On Thursday 07 July 2011,Bulls ran berserk over the bourses on Thursday as sustained buying activity across the board led to the benchmarks breaching their crucial resistance levels, thereby ending the session near a month's high level. Easing food inflation coupled with positive opening of European peers bolstered the momentum at Dalal Street. As India's food price index eased to seven week low at 7.61% for the week ended June 25 against 7.78% a week ago. Buoyed by the positive global cues amidst sustained buying by FIIs over the past few days, the local bourses after taking a breather resumed back their upward journey in the morning. Though the color “green” was witnessed all over the board , but sparkling were the stocks from the FMCG, Capital Goods and Realty counters. Meanwhile, leading the chart from behind were the stocks from Consumer Durable, Bankex and Public Sector Undertaking counters. Banking stocks gained little traction on the fears that RBI would increase its key interest rates a couple of times more to contain the high inflation. Annual food inflation though eased to a seven-week low, but the knock-on effects of last month's increase in diesel, kerosene and cooking gas prices are expected to nudge up food price, thereby adding to the inflationary pressure.ok
1) BSE Sensex gained 351.33 points or 1.88% and settled at 19,078.30 and NSE Nifty also closed 103.50 pints or 1.84% up and settled at 5728.95. The broader markets BSE Mid-cap index surged 1.12% while Small-cap index gained 1.08%. On the BSE Sectoral front, FMCG up 2.60%, Realty up 2.25%, Capital Goods up 2.20%, Teck up 1.71% and Oil &Gas up 1.70% were the major gainers, there were no losers.
2) On the global front, US stocks rose, posting their sixth advance in seven days, as gains in transportation and consumer- staple companies overshadowed a slowdown in service- industry growth and China's interest-rate increase. Meanwhile, The European markets are trading in green, with the France's CAC 40 up 0.45%, Germany's DAX up 0.40% and FTSE 100 up 0.31% while Asian shares ended mixed on Thursday, with Chinese bank shares rising on hopes an interest rate increase by the Chinese central bank on Wednesday may be its last this year, while a sharp decline for utilities weighed Japanese stocks.
3) Meanwhile, India's food inflation measured by the Wholesale Price Index (WPI) has moderated to 7.61% for week ended June 25 from 7.78% in previous week. This moderation in food inflation is due to the reduced prices of vegetables, pulses and potato. As per the official data, pulses became over 9% cheaper year-on-year during the period under review. Prices of vegetables also came down by 8.74%, while potatoes became 2.13% cheaper on an annual basis. This seven week low food inflation numbers is likely to come as a relief to the government, which had to deal with a series of bad news during recent weeks on the economic front.
