The benchmark Sensex today closed above 32,000-mark after gaining over 100 points in early morning trade, however, it soon fell to trade in red since the morning while the Nifty 50 closed in negative territory after making a new high in the opening trade nearing 9,900, as weak corporate earnings failed to boost the market sentiments. Wholesale inflation fell to 0.90% in June — the lowest in at least eight months. The Sensex ended in red, down 0.05% at 32,020.75 points and the broader Nifty 50 too closed down 0.05% at 9,886.35 points. This week came out to be a historic one for the domestic markets as the both the benchmark indices rallied to hit record highs. BSE Sensex gained over 660 points while the NSE component Nifty added 220 points to clock the lifetime highs.
Sectoral indices of NSE were mixed throughout the day with banking, financial services and pharma indices gaining up to 0.96% while auto, FMCG, IT, media, metal and realty ended in red with loses up to 1.05%. The major gainers in Sensex include NTPC (up 2.02%), Kotak Mahindra Bank (up 1.3%), Cipla (up 0.96%), SBI (up 1.04%), Reliance Industries (up 0.8%). The IT stocks dragged the indices throughout the day’s trade, with Wipro (down 1.97%), TCS (down 1.76%), Infosys (0.6%).
Shares of TCS fell by nearly 3% today after the company reported a 5.9% decline in consolidated net profit for the April-June quarter.While Infosys shares went up by 3% to the day’s high of Rs 1,006.85 after the IT major has posted a rise in net profit by 1.4% to Rs 3,483 crore.
The decline of the prices in food articles, including vegetables dragged the WPI indicator to eight- month low. Inflation based on the wholesale price index (WPI) was 2.17% in May 2017 and -0.09% in June 2016. The slowdown in wholesale inflation comes against the backdrop of retail inflation easing to a record low of 1.54% in June. The WPI figure is at the lowest level in at least eight months — since the availability of data for the new 2011-12 base year series.
Soon after retail inflation hit a record low, Chief Economic Advisor Arvind Subramanian had said there had been a “paradigm shift” in inflation trajectory and that has been “missed by all”.
Global shares were moderately higher Friday as investors awaited a raft of corporate earnings due out next week. The Federal Reserve chair’s second day of testimony to Congress generated little market-moving news. Oil prices too edged higher in choppy trading on Friday and were on track for solid weekly gains following positive demand signals and a reported decline in stocks. Brent crude futures, the international benchmark for oil, were 27 cents higher at $48.69 per barrel at 3:15 pm.