Markets end flat on mixed macro-economic data

Markets finished flat as weakness in the rate sensitive stocks on the back of rise in CPI numbers were offset by the ease in the WPI data coupled with gains in the healthcare shares.

Provisionally, the Sensex lost 28 points to end at 27,933 and the Nifty shed 6 points to close at 8,454. 

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(updated at 2:35 PM)

Markets are trading flat with a negative bias amid choppy trades dragged down by index heavyweights Reliance and HDFC and rate sensitive shares on the back of high June consumer price index (CPI) numbers, which dampened the hopes of a rate-cut by the Reserve Bank of India.

However, the easing of Wholesale Price Index (WPI) for the month of June has provided some relief to the market participants.

At 2:35PM, the 30-share Sensex was down 8 points at 27,954 and the 50-share Nifty was down 1 point at 8,459.

In the broader market, the BSE Mid-cap and Small-cap indices are trading with 0.2-0.4% higher. Market breadth was positive with 1,526 gainers and 1,175 losers on the BSE.

The Indian rupee was trading marginally higher at 63.47 against the US dollar compared to the previous close of 63.51.

MACRO-ECONOMIC DATA

The Consumer Price Index (CPI) data, which was released post market hours on Monday, revealed that the inflation for the month of June rose to a nine-month high to 5.40%. This shot in the retail prices is food driven, which increased to 5.48% from 4.8% in May.

The Wholesale Price Index (WPI) fell to 2.4% in June, continuing its deflationary mode,  led by downward fuel prices and lower commodity prices.

SECTORS & STOCKS

Sectorally, BSE Auto index is down by 0.8% followed by BSE Bankex , down by 0.4%. BSE Pharma and BSE Healthcare indices are capping the losses and are trading up by 0.6% each.

The rising CPI numbers, which could put hold on the easing of monetary policy, have put pressure on rate sensitive stocks. Among the banking shares, SBI has lost 1% while HDFC twins and ICICI bank have shed between 0.1-0.4%. From the auto pack, Tata Motors has dipped over 3% due to a slowdown in JLR sales in China.

Index heavyweight ITC is trading with 0.3% losses over the CPI numbers, which can have direct impact on the FMCG major.  HUL shares have, however, surged 1.5%

The global crude prices have fallen on the back of the progress in Iran nuclear deal. The PSU Oil marketing companies have surged on the news. HPCL , BPCL, IOC have gained between 2-3% while index heavyweight Reliance Industries and ONGC have slipped 0.7% and 0.3% respectively.

Dr Reddy’s Laboratories has gained 0.5% after the drug manufacturer announced the launch of  Memantine hydrochloride tablets of 5 mg and 10 mg.

Aurobindo Pharma has gained nearly 1% after the company received final approval from the US Food and Drug Administration (UFDA) to produce and sell Flecainide Acetate Tablets -- used for regulating heart rate -- in the American market.

From the metal pack, Vedanta and Hindalco dropped 1.5% and 2.1% respectively on account of profit –booking.

Among other shares, Jet Airways is trading higher by 4% on the BSE after the company increased its daily seat deployment on the domestic network by 1,000 seats along with the addition of new services to enhance the connectivity within the country.