Markets trade lower, eye on inflation data

SI Reporter / Mumbai January 14, 2011, 10:59 IST - Source Business Standard

The markets continue to trade in the red on back of weak global cues and selling pressure in rate sensitives ahead of the headline inflation data for the month of December expected at noon today. The S&P CNX Nifty was down 27 points, at 5725 and the Sensex fell 84 points, at 19,098.

Metal shares were leading the losses after SAIL results dissapointed as Q3 net dipped 34% to Rs 1,107 cr. The BSE metal index was down 1.5% dragged by SAIL, down 4.8%, JSW Steel dipped 2.8% and Sesa Goa was off 1.9%.

WPI (wholesale price index) for the month of December is seen at 8.35% according to reuters poll. Rate sensitive auto and banking stocks witnessed selling pressure. From the auto pack Tata Motors and Ashok Leyland declined 3.2% and Maruti Suzuki fell 1.2%. Investors cashed out Axis Bank, down 2.9%, HDFC Bank, down 0.7% and Canara Bank, down 2.5%.

IT shares rebounded led by Infosys, up 0.6% after Goldman Sachs upgraded the stock to buy from neutral. Other rivals Wipro surged 2.1% and HCL Technologies climbed 1.7%.

Broader markets were trading in the red, midcap index was down 0.4% and smallcap index fell 0.2%.