Markets recover lost ground despite weak inflation numbers

The Indian equity markets recovered some lost ground and currently moving towards green zone to some strong buying in blue chip counters. Investor’s sentiments were very cautious and nervous on weak inflation numbers and ahead of F&O expiry. Meanwhile inflation numbers for the week ending September 17 are out and primary article inflation during the period stands at 11.45% versus 12.17% (WoW). Fuel group inflation during the period stands at 14.69% versus 13.96% (WoW) and food inflation is at 9.13% versus 8.84% (WoW). On sectoral front several stocks from IT, FMCG and TECk were finding some support while capital goods, consumer durables, metal and realty sectors were trading notably lower. Power, healthcare, auto, bank and oil stocks were trading weak as well. On the global front, Asian shares trading mixed on growing worries that Europe's intractable debt problems will plunge the world into a second global financial crisis. Back home, the market breadth favoring the negative trend; there were 915 shares on the gaining side against 1,417 shares on the losing side while 88 shares remained unchanged.

The BSE Sensex is currently trading at 16,415.39, down by 30.63 points or 0.19%. The index has touched a high and low of 16,445.22 and 16,316.66 respectively.  There were 10 stocks advancing against 20 declines on the index.

The broader indices too were trading in the red; the BSE Mid cap and Small cap indices were down by 0.65% and 0.42% respectively. 

IT up by 0.62%, FMCG up by 0.51% and TECK up by 0.33% remained the gainers on the index. Meanwhile, CG down by 2.27%, CD down by 1.93%, Metal down by 1.27%, Realty down by 1.01% and Power down by 0.84% were the top losers on the index.

The top gainers on the Sensex were Jaiprakash Associates up by 2.86%, HDFC Bank up by 2.26%, HDFC up by 1.44%, Infosys up by 1.19% and Bajaj Auto up by 1.11%

On the flip side, L&T down by 3.65%, SBI down by 2.32%, Sterlite Industries down by 1.96%, Tata Motors down by 1.86% and Coal India down by 1.77% were the top losers on the index.

Meanwhile, the central government is in the process of reviewing the policy that guides the petrochemical sector, which is currently in an expansion mode. The Indian petrochemical industry is projected to grow by 11% annually by 2017. The sector currently accounts for 13% of the national exports and 8% of its imports, said Chemicals and Petrochemicals Secretary K. Jose Cyriac.

By adding further he said, that the government is in the process of reviewing the policy for promotion of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIR) to bring it in sync with the ground realities. The PCPIR is a specifically delineated investment region planned for the establishment of production facilities for petroleum, chemicals and petrochemicals. 

The Chemicals and Petrochemicals Secretary also indicated that the government has started the rollback of the tariff and non-tariff barriers included as protective measures against the outcome of the 2008 financial crisis. He also stated that the sector had huge potential in areas like agricultural facilities, packaging, transportation and storage facilities and asked the industry to ensure a better system for effective collection, segregation and recycling of plastic waste.

The S&P CNX Nifty is currently trading at 4,936.10, down by 9.80 points or 0.20%. The index has touched a high and low of 4,943.45 and 4,906.00 respectively.  There were 18 stocks advancing against 32 declines on the index.

The top gainers of the Nifty were JP Associates up by 3.00%, Grasim up by 2.39%, HDFC Bank up by 2.07%, HDFC up by 1.62% and Infosys up by 1.39%.

L&T down by 3.47%, Sesa Goa down by 2.71%, SBI down by 2.51%, Sterlite Industries down by 2.41% and Cairn India down by 2.36%, were the major losers on the index.

Asian markets were mostly trading in green; Jakarta Composite was up by 0.14%, KLSE Composite up by 0.46%, Nikkei 225 up by 0.69%, Straits Times up by 0.11% Seoul Composite up by 2.58% and Taiwan Weighted up by 0.50%. On the flip side, Shanghai Composite down by 0.25% was the lone loser.