Markets extend gains post WPI Inflation numbers

BSE Oil & Gas index spurted by almost 3% followed by counters like PSU, Banks, Capital Goods, Realty and FMCG, all gaining between 0.5-2%

Benchmark indices have extended gains post the announcement of WPI Inflation numbers which is down to 40-month low of 5.96% in March.

After the moderate rise in February, the Wholesale price index (WPI) inflation fell to 5.96% in March 2013. This is the lowest recorded figure in 40 months.

After declining for four months straight, the WPI inflation had risen from 6.62% in January 2013 to 6.84% in February 2013, according to the data released by the Central Statistical Organisation (CSO), the Ministry of statistics and program implementation.

By 1300, Sensex surged by 110 points at 18,353, and the Nifty was up 41 points or 0.74% at 5,570 levels.

According to Siddharth Bhamre, head of derivatives at Angel Broking, “We have seen FIIs (foreign institutional investors) selling in the cash market and index futures from past couple of trading sessions. Also the global news flow has not been positive so equity markets have been weak. I do not see much of optimism in the market at the moment.”

On the global front, risk appetite was also frail after poor reading of U.S. consumer sentiment and unexpectedly weak retail sales raised concerns the U.S. economy may be losing momentum.

Meanwhile, Chinese economic growth and industrial production expanded less than economists’ estimated.

China’s first-quarter economic growth was at 7.9%, tad slower than the estimated 8% median growth, a report by the National Bureau Statistics showed.

Back home, the rupee weakened by 26 paise to trade at 54.78 against the US currency today on sustained dollar demand from banks and importers amid its higher value overseas.

Meanwhile, gold futures prices today fell by 2.95% to trade at over one-year low of Rs 27,100 per ten gram as speculators engaged in offloading their positions after the precious metal dropped to two-year low in overseas markets.

On the sectoral front, BSE Oil & Gas index spurted by almost 3% followed by counters like PSU, Banks, Capital Goods, Realty and FMCG, all gaining between 0.5-2%. However, BSE IT index is down by almost 2% followed by counters like Consumer Durable, TECk and Metal, all plunging by 1% each.

The main gainers on the Sensex at this hour include ONGC, SBI, Bharti Airtel, HDFC, RIL, L&T, Maruti Suzuki and ICICI Bank, all surging between 1-5%.

On the losing side, TCS, Tata Motors, Sterlite, Infosys, Coal India, Hindalco and HUL have gained between 1-3%.

Jewellery stocks are under selling pressure falling more than 4% after MCX gold, most active June contract traded at Rs 27,262/10 gm, down Rs 663 or 2.4%.

Among the individual stocks, Tribhovandas Bhimji Zaveri (TBZ), Renaissance Jewellery, PC Jeweller, C Mahendra Exports and Thangamayil Jewellery have dipped more than 5% each on the Bombay Stock Exchange (BSE).

Titan Industries, Gitanjali Gems and Shree Ganesh Jewellery House are trading lower by 4-5%.

Meanwhile, BSE Midcap index has gained by 0.48% whereas BSE Smallcap index is higher by 0.61%.

The market breadth in BSE remains healthy with 1,119 shares advancing and 888 shares declining.