Lower inflation nos boost markets; realty, metal outperform

17 April 2008

The markets have closed the session on a strong note as decline in Inflation numbers boosted the markets sentiments and giving the positive signals to the government measures to control inflation. Positive global cues also fueled to the sentiments. Realty, technology, metal, banking and telecom stocks outperformed the markets. All BSE indices ended in green. Market breadth remained positive; nearly 4:1 on the NSE. On the global front, Asian markets closed strong.

The Sensex rose by 237.01 points or 1.46% to settle at 16481.20, and the Nifty up 71.10 points or 1.45% at 4958.40. Market breadth was positive; about 2068 shares have advanced, 764 shares declined, and 243 shares remained unchanged.

Inflation for the week ended April 5 declined to 7.14% as against 7.41% in the earlier week while the market estimated at 7.3%. This was the first weekly decline in Inflation after 8 weeks of rise. Wholesale Price Index, WPI for metals rose by 0.9% and all commodities up by 0.3%.

Top gainers on the bourses were HDFC Bank, Hindalco, HDFC, DLF and SAIL while losers - HUL, ACC, L&T, Reliance Energy, GAIL and Zee Entertainment. Most active counters were Orchid Chemical, Infosys, Reliance Industries and NDTV.

Markets have rallied for fourth consecutive days. Sensex rose nearly 786 points in the last four sessions and 674 points in this week. Overall, it was a spectacular week for the markets. Week started with strong technology news as tech giant, Infosys Technologies reported good earnings, and shown that rupee appreciation and subprime crisis have not impacted its earnings heavily. It is an positive indication for other tech companies.

Other news from IT ministry that STPI concession may be extended for small & medium IT companies, also pushed midcap and small companies shares higher. BSE Midcap and Small cap Indices ended at 6836.39, up  2.05% and 8,531.36, up 2.16%, respectively.