A close above 8,150 can recharge the bulls
We had mentioned in Tuesday’s closing report that Nifty and Sensex were precariously poised and that Nifty will be headed lower if it closes below 8,080. The major indices in the Indian stock markets were range-bound in Wednesday’s trading and closed with marginal losses. There is a sideways trend in the market and the bulls are unable push the market higher.
India's annual wholesale inflation for September firmed up slightly at (-) 4.54% from (-) 4.95% for the previous month, official data released on Wednesday showed. The annual inflation rate, based on the official wholesale price index (WPI), was ruling at 2.38% in September, last year. The slight firmness was attributed to rising prices of onions, pulses, milk, egg, meat and fish, which have continued to hit household budgets. On a month-on-month basis, the annual rate of inflation has been in the negative territory since November last year.
Chinese shares dipped on Wednesday after the release of inflation data showed prolonged weakness in demand. Overall, concerns about the macroeconomic trends in India and abroad, and the domestic quarterly corporate earnings were the main factors contributing to a sideways movement in the Indian stock markets for almost all of Wednesday.
Global software major Infosys was the first bluechip to come out with its results on Monday. It dampened the markets with a weak guidance on revenue growth. On Tuesday, Tata Consultancy Services (TCS) reported that its net profit increased by 14.5% year-on-year and 6.1% sequentially to Rs.6,055 crore under the Indian accounting standard. However, investors were not impressed and the stock fell.
The domestic institutional investors (DIIs) were net sellers in the day's trade. According to data with stock exchanges, the DIIs sold stocks worth Rs.207.63 crore and the foreign institutional investors (FIIs) bought stock worth Rs.121.75 crore in the day's trade.
Notwithstanding the downward trend, the Indian rupee strengthened in the day's trade. It closed the day's trade up 15 paise at 65.04 (65.035) to a US dollar from its previous close at 64.19 to a greenback.
Sector-wise, S&P BSE IT index plunged by 147.08 points, automobile index receded by 129.53 points and technology, entertainment and media (Teck) fell by 70.87 points.
The S&P BSE consumer durables index increased by 163.88, healthcare index gained 64.22 points and oil and gas index inched up by 6.38 points.
Major Sensex gainers during Wednesday's trade were: Hindalco Industries, up 3.14% at Rs.88.70; Lupin, up 1.91% at Rs.2,062; Tata Steel, up 1.14% at Rs.248; HDFC, up 1.08% at Rs.1,291.10; and Reliance Industries, up 1.06% at Rs.902.
The major Sensex losers were: TCS down 4.39% at Rs.2,483.40; Tata Motors, down 2.40% at Rs.352.30; Hindustan Unilever, down 1.85% at Rs.797.40; Coal India, down 1.72% at Rs.334.65; and ICICI Bank, down 1.58% at Rs.282.85.
The top gainers and the top losers of the indices in the Indian stock market are given in the table below:
The closing values of the major Asian indices are given in the table below:
The European indices were trading lower while US premarket futures were flat.