Markets remain weak post WPI numbers; Metal shares drag

Markets are trading weak in the noon trades with Sensex slipping below its important level of 28,500 after the WPI inflation for the month February contracted further to -2.06% amid falling crude oil prices compared to -0.39% in January, indicating deflationary trends.

Meanwhile, investors remain cautious ahead of the two-day US Federal Reserve meet which begins on Tuesday.

At 12.55 PM, the Sensex is lower by 73 points at 28,430 and the Nifty has dipped 22 points at 8,626.


The rupee rose by six paise at 62.91 against the US dollar on Monday at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.


Oil prices fell on Monday, with U.S. crude dropping nearly 3 percent to a six-year low as the dollar hit fresh highs and spare oil storage capacity runs low around the world.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 66.98 crore on Friday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 71.55 crore on Friday, as per provisional data.


On the sectoral front, BSE Metal, Powe, FMCG, Oil & Gas indices are down up to 1.5%. However, BSE Realty, IT indices are up between 0.5-1%.

State Bank of India said that the Executive Committee of Central Board (EGOS) of the Bank, in its meeting held on March 13, 2015, has accorded its approval to fix the issue price at Rs 295.59 per share of face value of Re.1/-, including a premium of Rs 294.59 per share, and accordingly, to issue 10,04,77,012 equity shares, ranking pari-passu with the existing equity shares of the bank in all respects, on preferential basis to GoI, for a consideration of Rs. 2970 crore. The stock is up 0.2%.

Metal shares are reeling under selling pressure as growth in China’s fiscal revenue cooled to its slowest in at least a year between January and February as China’s foundering economy dampened tax collection and other key sources of government income. Sesa Sterlite, Hindalco, Tata Steel are down up to 4%.

IT stocks are trading firm with TCS, Wipro and Infosys gaining up to nearly 2%.

Wipro Infotech is planning to launch business process outsourcing (BPO) services in India with a focus on transaction processing.

Infosys is merging its successful core banking product Finacle with its products and platforms subsidiary Edgeverve Systems that was established last year.

Shares of Bajaj Auto rallies on hope that it will introduce its earlier scooter brand Bajaj Chetak in the market. The stock is up 1%.

Tata Motors expects about 10-15 per cent growth in its commercial vehicles sales during next fiscal. The stock is up 0.5%.

Oil and Gas majors Reliance and ONGC are trading lower up to 0.65 on slide in crude oil prices.