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Amid volatile trading session, markets have ended marginally lower as the Wholesale Price Index (WPI) has accelerated.
The S&P BSE Sensex was lower by 37 points or 0.15% at 25,190 while the CNX Nifty declined 16 points or 0.22 at 7,525.
Meanwhile, broader markets outperformed the benchmark indices as BSE Mid cap and Small cap indices surged 0.35% and 0.31% respectively.
The overall market at the BSE was weak with 1,573 declines and 1,377 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 5.2% 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 60.10 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 among the BSE’s sectoral indices, Consumer Goods was the top loser which slipped down by 1.16% followed Auto and Bankex down 1.07% and 0.52% respectively.
While on the winning side, IT outperformed all the indices up by 1.54% on weaker rupee day, other sectors that gained were: Realty (1.7%), Consumer Durables (0.86%) and Healthcare (0.73 %).
Buzzing Stocks
Axis Bank was the top loser at the Sensex which tumbled nearly 3% Rs 1,772, extending its nearly 8% fall in past week, after insurance giant Life Insurance Corporation of India (LIC) have offloaded equity shares worth of Rs 51 crore through open market transaction during last week.
Axis Bank was the top loser at the Sensex which tumbled nearly 3% Rs 1,772, extending its nearly 8% fall in past week, after insurance giant Life Insurance Corporation of India (LIC) have offloaded equity shares worth of Rs 51 crore through open market transaction during last week.
While M&M and Larsen & Turbo were down more than 2% and RIL and Tata Motors slipped to nearly 1.5%.
On the other side, GAIL rose 3%. Weaker rupee edged up export-oriented Sun Pharma and TCs above 2.4% and Infosys by 1.9%.
Shares in Tata Consultancy Services gained over 2% after the company kept its outlook on first-quarter margins and revenue unchanged on Friday.
Shares in Tata Consultancy Services gained over 2% after the company kept its outlook on first-quarter margins and revenue unchanged on Friday.
Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Indian Oil Corporation (IOC) – were up between 1-4% on the BSE after the government said under-recovery on high speed diesel declined further to Rs 1.62 per litre from Rs 2.80 per litre earlier
Aurobindo Pharma moved higher by 3% to Rs 718, also its record high and closed at Rs 707 in otherwise weak market on BSE.
D B Realty also surged almost 17% to Rs 102 on back of heavy volumes on the bourses.
Idea Cellular traded higher nearly 1% at Rs 136, after the RBI announced that FPIs can now purchase up to 49% stake in telecom operator. The FPI limit in the company was 24% earlier.
