Key macro data flares-up volatility, Sensex up 63 points

Volatility prevailed ahead of the forthcoming industry output and inflation data leading a barometer index of the Indian equities to gain just 63 points during the mid-afternoon trade session on Friday.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) had plunged by 97.41 points or 0.38 percent on Thursday.

Volatility was also observed on the wider 50-scrip Nifty of the National Stock Exchange (NSE). It was marginally higher by 13 points or 0.16 percent to 7,800.90 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,793.77 points, was trading at 25,684.88 points (at 1.30 p.m.), up 62.71 points or 0.24 percent from the previous day's close at 25,622.17 points.

The Sensex touched a high of 25,875.96 points and a low of 25,602.45 points in the intra-day trade so far.

Analysts pointed out that the markets were trading in line with its Asian peers and that investors remained wary of taking positions ahead of the key industrial output data.

"Indian markets are trading flat in line with Asian markets led by cautiousness ahead of the domestic IIP (Index of Industrial Production) data and the US Fed meet," Vaibhav Agrawal, vice president, research, Angel Broking, told IANS.

Among Asian markets, Hong Kong's Hang Seng tumbled by 0.14 percent, Shanghai Composite Index dropped by 0.75 percent. Japan's Nikkei index was inched-down by 0.19 percent.

"Broader markets too remain flat with breadth in favour of the advances. Investors remain wary of taking positions before the weekend and we expect markets to continue to trade flat today," Agrawal said.

The IIP data will have a major bearing on the decision of the Reserve Bank of India (RBI) on the next phase of rate cuts during its upcoming monetary policy meet on September 29.

Sector-wise, healthy buying was witnessed in information technology (IT), consumer durables and fast moving consumer goods (FMCG) SECTORS.

However, metals, oil and gas and power stocks came under selling pressure.

The S&P BSE IT index gained by 80.30 points, consumer durables index rose by 68.20 points and FMCG index was higher by 56 points.

The S&P BSE metal index declined by 35.75 points, oil and gas index decreased by 34.94 points and power index slipped by 0.44 points.