Wholesale price inflation too dips to 9-month low of 4.68%
15 March 2014 6:18 AM IST
Inflation based on movement in the Wholesale Price Index (WPI) came down to 4.68 per cent in February, from 7.28 per cent a year ago. It was 5.05 per cent in January 2014.
‘Need to watch inflation carefully... Happy that overall inflation is coming down,’ Finance Minister P Chidambaram said while expressing satisfaction over improvement in the price situation ahead of the general elections. Food inflation, which has been a major cause of concern for the government, dropped to 8.12 per cent in February, compared to 8.8 per cent in January as the rate of price rise slowed in almost all items, except fruits, rice and milk.
Inflation, which is on decline since December, was 5.05 per cent in January. Prior to February, the lowest WPI was recorded in May 2013 at 4.58 per cent. In June, it had inched up again to 5.16 per cent. As per the data released on Thursday, rate of price rise for onions — on annual basis — contracted 20.06 per cent in February. Similarly rate of price rise in potato slowed to 8.36 per cent.
inflation in the vegetable basket dropped to 3.99 per cent, from 16.6 per cent in January. There was also a drop in prices of pulses, cereals and wheat. However, fruits, milk and other protein-rich items like egg, fish and meat became costlier in February compared to the previous month.
Inflation in the manufactured items, like sugar and edible items, was 2.76 same as in January. Commenting on the fall in WPI inflation, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, ‘This is clearly good news. It shows that this area (price situation) which was not an area that we were comfortable, is now getting into more comfortable range.’
Price nos help Sensex to bounce back, end 35 up
Mumbai: The Bombay Stock Exchange benchmark Sensex on Friday erased initial losses to end higher by 35 points at 21,809.80 on fag-end value buying by funds in blue-chip stocks, mainly in capital goods and realty sectors, amid inflation softening to nine-month low of 4.68 per cent in February. After losing 144 points in early trade, the Sensex bounced back to close higher by 35.19 points, or 0.16 per cent, at 21,809.80. It had lost 81.61 points in the previous session.
The National Stock Exchange index Nifty improved by 11.10 points, or 0.17 per cent, to 6,504.20, after touching a low of 6,432.70. Marketmen said stocks recovered in the last one-hour on value buying in blue-chips available at attractive levels. The upsurge was supported by reports that the inflation fell to nine-month low of 4.68 per cent in February, raising hopes that Reserve Bank of India will cut interest rate.
In 30-BSE index components, 15 stocks gained and 14 ended with losses. Tata Power held steady at Rs 83.15. Major gainers were Dr Reddy’s Labs, Sun Pharma, Reliance Industries, Hero MotoCorp, Infosys, Larsen and Toubro, Mahindra and Mahindra, BHEL and Cipla.
The capital goods sector index gained the most by rising 1.85 per cent to 11,609.65 followed by realty sector by one per cent to 1,387.68. Auto index rose by 0.94 per cent to 12,808.16 and healthcaare by 0.81 per cent to 10,196.57. Of the 30 Sensex stocks, 15 ended higher, 14 declined and Tata Power ruled steady. Among sectoral indices, consumer goods was up by 1.85 per cent, followed by Realty 1.00 per cent, Auto 0.94 per cent and healthcare 0.81 per cent, while Bankex fell by 0.68 per cent and Teck 0.56 per cent.
Total market breadth remained negative as 1,550 stocks ended in the red, while 1,207 concluded in the green. Total turnover dropped to Rs 2,252.51 crore from Rs 2,718.68 crore on Thursday Asian stocks closed down led by Japanese stocks on concern over China’s economy faltering. Key indices in China, South Korea, Taiwan, Hong Kong, Japan and Singapore ended weak between 0.25 pct and 3.30 pct.
‘Need to watch inflation carefully... Happy that overall inflation is coming down,’ Finance Minister P Chidambaram said while expressing satisfaction over improvement in the price situation ahead of the general elections. Food inflation, which has been a major cause of concern for the government, dropped to 8.12 per cent in February, compared to 8.8 per cent in January as the rate of price rise slowed in almost all items, except fruits, rice and milk.
Inflation, which is on decline since December, was 5.05 per cent in January. Prior to February, the lowest WPI was recorded in May 2013 at 4.58 per cent. In June, it had inched up again to 5.16 per cent. As per the data released on Thursday, rate of price rise for onions — on annual basis — contracted 20.06 per cent in February. Similarly rate of price rise in potato slowed to 8.36 per cent.
inflation in the vegetable basket dropped to 3.99 per cent, from 16.6 per cent in January. There was also a drop in prices of pulses, cereals and wheat. However, fruits, milk and other protein-rich items like egg, fish and meat became costlier in February compared to the previous month.
Inflation in the manufactured items, like sugar and edible items, was 2.76 same as in January. Commenting on the fall in WPI inflation, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, ‘This is clearly good news. It shows that this area (price situation) which was not an area that we were comfortable, is now getting into more comfortable range.’
Price nos help Sensex to bounce back, end 35 up
Mumbai: The Bombay Stock Exchange benchmark Sensex on Friday erased initial losses to end higher by 35 points at 21,809.80 on fag-end value buying by funds in blue-chip stocks, mainly in capital goods and realty sectors, amid inflation softening to nine-month low of 4.68 per cent in February. After losing 144 points in early trade, the Sensex bounced back to close higher by 35.19 points, or 0.16 per cent, at 21,809.80. It had lost 81.61 points in the previous session.
The National Stock Exchange index Nifty improved by 11.10 points, or 0.17 per cent, to 6,504.20, after touching a low of 6,432.70. Marketmen said stocks recovered in the last one-hour on value buying in blue-chips available at attractive levels. The upsurge was supported by reports that the inflation fell to nine-month low of 4.68 per cent in February, raising hopes that Reserve Bank of India will cut interest rate.
In 30-BSE index components, 15 stocks gained and 14 ended with losses. Tata Power held steady at Rs 83.15. Major gainers were Dr Reddy’s Labs, Sun Pharma, Reliance Industries, Hero MotoCorp, Infosys, Larsen and Toubro, Mahindra and Mahindra, BHEL and Cipla.
The capital goods sector index gained the most by rising 1.85 per cent to 11,609.65 followed by realty sector by one per cent to 1,387.68. Auto index rose by 0.94 per cent to 12,808.16 and healthcaare by 0.81 per cent to 10,196.57. Of the 30 Sensex stocks, 15 ended higher, 14 declined and Tata Power ruled steady. Among sectoral indices, consumer goods was up by 1.85 per cent, followed by Realty 1.00 per cent, Auto 0.94 per cent and healthcare 0.81 per cent, while Bankex fell by 0.68 per cent and Teck 0.56 per cent.
Total market breadth remained negative as 1,550 stocks ended in the red, while 1,207 concluded in the green. Total turnover dropped to Rs 2,252.51 crore from Rs 2,718.68 crore on Thursday Asian stocks closed down led by Japanese stocks on concern over China’s economy faltering. Key indices in China, South Korea, Taiwan, Hong Kong, Japan and Singapore ended weak between 0.25 pct and 3.30 pct.
Next Story
