Sensex hovers around 25,200; GAIL, TCS top gainers

Markets have recovered from day’s low and have turned flat with Sensex and Nifty swinging between negative and positive zone.

 

By 14:30, the Sensex was lower by 18 points at 25,210 levels and the Nifty declined 8 points at 7,533.

 

Meanwhile, broader markets are  trading mixed as BSE Mid cap index is marginally up 0.06 % and BSE Small cap index is down 0.12%.

 

The overall market breath at the BSE is weak with 1731 declines and 1109 advances.

 

As per provisional data from the stock exchanges, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,099.92 crore on Friday.

 

Inflation:

 

The wholesale price index (WPI)-based inflation rose a five-month high of 6.01% in May against 5.20% in the previous month, driven by costlier protein-based items, fuel and some manufactured products. The data, released officially today, presents a complex picture before the government and the Reserve Bank of India as its consumer price index-counterpart had eased to a three-month low.

 

These are provisional figures and may see upwards revision when finalized

 

Rupee: 

 

The rupee hit 60.23 in trade on Monday, its lowest level since May 6, after government data showed wholesale price inflation surged to a five-month high.

 

At 14.25 p.m., the rupee was at 60.15/16 versus its close of 59.76/77 on Friday.

 

Crude:

 

Crude oil futures rose 0.74% to Rs 6,431 per barrel today as speculators enlarged positions on a firming trend in the Asian region and surged to a nine-month high due to Iraq violence.

 

Analysts attributed the rise in crude futures to a firming trend in Asian trade as investors kept a wary eye on the worsening crisis in Iraq, where insurgents were advancing on the capital Baghdad.

 

Global Markets:

 

Most Asian share markets struggled on Monday, as crude extended gains and tested nine-month highs on fears the insurgency in Iraq could spread - disrupting oil exports.

MSCI's broadest index of Asia-Pacific shares outside Japan was down for most of the session, moving away from a three-year high hit a week ago, but wavered in and out of positive territory in late afternoon trading.

China's Shanghai Composite Index added 0.7%. Some publicly listed Chinese banks qualified for a reduction in reserve requirements announced by the central bank last week, bankers told Reuters on Monday.

Japan's Nikkei stock average ended down 1.1% at a two-week low, dragged lower by fears of higher materials costs.

 

Sectoral Indices:

 

Back home, the top loser at this hour is Capital Goods which slumped 0.9%, followed by Auto, Bankex, Power and Oil & Gas.

 

While on the winning side, IT outperformed all the indices up 1.55% on weaker rupee day, other sectors that gained were: Healthcare, Realty, Consumer Durables and FMCG.

 

Buzzing Stocks:

 

Axis Bank was the top loser at the Sensex which tumbled down over 3%, while M&M and Larsen & Turbo were down more than 2.3% and HDFC and Tata Motors slipped to nearly 1%.

 

On the other side, GAIL rose nearly 2.5%. Weaker rupee edged up Infosys, TCS and Sun Pharma nearly by 2%.

 

Among other shares, Aurobindo Pharma has moved higher by 3% to Rs 718, also its record high, in otherwise weak market on BSE.