The equity benchmarks closed firm after wholesale price inflation data hit a 40-month low at 5.96 percent. Core inflation data was also below 4 percent. Banking stocks closed with smart gains on hopes of a rate cut by the central bank on May 3.
The Sensex closed at 18357 up 115 points and the Nifty ended at 5568 up 39 points.
Gold prices took a dramatic U-turn on Monday, reversing early gains to drop to a two-year trough after bullion futures fell on fears about central bank sales and holdings on global exchange-traded funds sank to their lowest in more than a year. Live Commodity Prices
Technical Analyst, Sudarshan Sukhani is of the view that speculative positions are getting unwound in gold and silver.
Stocks of gold finance firms Muthoot Finance and Manappuram Finance were down 13 percent and 10 percent respectively. Falling gold prices increase the risk for gold loan firms as the probability of defaults by customers increase. Full article
Last month, Manappuram shares were hammered after the company said it would have to write off an amount larger than what it had indicated earlier, due to a section of customers defaulting on their loans.
Buying was seen in oil&gas, banks and FMCG stocks. Shares of oil marketing and exploration companies were up in trade today after US crude oil futures have dropped below USD 89 a barrel mark. Brent futures hit a nine-month low near USD 101 on Friday as a broad investor sell-off in commodities triggered falls of as much as USD 3 a barrel.
Tata Motors shares tumbled over 3 percent after ratings agency Moody's said lower market share in both passenger vehicles and commercial vehicles was a "credit negative."
Infosys ended with 2 percent gains today after shedding 22 percent on Friday. Brokerage house Motilal Oswal is bullish on the stock and sets a price taregt of Rs 2700.
Asian markets ended on a weak note after weak economic data from China and the United States raised concerns over the outlook for the global economy. Japan's Nikkei share average dropped on Monday, moving further away from near five-year highs tapped last week.
The market consolidated in afternoon trade on short covering. The Nifty was holding well above 5550 led by oil & gas, cement and bank stocks.
The market is trading firm ahead of the March inflation data to be announced today at 12 pm. Rate sensitive stocks – banks, auto and infra companies are seeing buying interest.
The market recovered a bit as the Nifty struggled to move closer to 5550. The Nifty was at 5523.55, down 5 points while the Sensex lost 33.07 points to be at 18209.49.
The market opens on a weak note ahead of the inflation data today. March WPI inflation is expected to be slightly lower at 6.4 percent. Food inflation could fall due to high base. Core inflation is seen at 3.8%.
ADS BY GOOGLE
video of the day
Dont see mkt going anywhere now; like Bharat Forge: Dipen