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Sensex ends flat, inflation heads towards zero

March 19, 2009

INDIA STOCKS/CLOSEThe Sensex closed 25 points up on Thursday after paring early gains, as worries about the economy and political uncertainty weighed on investor confidence.

The benchmark gained 1.2 percent in early trade, but lost ground on profit taking and closed at 9,001.

Top Sensex gainers included Sun Pharma, HDFC and Sterlite Industries, which rose in the range of 2.3 to 4.1 percent.

The BSE Realty Index was the best performer amongst sectors, ending 2.4 percent higher.

Among the star performers were Mindtree Ltd, which rose 32 percent, NIIT, which climbed 15.8 percent, and Akruti City which gained 10.7 percent after yesterday’s rise of 27.5 percent.

Data released today showed inflation heading towards zero in early March and analysts tipped it would soon turn negative, opening the way for the RBI to cut rates further to stimulate growth.

INDIA/

Positive news came in from the Plan Panel too, with its deputy-chief saying low inflation rate would enable policy makers to take more steps to stimulate a slowing economy.

Can one now expect the Sensex to rally tomorrow on positive economic data and end the week with smart gains?

Comments

Sensex’s own movement is as cautious as any investor ought to be. Sensex moved +25 points,and clearly it is not promising any dramatic changes.

The state of economy and politics are causing a worry.We are hoping for a steady day tomorrow.Markets could make its next big move towards the month end as Institutional funds may like to shore up their portfolio valuation.

Posted by A.Kapoor | Report as abusive
 

Is this decline in WPI in anyway related to consumer spending ?? the CPI i read is still at 9%..I think CPI is what matters the most..

Posted by Anitha | Report as abusive
 

Yes.CPI is what concerns common people.Please read accompanying comments on “Inflation down but reforms needed..”

Posted by A.Kapoor | Report as abusive
 

Mr Kapoor, as we discussed yesterday..political uncertainty weighed on investor sentiments.. let’s hope tomo is a better day and we end the week on a positive note!!

Posted by Aditya | Report as abusive
 

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