The indices are not yet out of the woods but may head higher
We had mentioned in last week’s closing report that Nifty, Sensex may bounce back a bit and that if Nifty stays above 7,500, it may head for 7,850. The major indices in the Indian stock markets were trading flat on Monday, on account of fears of higher interest rates and inflation in the near future. The indices closed with marginal gains of 0.52% or lower. The trends of the major indices in the course of Monday’s trading are given in the table below:
The choppy session saw markets cede their mid-afternoon sessions' gains, as investors were spooked ahead of the release of retail inflation data, which was expected to firm up due to seasonal factors. Initially, both the bellwether indices of the Indian equity markets opened on a negative note in-sync with their Asian peers and concerns on the parliamentary logjam that has hindered the passage of key economic legislations. However, both the indices soon rose on the back of value buying which was triggered after two-consecutive weeks of losses. The Indian benchmark indices were close to their 52-week lows during the week ended 11 December 2015. Till date in December broad-based key indices have lost close to 4%-4.5%. Healthy figures for the index of industrial production (IIP) which were released after market hours on Friday had restored investors' confidence. Notwithstanding the positive triggers, the upcoming US Federal Reserves' FOMC (Federal Open Market Committee) meet slated on Wednesday dented sentiments.
With no respite from rising food prices, notably pulses, India's annual wholesale inflation rate moved up further to (-)1.99% for November, against (-)3.81% for the month before, official data showed on Monday. As per the official wholesale price index numbers released by the Ministry of Commerce and Industry, the food articles rose sharply by 2.3% in just a month in November, as prices of fish, meat, eggs, lentils, condiments and spices, and fruits and vegetables all registered a rise. The overall annual wholesale inflation rate, though still in the negative, has risen to (-)1.99% from (-)3.81% in October, and (-)4.59% and (-)5.06% in the preceding two months. Food inflation moved up above the 0% level to 3.12% from (-)1.2% during the month under review. The annual index numbers for petrol, diesel and cooking fuels also rose, while still in the negative.
Oil and gas major Cairn India is to launch the world’s largest enhanced oil recovery programme in the Rajasthan desert using polymer injection technology for recovering more oil at its processing terminal near Barmer. The shares of the company closed at Rs124.95, down 0.56% on the BSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: