Official data on Monday showed consumer inflation eased to an 18-month low while wholesale inflation registered an 8-month low.

Domestic stock markets started Tuesday’s session on a strong note, a day after macroeconomic data fuelled hopes of monetary easing by the central bank in the coming months. The Sensex jumped as much as 339 points to touch 36,192 in early trade while the Nifty hit 10,837, up 99 points from the previous close. Top gainers on the 50-scrip index were Yes Bank, Reliance Industries, Tech Mahindra, Wipro and Infosys, trading between 1.6 per cent and 2 per cent higher.
Official data on Monday showed consumer inflation eased to an 18-month low while wholesale inflation registered an 8-month low. That prompted some economists to be of view the Reserve Bank of India (RBI) would change its policy stance to “neutral” in its next policy due in February and cut the key lending rate – repo rate – in the next policy review in April.

Domestic markets also took positive cues from Asian peers, where equities pulled ahead after Beijing signalled more supportive measures to stabilise a slowing economy. Tokyo’s Nikkei rose 0.6 per cent after a market holiday on Monday while MSCI’s broadest index of Asia-Pacific shares outside Japan recovered from early losses and advanced 0.6 per cent. South Korea’s Kospi hit one-month highs.

Analysts however advised caution until more large caps announce their earnings reports.

“Instability and uncertainty are still intact in the market. Emphasis should be placed on the earnings, movement in currency and also a global market for further indications,” said Ritesh Ashar, chief strategy officer at KIFS Trade Capital.

Heavyweights Reliance Industries, Wipro and HDFC Bank are due to report their results for the October-December quarter this week.

Courtesy by : Daily Hunt