Nifty ends at 5-month high; WPI data sparks rate cut hopes

The benchmark index Nifty closed near 5-month high surpassing barrier of 5350 mark and setting positive undertone for the market in the near term. The market shrugged off gloomy trade deficit data and gave thumbs up to lower than expected monthly inflation data.

India's wholesale price index (WPI) rose a lower-than-expected 6.87% in July from a year earlier, mainly driven by higher food prices. Analysts on average had expected an annual rise of 7.37%.

Banking stocks were the biggest beneficiary from inflation data as it also sparked hopes of rate cut from the Reserve Bank of India. Bank Nifty locked 1% gain.

The Sensex shuts shop at 17728.20 up 94.75 points or 0.54% and the Nifty closed at 5380.35 up 32.45 points or 0.61%. The breadth of the market was neutral. About 1378 shares advanced, 1374 shares declined, and 691 shares remain unchanged.  

Beaten down stocks post tepid quarterly results were leading the rally in Nifty today. Tata Motors, Ranbaxy, Tata Steel closed with hefty gains of over 2%. SBI and Bharti Airtel were exceptions in that list.

Major results announced today

Reliance Infrastructure's standalone net profit fell 24% year-on-year to Rs 327 crore in the quarter ended June 2012 despite sharp jump in other income. The total income from operations increased 6.6% to Rs 3447.3 crore from Rs 3691 crore during the same period.

Reliance Power , India's second-largest private electricity producer by market value, posted a 23 percent rise in first-quarter net profit, in line with expectations, as generation capacity doubled compared to the previous period.

The world's largest aluminium rolling company Hindalco Industries' net profit fell 34% year-on-year to Rs 425 crore in the June quarter. Analysts on an average had forecasted PAT of Rs 518 crore.

Amara Raja Batteries: Recharged

Amara Raja Batteries was the star performer of the day. India's second largest battery manufacturer reported close to 100% jump in bottomline. The operating performance of the company was equally strong. The stock closed at life time high.

Swift recovery for Maruti

Maruti Suzuki India is understood to have decided on resuming partial production at its violence -hit Manesar plant by next Tuesday. "Almost all the assessments have been completed and partial resumption of the Manesar plant is likely next week.

Change of Guard at Tata Motors

Tata Motors on Tuesday appointed Karl Slym as its managing director. The post had been vacant since PM Telang retired in June. The stock surged 3%.

Slym has been with US auto maker General Motors for 17 years and is currently executive vice president and board member of China's SGMW Motors.

German, French data boost Europe, euro

European shares and the euro rose on Tuesday as slightly better than expected performances by the German and French economies in the second quarter eased anxiety about wider euro zone data that are likely to show the bloc sliding back towards recession.

Demand for gold in India, one of the top buyers in the world, remained subdued on Tuesday after prices moved higher on a weak rupee and chasing a similar trend overseas.

Indian equity benchmarks remained higher with more than 0.6% gains due to consistent buying interest in ICICI Bank and Reliance Industries. Tata Motors, ONGC and L&T too were quite supportive.

The 30-share BSE Sensex advanced 113.28 points to 17,746.73 and the 50-share NSE Nifty gained 36.65 points at 5,384.55.

Top commercial vehicle maker Tata Motors jumped 2.6% and country's largest private steel producer Tata Steel rallied 2.4%.

Index heavyweight Reliance Industries and state-owned oil & gas producer extended gains to 1.6% and 2%, respectively.

Cigarette major ITC and engineering & construction major Larsen & Toubro were up 1% each.

Software services exporter Infosys, FMCG major Hindustan Unilever and public sector lender State Bank of India moved up 0.5%.

India's largest coal mining company Coal India and private steel producer Jindal Steel rallied 1.8% each.

Shares of HDFC, Sun Pharma, Bajaj Auto and Sterlite Industries dropped 1-2%.

Hindalco Industries declined 0.8% after lower than expected numbers in the first quarter due to temporary operational disturbances in the aluminium smelters. Net profit fell 34% YoY to Rs 425 crore as against analysts' expectations of Rs 518 crore.

The BSE Sensex extended gains to 100 points due to buying interest in oil & gas and banking stocks. The rise in market may be on hopes of cut in policy rates by the Reserve Bank of India (that scheduled for September 17) after the fall in inflation below 7% level. Inflation for July declined to 6.87% as against 7.25% in June due to fall in fuel and food inflation.

The 30-share BSE benchmark jumped 103.17 points to 17,736.62 and the 50-share NSE benchmark went up 35.35 points to 5,383.25.

Global markets were positive ahead of GDP data. France's CAC, Germany's DAX and Britain's FTSE climbed 0.6%-0.9%. Asian markets too extended gains in late trade; Hang Seng and Kospi rose 1% each while Nikkei, Straits Times and Taiwan Weighted were up over 0.5%. Shanghai too recovered with gains of 0.3% as against loss of 0.7% in initial trade.

Back home, country's largest private sector lender ICICI Bank jumped over 2% while its rival State Bank of India was up 1%.

Oil & gas producers Reliance Industries and ONGC went up 1.25% each. Among Tata group stocks, Tata Steel surged 2.5% and Tata Motors advanced 2.25%.

Shares of ITC, Hindustan Unilever, Larsen & Toubro and Infosys gained 0.4-0.7%. Jindal Steel and Coal India climbed 1.8% each.

Aluminium major Hindalco Industries was up 1% ahead of Q1 earnings today.

Shares of Sun Pharma, HDFC and Sterlite Industries fell 1-2%. Bajaj Auto, India's second largest two-wheeler major dropped 0.8%.

The BSE Sensex and NSE Nifty rebounded with marginal gains due to fall in inflation in afternoon trade. Inflation dropped higher than expected at 6.87% in July as against 7.25% in previous month. Analysts on an average had a forecast of 7.24%.

The BSE benchmark rose 81.55 points to 17,715 and the NSE benchmark gained 24.50 points at 5,372.40.

Country's largest lenders State Bank of India and ICICI Bank rallied 1% and 2%, respectively while their rival HDFC Bank was up just 0.2% on hopes of rate cut.

But analysts feel the Reserve Bank of India will also watch out for September inflation data before taking any decision on policy rates in the policy that scheduled for September 17.

Commercial vehicle major Tata Motors jumped nearly 2% and utility vehicle maker Mahindra & Mahindra was up over 1%.

Among metals and mining stocks, Tata Steel, Coal India and Jindal Steel shot up 2% each whereas Sterlite Industries lost 1%.

Oil & gas producers Reliance Industries and ONGC were up 1% and 0.7%, respectively. Technology majors TCS, Infosys and Wipro were trading marginally higher.

Engineering and construction major Larsen & Toubro went up 0.4% and top telecom operator Bharti Airtel moved up 0.8%.

Housing finance company HDFC and drug producer Sun Pharma fell 1-2%.

Indian equity benchmarks were volatile ahead of July inflation data. Analysts on an average expect it in the vicinity of 7.24% as against 7.25% in June, but that is still above the RBI's comfort level of 7%. Hence, the central bank may not cut policy rates in September policy.

The BSE benchmark declined 23.29 points to 17,610.16 and the NSE benchmark was down 7 points to 5,341.15. The broader markets too were flat.

Housing finance company HDFC fell 1.5% and private sector lender HDFC Bank was down 0.4%.

Cigarette major ITC, engineering and construction major Larsen & Toubro and software services exporter Infosys were trading marginally lower.

Among auto stocks, Bajaj Auto and Maruti Suzuki declined 1% each while Hero Motocorp slipped 0.7%. Tata Motors and M&M were up nearly 1%.

Power producers NTPC and Tata Power dropped more than 1%.

Index heavyweight Reliance Industries and country's largest private sector lender ICICI Bank moved up 0.7% each.

Private steel producer Tata Steel and India's largest coal mining company Coal India gained 1.7% and 2%, respectively.

The Indian rupee dropped by 36 paise to 55.70 against the US dollar.

The BSE Sensex and NSE Nifty continued to move in a narrow range around their previous closing values. The market may be waiting for inflation, which HSBC expects around 7.4% for July as against 7.25% in previous month. HSBC feels core inflation is likely to be unchanged at 4.9%.

The BSE benchmark fell 8.98 points to 17,624.47 and the NSE benchmark was down 3.65 points to 5,344.25, but the broader markets were outperforming benchmarks as the BSE Midcap Index was up 0.3% and Smallcap up 0.6%.

The India rupee has been moving in a range of 55-56 since last two weeks, which fell today by 28 paise to 55.62 against the US dollar.

Sun Pharma, country's largest drug producer by market cap and Sterlite Industries, a part of Vedanta Group topped the selling list with 2% losses.

Cigarette major ITC, housing finance company HDFC and software services exporter Infosys were down 0.5-0.7%.

Engineering and construction major Larsen & Toubro and private sector lender HDFC Bank declined over 0.3%.

Top car maker Maruti Suzuki slipped 1.6% on profit booking as it had rallied 2% yesterday.

Country's largest lenders State Bank of India and ICICI Bank moved up 0.2% and 0.6%, respectively. Index heavyweight Reliance Industries rose 0.8%.

Shares of Tata Steel and Coal India gained nearly 2% after first quarter results. Top commercial vehicle manufacturer Tata Motors and utility vehicle maker M&M went up 1% each.

Indian shares started off Tuesday trade on a flat note for the second consecutive session this week due to lack of local and global cues. Today's inflation will be closely watched, but experts feel that is not very much important for the time being.

Analysts on an average expect July inflation in the vicinity of 7.24% as against 7.25% in previous month, which is still above the RBI's comfort level of 7%. Market experts feel the inflation after monsoon season will be very important.

The 30-share BSE benchmark rose 3.21 points to 17,636.66 while the 50-share NSE Nifty was flat at 5,347.65.

Asian markets like Hang Seng, Nikkei, Straits Times, Kospi and Taiwan Weighted gained 0.2%-0.7%. Shanghai trimmed losses to 0.4% from 0.7%.

Tata Steel declined 1% after weak numbers in June quarter. Hindalco Industries fell 1% ahead of Q1 numbers today.

Sun Pharma was down 2% on profit taking. Infosys, Larsen & Toubro, Maruti, Axis Bank, HDFC Bank and Kotak Mahindra Bank were under pressure.

Coal India jumped 2% after better than expected net profit in Q1.

Ranbaxy Labs, BHEL, IDFC (up 0.7% ahead of numbers), State Bank of India, ICICI Bank, ITC and Reliance Industries were on buyers' radar.

In the second line shares, Suzlon plunged 7% and Lanco Infratech tanked 5% after reporting huge loss (by both) in the June quarter.

PTC India was down 2.5% as its net profit fell to Rs 25.2 crore from Rs 45.2 crore YoY.

Orbit Corporation and Educomp were down 1.5-2% after disappointing numbers in April-June quarter.

Ahead of June quarter earnings: Jain Irrigation rose 1.6% whereas Orchid Chemical declined 1.7% and S Kumars Nationwide was down 0.4%.

Deccan Chronicle tanked 5%. Kingfisher Airlines jumped 4%.

Thermax, JSW Ispat, SCI and Triveni Engineering were up 1-2%.