Indian Indices Turn Volatile, Inflation Eases, And Top Stocks In Action Wednesday

On Tuesday, share markets in India opened on a positive note but ended the day in red.

The BSE Sensex closed lower by 61 points to end the day at 33,857. While the broader NSE Nifty ended the day higher by 5 points to end at 10,426 levels.

Among BSE sectoral indices, IT stocks fell the most by 1.6%, followed by telecom stocks at 1.1%. TCS and Kotak Mahindra Bank were among the top losers.

Top Stocks in Action Today

HDFC share price is likely to be in focus today after the mortgage lender said that it will sell over 4% stake in its asset management arm HDFC Asset Management Co. Ltd (HDFC AMC) through an initial public offer (IPO).

Interglobe Aviation share price is among the stocks to watch today, after the aviation regulator, Directorate General of Civil Aviation (DGCA) ordered the grounding of 8 of its planes.

CPI Inflation at 4-Month Low

In the latest development, India's retail inflation fell to a 4-month low of 4.44% in February on cheaper food articles and lower cost for fuel.

Based on Consumer Price Index (CPI), retail inflation was at 5.07% in January. In February 2017, however, it was 3.65%. It was 4.88% in November last year.

Data released by the Central Statistics Office (CSO) showed that the rate of price rise in the consumer food segment was lower at 3.26% in February, as against 4.7% in the previous month.

Inflation in vegetables was 17.57% last month, down from 26.97% in January, and for fruits it was 4.8% (as against 6.24%).

Milk and its products too were less expensive with inflation print of 4.21%, cereals and products at 2.1%, meat & fish at 3.31% while for eggs the prices grew at a slower pace of 8.51%.

Retail inflation, measured by Consumer Price Index (CPI) is the main price gauge that the Reserve Bank of India (RBI) tracks. February's data is an indication that prices are at a safe distance from the apex bank's upper tolerance level of inflation at 6%.

Last month, the RBI's Monetary Policy Committee (MPC) estimated inflation at 5.1% in the quarter ended March, including the impact of house rent allowance. It also estimated the retail inflation for 2018-19 in the range of 5.1-5.6% during April-September and 4.5-4.6% in the second half of the year.

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Disclaimer: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment ...

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