Sensex, Nifty volatile; IT stocks outperform on rupee

Moneycontrol Bureau11:45 am Inflation: CPI inflation could fall below 4 percent in November-December period before climbing back to 4.5 percent in March and accordingly there will be some space for further monetary policy easing, says a Citigroup report.

According to the global financial services major, there is close to 50 bps downside to RBI's March 2017 CPI target of 5 percent and consequently some space for further easing.

Monetary policy committee (MPC), which has three members nominated by the government and the rest (three) from the RBI, lowered repo rate to 6.25 percent from 6.50 percent at the end of two-day deliberations on October 4. The next meeting of the MPC is scheduled on December 6 and 7.

11:30 am Mistry ouster: Ousted chairman Cyrus Mistry today rebutted Tata Sons' contention of expenses having risen under his four-year rule, calling it a "brazen attempt to mislead" public and shareholders and said "significant" costs were incurred for corporate jets used by Ratan Tata. Among the explanations, Mistry says that Tata Sons was bearing entire office costs for Ratan Tata, the chairman emeritus, and a "significant amount" of this was for the use of corporate jets. Mistry said the replacement of controversial lobbyist Nira Radia's Vaishnavi Communications with Arun Nanda's Rediffussion Edelman just prior to his taking over also resulted in a jump in costs from Rs 40 crore to Rs 60 crore.Don't miss: Buy, sell, hold: 5 stock that analysts are watching out

The market is very volatile as the Sensex is up 191.68 points or 0.73% at 26496.31. The Nifty is up 49.65 points or 0.6 percent at 8158.10. About 1222 shares have advanced, 992 shares declined, and 105 shares are unchanged.

Asian Paints, TCS, Infosys, Maruti and Tata Motors are gainers while Lupin, Dr Reddy's, GAIL, ITC and Tata Steel are losers in the Sensex.

Gold prices rose by 0.24 percent to Rs 29,390 per 10 gram in futures trade as participants created fresh positions, tracking a firm trend overseas.

Likewise, the yellow metal for delivery in far-month February next year moved up by Rs 50 or 0.17 percent to Rs 29,156 per 10 gram in five lots.

Analysts said fresh positions created by traders in line with a firm global trend after gold snapped its biggest three-day drop in more than a year amid signs that prices fell too far, too fast and as the dollar weakened for the first time since last week's US presidential election, influenced the precious metal prices at futures trade.