Mumbai: Equity benchmarks started off the week on a sluggish note with the indices falling marginally on Monday despite better inflation data, weighed down by FMCG and select banks & technology stocks. However, rally in metals and capital goods capped the downside.
The 30-share BSE Sensex managed to hold the 25000 level, down 17.37 points to close at 25006.98 while the 50-share NSE Nifty declined 5.45 points to 7454.15 despite positive global cues.
The market consolidated today after falling more than 900 points (Sensex) in previous four sessions and that volatility was attributed to concerns over GAAR issue, say experts, adding if the market corrects then that should be bought into.
Dhananjay Sinha, head - institutional research at Emkay Global Financial Services believes lack of clarity on General Anti-Avoidance Rule (GAAR) is causing market volatility.
According to him, earnings growth will define market trajectory in the near term. S Naganath, President and Chief Investment Officer, DSP BlackRock Investment Managers says the correction is unlikely to be more than 5-10 percent and that investors should look to buy on every correction.
On the economic data front, wholesale price index inflation for June moderated to 5.43 percent from a five-month high of 6.01 per cent in May. Food inflation came in at 8.14 per cent in june while more worrisome was the manufacturing inflation which rose by 3.61 per cent versus 3.55 per cent in May.
The street will closely watch consumer price index inflation for June which will be announced in evening today. CNBC-TV18 poll expects June CPI to come at 7.45 percent, down from 8.28 percent in May.
Stocks in action Infosys, the second largest software services exporter in India, plunged 3 percent as analysts worried over its attrition rate of more than 19 percent and also they feel the company may not be able to meet its top end of FY15 dollar revenue guidance (7-9 percent).
Its rival Wipro dropped too, down 2.2 percent whereas TCS gained more than a percent ahead of quarterly earnings on July 17.
Sesa Sterlite declined over a percent after corporate affairs ministry says it challenged High Court approval to Sesa Goa-Sterlite merger, adding this merger was designed to avoid tax.
State-run power producer NTPC was down 1 percent too after Central Electricity Regulatory Commission rejected company's plea for change in tariff norms for 2014-2019. FMCG major Hindustan Unilever and top telecom operator Bharti Airtel were among other losers, down 2.6 per cent and 1 percent, respectively.
However, shares of Tata Motors, ONGC, Hindalco Industries, Tata Steel, Tata Power, Hero Motocorp and BHEL gained 1-4 per cent. Engineering and construction major Larsen & Toubro was up 1.5 per cent after its subsidiary L&T Hydrocarbon has received Rs 5076 crore worth of order from Kuwait Oil Company.
Declining shares outnumbered advancing ones by a ratio of 1694 to 1122 on the BSE.
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