The market breadth was strong. Caution may prevail ahead of the release of inflation figure for the year from May 24, 2008 at 12 noon today. Inflation had surged to a four-year high at 8.10 per cent in the year from May 17, 2008. Also a revision of provisional inflation data for earlier period will be watched closely.
Crude oil climbed close by USD 6 yesterday, to more than USD 127 per barrel, as funds shifted back into oil when the dollar fell against the euro following a signal from the European Central Bank that it may raise interest rates. The crude contract climbed another 0.3 per cent in Asian trading today.
Later, the 30-share BSE Sensex was up by 16.03 points or 0.10 per cent at 15,785.76. It opened 144.69 points higher at 15,914.41 and struck a high of 15,970.70 in early trade. At the day's high, Sensex gained 200.98 points. Sensex lost 35.32 points, the day's low at 15,734.40, in early trade. The current sensex declined by 48.90 at 15,721.72 points from it last close.
The broader based S&P CNX Nifty index of NSE opened high at 4,680.55 points from it last close of 4,676.95. Later it recorded the day's high at 4746.30 and a low at 4657.80 points in intra day.
The current index eased.
India's largest dedicated housing finance company in terms of total income, Housing Development Finance Corporation advanced by 2.20 per cent to Rs 2,445 on 24,670 shares. It was the top gainer from Sensex pack.
Satyam Computer Services was up by 2.12 per cent to Rs 524.20 followed by Reliance Infrastructures up by 2 per cent to Rs 1,153.50, and Tata Motors up by 1.40 per cent to Rs 540.60, edged higher from the Sensex pack.
India's largest private sector company in terms of market capitalisation and oil refiner, Reliance Industries (RIL) slipped by 1.05 per cent to Rs 2,224.10 on 1.89 lakh shares. The stock had surged to an intra-day high of Rs 2,299 in opening trade.
Banking shares were mixed, ahead of inflation data. ICICI Bank was down by 0.54 per cent to Rs 777 and State Bank of India eased by 1.13 per cent to Rs 1,339.
However, India's second largest private sector bank in terms of net profit, HDFC Bank rose by 1.05 per cent to Rs 1,256.
India's leading oil exploration company in terms of market capitalisation, Oil&Natural Gas Corporation fell by 1.59 per cent to Rs 938 on 1.38 lakh shares. It was the top loser from Sensex pack.
Wipro declined by 1.40 per cent to Rs 521, Grasim was down by 0.95 per cent to Rs 2,225, and DLF eased by 1.01 per cent to Rs 533, were the other losers from Sensex pack.
Among the side counters, SpiceJet was up by 15.29 per cent to Rs 36.20, Marksans Pharma rose by 10 per cent to Rs 22.10, and Indiabulls Real Estate gained by 8.52 per cent to Rs 440.
Analysts opine that higher inflationary expectations following the recent fuel price hike have given rise to fears of a cash reserve ratio (CRR) or interest rate hike by the Reserve Bank of India, which is negative for markets. RBI Governor Y V Reddy yesterday, hinted at a possible increase in CRR in an attempt to curb inflationary expectations.
Most Asian markets were trading higher today, as Japan's Nikkei was up by 1.55 per cent at 14,563.14, Hang Seng was up by 1.06 per cent at 24,511.24, Taiwan's Taiwan Weighted was up by 0.63 per cent at 8,793.60, Singapore's Straits Times was up by 0.67 per cent at 3,165.10. However, China's Shanghai Composite declined by 0.17 per cent at 3,345.90.
US markets rallied yesterday, due to stronger-than-expected May 2008 sales by Wal-Mart and other retailers and a surprising fall in weekly jobless claims, spurring optimism about the economy's health.
The Dow Jones industrial average gained 213.97 points, or 1.73 per cent, to 12,604.45. The S&P 500 index advanced 26.85 points, or 1.95 per cent, to 1,404.05, and the Nasdaq Composite index surged 46.80 points, or 1.87 per cent, to 2,549.94, brokers added.