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Sensex Recovers Early Losses, Still Down 45 Pts On Fall In WPI

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In an irregular trade, the benchmark S&P BSE Sensex on Thursday (14 May) trimmed major part of early losses on hopes of rates cut by the central bank following fall in inflation based on CPI and WPI, till showing a small loss of 45 points to close at 27,206.06.
Slow-down in capital outflows amid better global advices also helped the smart recovery in share values.
Inflation, as measured on the Wholesale Price Index (WPI) dropped to a new low of (-)2.65 pct in April from (-)2.33 pct in March 2015. The inflation based on Consumer Price Index (CPI) was down to 4.87 pct in April from 5.25 pct (revised upwards) in March, 2015, giving a space for the Reserve Bank of India to cut the key interest rates in its next bio-monthly monetary policy review in first week of June.
As a result, operators and wary retail investors went on buying spree, leading to positive total market breadth despite fall in the sensex.
Selling was observed mainly in IT, CD, Teck, capital goods and pharma shares while realty, oil&gas, auto, metal and power counters were in demand, cushioning the sensex fall to a major extent, a broker said.
The BSE 30-share gauge resumed better and touched a high of 27,293.99 but fell back to an intra-day low of 26,948.62, displaying a fall of 302.48 points or 1.11 pct.
Later, it bounced back and settled at 27,206.06, still showing a fall of 45.04 points or 0.17 pct. Yesterday, it has risen by 373.62 points or 1.39 pct.
Similarly, the 50-issue CNX Nifty of the NSE moved erratically in a range of 8,236.25 and 8,137.30 before ending slightly weak by 11.25 points or 0.14 pct at 8,224.20. 
Brokers said profit booking by participants in stocks that recorded handsome gains in yesterday's trade and a mixed trend at Asian markets tracking overnight losses at US following a disappointing retail sales report dampened mood.
Asian stocks ended mixed as key indices in China, Hong Kong, Singapore and South Korea firmed up by 0.06 pct to 0.29 pct while indices in Japan and Taiwan moved down by 0.98 pct to 1.16 pct.
European stock markets were also trading narrowly mixed as indices in France and Germany moved up by 0.03 pct and 0.10 pct while UK's FTSE was quoted down by 0.09 pct as the euro surged to its highest level against the dollar in more than two months.
Mr. Jignesh Chaudhary, Head of Research, Veracity Broking Services said,"Local equities traded weak during the day and investors were seen in a bearish mode. Initially to open, indices started the day on a weak note and slipped down further over one percent as investors curbed their positions as concern over tax issue related to FIIs remained unsolved".
Out of 30 Sensex stocks, 18 ended in the positive zone while 12 others finished lower. Major losers were VEDL 1.65 pct, Sun Pharma 1.12 pct, Infosys 1.09 pct, Wipro 1.04 pct, HDFC 0.92 pct, TCS 0.79 pct and ITC 0.75 pct.
However, Hindalco rose by 2.92 pct followed by SBI 2.37 pct, Bajaj Auto 1.87 pct, M&M 1.71 pct, Tata Steel 1.70 pct, ONGC 1.44 pct, Maruti 1.21 pct, Cipla 1.14 pct, Hero Moto 1.11 pct, Gail India 1.11 pct and BHEL 1.05 pct.
Among the S&P BSE sectoral indices, IT fell by 0.71 pct followed by Teck 0.34 pct and CD 0.41 pct while Realty rose by 1.07 pct, Oil&Gas 1.02 pct, Auto 0.85 pct and Power 0.69 pct.
Total market breadth remained positive as 1,474 stocks ended higher, 1,220 stocks finished lower, while 112 ruled steady. The total turnover fell to Rs 2,965.41 crore from Rs 3,545.28 crore yesterday.

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