Markets volatile after CPI, IIP data; Sensex near 61,100, Nifty 50 above 18,210; Metal outperforms; Tata Steel, Sun Pharma, Power Grid top bulls; Wipro, HDFC Bank nosedive

13 Jan 2022 , 10:17 AM

Indian markets rallied in the opening bell on Thursday, however, corrected and were broadly on a flat note. Banking, consumer durables and auto stocks weighed on the benchmarks Sensex and Nifty 50, while metal stocks outperformed counterparts. Investors traded cautiously after India’s retail inflation spiked to a 5-month high and factory output growth reached a nine-month low. Also, mixed global cues and Q3 corporate earnings influenced markets movement today.

At around 10.17 AM, Sensex was trading at 61,098.38 down by 51.66 points or 0.08%. In the early deals, Sensex gained to an intraday high of 61,348.57 but erased its earnings and even clocked the day’s low of 61,052.24.

Nifty 50 performed at 18,212.90 points flat compared to the previous closing. The index has touched an intraday high and low of 18,272.25 and 18,186.45.

Top bulls on Sensex were – Tata Steel, Sun Pharma, Power Grid, Tech Mahindra, NTPC and Infosys.

Top bears on Sensex were – Wipro (-5%) followed by HDFC Bank, Titan, Axis Bank, IndusInd Bank and Maruti Suzuki.

In terms of sectoral indices, on BSE, the Bankex and Consumer Durables index dived by 270 points and 290 points respectively, while the Auto index slipped 215 points. However, the Metal index outperformed and soared by nearly 600 points.

Companies that will be in focus due to their Q3 earnings today are – Mindtree, Tata Metaliks, Aditya Birla Money, CESC, Athena Global Technologies, Eureka Industries, Gautam Gems, GTPL Hathway, Mega Corporation, Mishtann Foods, Palm Jewels, Plastiblends India, Rotographics (India), and Surana Solar.

Unfavourable base effect pushed India’s consumer price index (CPI) or retail inflation to a five-month high at 5.59% in December 2021 compared to 4.91% in the previous month. Last year, in December, CPI stood at 4.59%. A sharp rise in food inflation and unyielding inflation in the segments like fuel and miscellaneous components – led to an uptick in the CPI.

Further, India’s Industrial Production (IIP) growth pulled back to 1.4% in November 2021 compared to 4% growth in the previous month. The quick estimates of the index stood at 128.5. The factory output is at nine months low in November this year.