Sugar stocks rally

The Sensex and the Nifty were trading with small losses in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was down 27.57 points or 0.08% at 34,706.01. The Nifty 50 index was down 2.40 points or 0.02% at 10,470.10. Sentiment continued to be fragile as rising oil prices and a weakening rupee added to woes during the earnings season, amid negative global cues.

Among secondary barometers, the BSE Mid-Cap index was up 0.05%. The BSE Small-Cap index was up 0.75%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1489 shares rose and 1015 shares fell. A total of 160 shares were unchanged.

Sugar shares were in demand after media reports indicated that the government is planning to provide funding to set up an ethanol plant. To boost ethanol production, the government is planning to provide financial help to sugar companies, reports added. Dwarikesh Sugar Industries (up 13.4%), DCM Shriram Industries (up 8.59%), Balrampur Chini Mills (up 7.67%), KCP Sugar & Industries Corporation (up 6.73%), Dhampur Sugar Mills (up 4.99%), Sakthi Sugars (up 4.96%), Simbhaoli Sugars (up 4.96%), Shree Renuka Sugar (up 4.93%), Rana Sugars (up 4.87%), EID Parry (India) (up 4.54%), Triveni Engineering & Industries (up 1.91%) and Bajaj Hindusthan Sugar (up 0.21%), edged higher.

Most auto stocks declined. Mahindra & Mahindra (down 3.62%), Eicher Motors (down 2%), Maruti Suzuki India (down 1.65%), Escorts (down 1.18%), TVS Motor Company (down 1.09%), Bajaj Auto (down 1.01%) and Hero MotoCorp (down 0.61%), edged lower. Tata Motors (up 0.38%) and Ashok Leyland (up 0.52%), edged higher.

On the macro front, the official Wholesale Price Index (WPI) for 'All Commodities' (Base: 2011-12=100) for September 2018 rose by 0.7% to 120.8 (provisional) from 120.0 (provisional) for the previous month. The annual rate of inflation, based on monthly WPI, stood at 5.13% (provisional) for September 2018 (over September 2017) as compared to 4.53% (provisional) for the previous month and 3.14% during the corresponding month of the previous year, Ministry of Commerce & Industry said in a statement during trading hours today, 15 October 2018.

India's industrial production (base year 2011-12=100) increased at moderate pace of 4.3% in August 2018, compared with 6.5% growth recorded in July 2018. The industrial production growth for July 2018 has been revised marginally downwards from 6.6% increase reported provisionally.

The all-India general CPI inflation rose marginally to 3.77% in September 2018 (new base 2012=100), compared with 3.69% in August 2018. The corresponding provisional inflation rate for rural area was 3.34% and urban area 4.31% in September 2018 as against 3.41% and 3.99% in August 2018. The core CPI inflation declined to 5.82% in September 2018 compared with 5.95% in August 2018.

Overseas, European stocks were trading lower Monday, as concerns over Brexit talks, a potential slowdown in the Chinese economy and higher US borrowing costs limited investor appetite.

Asian shares were trading lower as worries over US-China trade disputes, a possible slowdown in the Chinese economy and higher US borrowing costs tempered optimism despite a rebound in global equities late last week.

US stocks ended higher on Friday, with equities rebounding from a multi-day rout that slashed 1,400 points from the Dow Jones Industrial Average at its worst and left the Nasdaq on the precipice of a correction.

In the latest economic data, import prices rose 0.5% in September. Separately, an index of consumer sentiment fell to 99 from a previous reading of 100.1.

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