Indian equity markets started the day on a positive note but turned volatile after the release of inflation data. Markets dropped after rising to over 1% intra-day on back of selling pressure witnessed in realty and IT makers amid caution ahead of key global and local events this week and finally closed flat for the day. Auto, Banking and PSU sectors were the leading pack of gainers. While the BSE Sensex closed higher by 9 points, the NSE-Nifty closed lower by 10 points. BSE Mid Cap and the BSE Small Cap closed on a negative note.
As regards global markets, Asian indices closed in the green. European indices have opened in the green. The rupee was trading at Rs 62.7 to the dollar at the time of writing.
Wholesale price index (WPI) inflation rose at the fastest pace for six months in August, driven by an 18% jump in food prices. WPI based inflation rose to a six-month high of 6.1% in August against 5.79 in July, according to the data released by Ministry of Commerce and Industry. Food inflation stood at a massive 18.1% in August against 11.9% in July. The inflation in vegetables soared to 77.8% in August against 46.5% in the previous month. Onion prices rose by a mammoth 244.6% against 144.9%. The inflation for manufactured products eased to 1.9% against 2.8% in July. Inflation in fuel and power rose marginally to 11.3% in August from 11.3% in the previous month.
According to a leading financial daily, L&T's construction wing has received new orders worth Rs 17.9 bn across various business segments in the last two and a half months. The metallurgical and material handling business got a Rs 5.5 bn order from Northern Coalfields, a subsidiary of Coal India, for engineering, procurement and construction of coal handling package at Singrauli in Madhya Pradesh. The power transmission and distribution business secured orders worth Rs 1.2 bn from Power Grid Corporation for supply, erection, testing and commissioning of transmission towers. Additional orders worth Rs 11.2 bn have also been received from various ongoing projects of heavy civil and water and renewable energy businesses.