Post Session: Sensex closes below 28k level; rate sensitive stocks fall Analysis for Jul 14, 2015

Posted By: Religare
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Amidst a lackluster trading session, the key domestic benchmark indices ended flat with a slightly negative bias on Tuesday, led by losses in the rate sensitive auto, realty and banking stocks, as hopes of rate cut were dampened as the retail inflation which touched 8-month high of 5.4 per cent in June.

The Bombay Stock Exchange bellwether Sensex closed at 27932.9, down by 28.29 points or by 0.1 per cent, while the NSE Nifty ended at 8454.1, down by 5.55 points or by 0.07.

During the day"s trade, the BSE Sensex touched an intraday high of 28018.59 and intraday low of 27853.96, while the NSE Nifty touched intraday high of 8480.25 and intraday low of 8424.10.

Retail inflation surged to eight month high of 5.4 per cent in June mainly due to costlier food items limiting the room for RBI to cut rates next month. However, in a much needed respite to market, wholesale prices fell by 2.4 per cent in June 2015 from the same month a year ago, marking the eighth straight decline, government data showed on Tuesday.

India"s wholesale prices remained entrenched in deflation in June as gains in food prices eased, keeping alive hopes of an interest rate cut at the Reserve Bank of India"s (RBI) upcoming policy meet early next month, auguring well for the outlook of Asia"s third biggest economy.

Bucking the trend, the broader market ended higher with the BSE MIDCAP quoting at 11042.47, up by 15.06 points or by 0.14 per cent, while the BSE SMLCAP at 11521.92, up by 41.8 points or by 0.36 per cent.

Leading the decline in the BSE Sensex pack were Tata Motors Ltd. (Rs. 385.75,-4.10%), Hindalco Industries Ltd. (Rs. 104.60,-1.83%), State Bank of India (Rs. 268.60,-1.81%), Vedanta Ltd. (Rs. 145.10,-1.63%), Tata Steel Ltd. (Rs. 281.70,-0.97%), among others.

Meanwhile, Coal India Ltd. (Rs. 434.05,+3.33%), Infosys Ltd. (Rs. 970.10,+2.11%), Hindustan Unilever Ltd. (Rs. 927.45,+1.91%), Hero MotoCorp Ltd. (Rs. 2640.20,+1.52%), Bharat Heavy Electricals Ltd. (Rs. 273.05,+1.35%), were among top gainers on BSE.

On the sectoral front, rate sensitive auto and realty indices emerged as top losers, shedding 0.93 per cent and 0.56 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2885, shares advanced were 1528 while 1254 shares declined and 103 were unchanged.

On the global front, Asian peers ended mixed with Chinese and Hong Kong markets closed lower amid weak Chinese economy and persistent doubts on Greece. However, Japan"s Nikkei 225 advanced as a weaker yen bolstered the appeal of exporters.

Meanwhile, European Stocks were also trading mixed as investors digested Greece bailout news and eyed the release of German economic sentiment data later in the day.

Story first published: Tuesday, July 14, 2015, 17:12 [IST]
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