The food inflation grew to a two-month high of 9.01% for the week ended May 28. Besides, the broader market indices are trading down as BSE Mid Cap rose by 0.1% and BSE Small Cap by 0.03% respectively. The key benchmark indices are trading at BSE 30-share Sensex above 18,300 mark, while Nifty is above the 5,495 mark.
At 12:25PM BSE SENSEX was at 18300.49 down by -84.41 points or by -0.46 % and then NSE Nifty was at 5495.05 down by -26 points or by -0.47 %.
The BSE MIDCAP was at 6913.47 down by -8.12 points or by -0.12 %. while the BSE SMLCAP was at 8323.93 down by -2.42 points or by -0.03 %.
The BSE Sensex touched intraday high of 18399.02 and intraday low of 18271.53 The NSE Nifty touched intraday high of 5521.45 and intraday low of 5482.55
On the economic front, in order to contain the fiscal deficit and to restrict the same to 4.6 per cent during the fiscal 2011-12, the Prime Minister's Economic Advisory Council chairman, C. Rangarajan, has stated that it has become necessary to bring forward a fresh round of hike in the prices of petroleum products.
India is a net importer of 80 per cent of its crude oil requirements. The soaring oil prices in the international market due to failure of OPEC in increasing supply has made it necessary for a price hike in order to make domestic prices at par with the international ones. The oil prices were already on an upward trend due to unrest in the Middle East and North Africa region distracting supplies. The state oil companies were struggling hard to cope up with the rising crude prices internationally and the government subsidies were not sufficient to make up for the losses incurred.
On the corporate front, Glenmark Generics, a subsidiary of Glenmark Pharmaceuticals, has received final approval from the USFDA for Mupirocin ointment.
GAIL India indicated that the company is planning an overseas purchase which could include shale gas assets in the US and Australia.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2,697, shares advanced were 1,224 while 1,345 shares declined and 128 were unchanged.
The top losers of the BSE Sensex pack were Maruti Suzuki India Ltd. (Rs. 1195.80,-1.76%), Hero Honda Motors Ltd. (Rs. 1722.20,-1.33%), Reliance Industries Ltd. (Rs. 942.35,-1.23%), Housing Development Finance Corporation Ltd. (Rs. 648.00,-1.09%), ITC Ltd. (Rs. 192.85,-1.08%), among others.
In BSE, BSE Oil&Gas index was at 9422.82 down by -64.34 points or by -0.68%. Hindustan Petroleum Corporation Ltd. (Rs. 366.70,-1.24%), Reliance Industries Ltd. (Rs. 942.35,-1.23%), Bharat Petroleum Corporation Ltd. (Rs. 606.10,-1.04%), Indian Oil Corporation Ltd. (Rs. 317.25,-0.55%), Oil India Ltd. (Rs. 1265.00,-0.22%),.
In BSE, BSE Auto index was at 8608.26 down by -54.17 points or by -0.63%. Bharat Forge Ltd. (Rs. 304.10,-1.89%), Maruti Suzuki India Ltd. (Rs. 1195.80,-1.76%), Hero Honda Motors Ltd. (Rs. 1722.20,-1.33%), Exide Industries Ltd. (Rs. 154.30,-1.03%), Ashok Leyland Ltd. (Rs. 50.95,-0.68%),.
The leading Asian bourses are trading mix as Hang Seng and Seoul Composite trading down by 0.83% and 1.19% while KLSE Composite and Nikkei 225 trading down by 0.44% and 0.50% respectively.