Sensex down nearly 100 points after Dec WPI at 0.11%

Benchmark share indices extended losses with the Sensex down nearly 100 points after government data showed that whole-sale price inflation increased slightly to 0.11% compared to 0% in the previous month.

At 12:12PM, the 30-share Sensex was down 92 points at 27,333 and the 50-share Nifty was down 23 points at 8,277.

Food articles inflation rose to 5.2% from 0.63% m-o-m while manufactured productions inflation went down to 1.57% compared to 2.04% month-on-month.
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(Updated at 11:30AM)
Benchmark share indices were trading marginally lower weighed down by selling pressure in metal shares tracking weak global commodity prices and index heavyweight ITC. Further, investors are also awaiting the December wholesale price index (WPI) due for release at noon today.

At 11:30AM, the 30-share Sensex was down 46 points at 27,388 and the 50-share Nifty was down 10 points at 8,290.

The Indian rupee was trading marginally lower at 62.15 to the US dollar compared to the previous close of 62.14.

Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 235 crore on Tuesday, as per provisional stock exchange data.

Most Asian shares pared early gains and were trading with losses. The Nikkei was down 1.5% while Straits Times eased 0.1%. Further, Hang Seng and Shanghai Composite were trading flat with positive bias.

The BSE Metal index was the top sectoral loser down 2% followed by FMCG, Oil and Gas among others. Auto, Capital Goods, Power and IT were among the gainers.

ITC was down 3% on talk that the government plans to ban sale of loose cigarettes. Among other cigarette stocks, VST Industries was down 1.4% while GOdfrey Phillips lost 3%.

Metal stocks were trading lower tracking weak global commodity prices. Copper prices dropped below $6,000 per tonne to hit their lowest levels in over five years while oil prices touched near six-year lows before rebounding marginally. Sesa Sterlite was down 3.6%, Hindalco eased 3.1% and Tata Steel slipped 2.5%.

Other Sensex losers include, Reliance Industries and ICICI Bank.

HDFC and HDFC Bank were up 1-2% contributing the most to the gains in the Sensex along with FMCG major Hindustan Unilever which resumed its uptrend and was up over 2% after a brief correction on Tuesday.

In the IT pack, Infosys continued to witness buying interest post its third quarter earnings and was up 0.7%. TCS was up 0.5% ahead of its third quarter earnings on Thursday.

Tata Motors was up 0.4% after its global wholesales stood at 85,742 in December 2014 up 8% over December 2013. Jaguar Land Rover sales for December 2014 rose 7% to 42,962 units compared with December 2013, the company said in release.

Capital goods shares firmed up on the back of encouraging November industrial growth. BHEL was up 2.2% while L&T gained 0.3%.

In the broader market, the BSE Mid-cap and Small-cap indices were trading flat with positive bias.

Market breadth was marginally positive with 1,213 advances and 1,159 losers on the BSE.