 stocks advancing against 21 declines on the index.

The major gainers on the Nifty were Bharti Airtel up by 2.92%, Cipla up by 1.81%, Axis Bank up by 1.77%, DR Reddy by 1.72% and Maruti up by 1.57%.  While Tata Steel down by 2.94%, Jindal Steel down by 2.34%, GAIL down by 1.87%, Infosys down by 1.56% and Reliance Infra down by 1.31% were major losers on the index.

Most of the Asian equity indices were trading in the green;  Hang Seng index up by 0.14%, Nikkei 225 up 0.05%, Kospi Composite Index up 0.27%, Strait Times up 0.17%, Jakarta Composite up 0.94% and KLSE Composite up 0.50%, while Taiwan Weighted down 0.20%, Shanghai Composite down by 1.09%, were the losers.