Sensex down over 100 points; WPI in April falls for 6th month to -2.65

WPI softened further for the sixth straight month to a low of -2.65 per cent in April compared to -2.33 per cent in March

Benchmark indices are trading lower on losses in financials, information technology and select index heavyweight stocks like RIL and ITC which have erased the gains in select auto and bank shares. The risk-appetite has failed to revive as concerns over delay in passage of reform-centric legislative proposals, tepid corporate earnings, rising bond yields in European markets and forecasts of a sub-par monsoon season have kept the investors on tenterhooks.
 
Among the key macro-data released today, the wholesale price inflation softened further for the sixth straight month to a low of -2.65 per cent in April compared to -2.33 per cent in March. Retail inflation, announced last week, has also fallen to a four-month low of 4.87 per cent that adds more strength to the hopes of a rate-cut from Reserve Bank of India.

 
At 13:52PM, the 30-share Sensex was down 133 points at 27,117 and the 50-share Nifty was down 42 points at 8,193.  
 

In the broader market, both the BSE Midcap and Smallcap indices, up nearly 0.3% each have performed better than the front-liners. Market breadth in BSE is positive with 1,221 advances against 1,154 declines.  
 
Buzzing Stocks
 
Only four out of the 12 sectoral indices of BSE are trading higher. BSE Bankex and IT indices down nearly 1% each are the top losers while BSE Oil & Gas index, up 0.2% is the top gainer.

 
Financials are trading lower except public sector lender SBI that has gained 1%. HDFC Bank and Axis Bank have shed nearly 1%, ICICI Bank and mortgage lander HDFC have declined around 1.3% each.
 
Volatility in rupee against US Dollar has kept the pressure up on IT stocks. TCS, Wipro and Infosys have declined over 1% each.
 
Metal stocks are trading mixed. While, Vedanta has declined over 2%, Tata Steel and Hindalco have moved up by 0.9% and 2.2% each.
 
Among index heavyweight stocks, ITC and RIL have declined nearly 1% each.