Markets set new life high as inflation takes driving seat


Mumbai, May 15 (PTI): Key indices Sensex and Nifty today made the most of the inflation numbers as they scaled fresh life highs at 30,322 and 9,445, respectively, shrugging off fears over a potential impact of a ransomware attack.

The markets also fell back on better than expected quarterly earnings, which came as a feel-good factor.

Retail inflation rate fell sharply to a multi-year low of 2.99 per cent in April and that of WPI slipped to a four-month low of 3.85 per cent, creating headroom for the Reserve Bank to act in coming months.

The 30-share barometer jumped to an all-time high of 30,322.12, up 133.97 points, or 0.44 per cent, shattering the previous record closing of 30,250.98 touched on May 11.

The gauge had eased 63 points on Friday.

The Nifty stayed with the trend as well, which rebounded 44.50 points, or 0.47 per cent, to bring up a fresh life high of 9,445.40, surpassing the previous 9,422.40 hit on May 11.

The rupee hit a high note at 64.05 against the dollar, a fresh 21 month-high, which fuelled the upmove.
Over the weekend, the ransomware WannaCry hit systems in over 100 countries, including Russia and the UK, in one of the most widespread cyber attacks in history.

"Consumer goods sector gave impetus to the market in the opening hours against the backdrop of a positive inflation data and IMD's comment on monsoon arrival at the Andaman and Nicobar ahead of expectations. But the concerns on cyber security kept risk appetite on a leash," said Anand James, chief market strategist, Geojit Financial Services.

Another set of disappointing US economic figures and below-par Chinese output data tempered the gains.
Tata Steel stock was in the lead, up 4.35 per cent, ahead of quarterly earnings due tomorrow, followed by Dr Reddy's, which rose 3.54 per cent. Other movers were Lupin, ICICI Bank, Asian Paints, Maruti Suzuki and ONGC, gaining by up to 2.40 per cent.

Stocks of fertiliser and chemical manufacturers had a good day. Rashtriya Chemicals and Fertilizers, Chambal Fertilisers, Madras Fertilizers and FACT (Fertilisers and Chemicals Travancore) jumped by up to 3.29 per cent on forecast of a normal monsoon this year.

The BSE metal index advanced most by 2.40 per cent, followed by healthcare, realty and banking.
The BSE mid-cap ran up 1.25 per cent and small-cap 0.78 per cent.

Foreign funds continued to pump in sufficient money into Indian bourses and purchased shares worth a net Rs 841.80 crore on Friday, showed provisional data.

Other Asian indices ended mixed. So did European markets. 

  

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Title: Markets set new life high as inflation takes driving seat



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