Market gains as Jan WPI dips to 8-month lows

The wholesale price inflation, decelerated faster than expected, to ease to an eight-month low of 5.05% in January.

Market is trading higher in a volatile session that saw key benchmark share indices swing between gains and losses in the day's trading session.

The Wholesale Price Index (WPI)-based inflation softened to 5.05% in January from 6.16% in December, helped by moderating food prices, government data showed on Friday.

Index heavyweights TCS and Infosys edged 1-2% higher supporting the benchmarks to sustain in the green zone. Tata Motors, HDFC Bank and Reliance Industries are the top gainers.

At 1:04pm, the 30-share Sensex gained 59 points to 20,253 levels while the Nifty-50 was up by 14 points at 6,015 levels.

The broader market indices are in the green zone too, with the BSE Midcap and Smallcap trading flat with a postive bias compared to the 0.3% gains in the Sensex.

Market breadth turned positive, with 1085 advances, 1147 declines, and 138 scrips remaining unchanged.

At 62.26, the rupee has appreciated compared to its previous close of 62.42 on Thursday. Weak US retail sales data has raised some investors' expectations for a slower reduction in the US Federal Reserve's monetary policy stimulus programme.

Asian markets remained mixed as Hong Kong's Hang Seng was up by almost 0.5% to 22,264.42 while Nikkei-225 decreased by more than 1.51% to 14,314.89. Singapore's Strait Times remained relatively flat compared to its previous close.

Sector and Stocks

Sectorally, BSE IT was the main gainer, increasing 0.91%, while Bankex, Power, Auto, Oil and Gas, Consumer Durables, and Healthcare also made modest gains between 0.05-0.8% each. Metal, Realty and Capital Goods were the major losers, down by more than 0.2-0.6% each.

Bharti Airtel was up by more than 2% as concerns over the spectrum auction finally came to an end yesterday. GAIL, NTPC, Tata Motors, TCS, and Infosys were the other notable gainers, increasing by 1-2% each.

On the flipside, BHEL was down by almost 2.5%. Baja Auto, Sesa Sterlite, Hindalco, and Coal India were also down by 1-2% each.

Among other stocks, Amtek India has gained by more than 5% to Rs 62.90 on reporting a more than double net profit at Rs 60 crore for the third quarter ended December 31, 2013 (Q3), on back of strong operational performance. The company had profit of Rs 28 crore in the same quarter last fiscal.

Future Retail has soared nearly 18% to Rs. 95.50 on back of heavy volumes after the company has reported a net profit of Rs 21.74 crore for the fourth quarter ended December 31, 2013 (Q4).The company had posted net loss of Rs. 20.41 crore in the same quarter last year.

Igarashi Motors India has rallied by more than 11% to Rs 92.20 after reporting a robust 123% year-on-year (yoy) jump in net profit at Rs12.57 crore for the third quarter ended December 31, 2013 (Q3), on back of strong operational revenue. The company had profit of Rs 5.63 crore in the same quarter last fiscal.