 "Sensex bounces back on hopes of low WPI; Coal India up 5%")
The market has opened in the positive terrain. The Sensex is up 89.23 points at 21122.11, and the Nifty adds 24.10 points at 6265.95.
After retail inflation in December eased to a three-month low on Monday, traders are eyeing December wholesale price inflation, seen at 7 percent and due today.
With a gain of 5 percent, Coal India is biggest gainer in the Sensex, followed by TCS , Sesa Sterlite and Cipla .
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Among the top losers are HDFC , GAIL , HUL , Infosys and ITC .
Abhay Laijawala of Deutsche Equities is positive on market expecting that record selling by domestic institutional investors is close to an end due to an end in redemption pressure on insurance companies. “A pro-active approach from the RBI should lend stability to rupee. Risks to this hypothesis include fractured election mandate and and taper-related volatility, which could impact flows,” he says.
The rupee slipped in the early trade on Wednesday. It has opened lower by 13 paise at 61.65 per dollar as against previous day’s closing value of 61.52 to the dollar. The dollar rallied over a percent versus the yen to 104 levels. The dollar index rose to 80.70.
Wall Street celebrates upbeat retail sales with the markets giving their strongest performance this Year. Europe closed flat while Asia is bouncing back with Japan’s Nikkei gaining more than a percent.
Stocks in news:
Coal India shares rise 5 percent after the company on Tuesday said it will pay an interim dividend of 29 rupees a share, or 183.2 billion rupees, in the current fiscal year.
Currently, Coal India January future is trading at a discount of Rs12.85/share. The given discount was in anticipation of the dividend expected during the month. However, the total dividend exceeds 10 percent of the current market value. Hence, the futures and options segment is likely to react differently," says ICICI Direct in a report.
BSE metals index rises 1.3 percent - top sectoral gainer; FMCG index flat in trade and currently sits at the bottom of the sectoral pack