Backed by persistent buying in index heavyweights Indian share markets continued to trade well above the dotted line in the last two trading hours. Barring banking all the sectoral indices are trading in the positive with IT and realty stocks leading the pack of gainers.
Majority of the engineering stocks are trading mixed with TRF and Thermax trading the strongest and Jain Irrigation and Engineers India trading the weakest. As per a leading financial daily, Larsen & Toubro (L&T) has announced that it will be contributing Rs 171 bn towards the equity financing of the infrastructure projects announced by its group companies L&T Infrastructure Development Ltd, L&T Power Development Ltd and L&T Metro. The total value of the projects stands at Rs 844 bn. Reportedly; L&T has an order book position of Rs 1531 bn at the end of June 2012 quarter with orders well divided between government, private and in -house captive consumers. The stock is marginally up.
Retail inflation numbers - measured by the consumer price index (CPI) - for the month of July 2012 were announced a while ago. As reported by the Economic Times, inflation marginally declined to 9.86% during the month. The decline was largely due to lower prices of spices, cereals and its products. However, vegetable prices remained high during the month, up by 27% YoY. Edible oil prices were higher by 17.4%, while sugar was dearer by over 9% YoY. As for the overall inflation rates in urban and rural areas, the rate remained higher for the former at 10.1%. Inflation rate in the rural area stood at 9.76%. The retail inflation trend is the opposite to that of the headline inflation figure - measured by the Wholesale Price Index (WPI) - which had declined to 6.87% in July as the rate of price rise of the food articles category eased a little. During the preceding month i.e. June 2012, WPI inflation stood at 7.25%. It is also reported that inflation, based on the CPI, was revised downwards to 9.93% from the earlier estimate of 10% for the month of June 2012.