Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD
Indian Indices open on a positive note today with Sensex above 60,600 & Nifty above 18,000. At the time of closing Sensex shed 412.96 points or 0.68% at 59,934.01 & Nifty sheds 126.35 points or 0.70% to close at 17,877.40.
During the day, India's inflation declined to an 11-month low of 12.41% in August, WPI inflation was 13.93% in July. Another month of double-digit increase in wholesale prices means the WPI inflation has remained above the 10% mark for 17 months in a row. The marked decline in WPI inflation in August was driven by a drop in fuel prices. India's merchandise exports for August have been raised to $33.92 billion from the preliminary estimate of $33 billion. As per the latest data, imports in August amounted to $61.9 billion, marginally higher than the preliminary estimate of $61.68 billion. The country's largest lender, State Bank of India, raised the Benchmark Prime Lending Rate (BPLR) by 70 basis points (or 0.7%) to 13.45%.
US Inflation at the wholesale level jumped 8.7% in August from a year earlier, a slowdown from July yet still a painfully high level that suggests prices will keep spiking for months to come. The two-year yield was as much as 35 basis points above the 30-year rate on Thursday, sending the inversion of the yield curve past the depths plumbed in August to levels last seen in 2000. Japan ran its biggest single-month trade deficit on record in August as imports surged on high energy costs and a slump in the yen, exposing the economy's vulnerability to external price pressures.
Oil prices edged upwards in early Asian trade, as supply concerns and a looming rail stoppage in the United States, the world's biggest crude consumer, supported markets. The International Energy Agency (IEA) expects widespread switching from gas to oil for heating purposes. European markets were choppy at the start. Shares in the Asia-Pacific mildly rose after Wednesday's negative session. On the sectoral front, auto edged higher while IT and realty shed over a percent each.
Nifty 50 top shares are Maruti, Eicher Motors, Adani Ports, Power Grid and NTPC while Hindalco, Tech Mahindra, Infy, Cipla and Apollo Hospital were among the top losers.