Choppy markets end flat ahead of inflation; HUL gains 3%

Markets closed flat today ahead of the inflation nos due out tomorrow. Both the BSE Sensex and the Nifty were up 0.11 percent. The BSE Sensex, the barometer of the Indian economy, closed at 16,880, up 88 points from the day low and off 64 points from the day’s high. The market breadth was positive. On the BSE, 1,402 stocks advanced while 1,296 declined.

Among the 13 sectoral indices, 7 closed in green led by capital goods and FMCG. Autos and realty were the biggest losers on the bourse as they declined by 1.5 percent each. Stocks of diesel vehicles declined on reports that the government is planning to compensate the subsidy on diesel by taxing cars running on diesel.

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In the 30-share Sensex pack, 12 scrips gained on the bourse. Hindustan Unilever was the top performer with gains of 3 percent. In fact the stock also hit a record high during trade today.

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Airline stocks had also moved up as crude oil price declined. Stocks of Jet Airways (2.3 percent), KFA (6 percent) and SpiceJet (2.3 percent) edged up. United Breweies and United Spirits were among the top gainers in the ‘A’ group category as they rose more than 6 percent.

Tomorrow is Wholesale Price Inflation data for May. According to Reuters, core inflation growth of 5 percent or below will cement views for a rate cut by the RBI at its policy meeting on 18 June. Reuters poll sees wholesale price index rising 7.6 percent in May versus a year ago, the fastest pace for the year. The rupee appreciated by 25 paise to 55.54 as against the US dollar during the close.

Stock specific news :

•Infosys gained 0.6 percent after the company said it has bagged a contract from Nordic retailer Dansk Supermarked.

•Oberoi Realty fell 5 percent after the company clarified that it has not yet received environmental clearance for its proposed residential project in Mulund, a central suburb of Mumbai.

•Reliance Capital closed marginally lower by 0.16 percent after the company said it has received approval from the Securities and Exchange Board of India for its proposed stake sale in Reliance Capital Asset Management