Indian share markets pared losses but continued to trade in the red in the post-noon trading session. Majority of the sectoral indices are trading in the red with realty and IT stocks being the biggest losers. Power and banking are among the few stocks trading in the green.
The Wholesale Price Index (WPI) inflation for the month of September has declined to a 5-year low of 2.38% as against 3.7% in August. The fall has come on account of the Food Price Index that fell steeply to 3.52% from 5.15% in August and the fuel and power inflation that came down to 1.33% as compared to 4.54% in August. Even retail inflation as measured by the consumer price index (CPI) dropped to its lowest level since the time it was launched in 2012. The consumer inflation decreased to 6.46% in September from 7.8% in August backed by sharp decline in vegetable inflation and high base effect of last year. Falling inflation levels have set the tone for the RBI to cut interest rates particularly after growth in industrial production remained low for the second month in a row in August.
Mining stocks are trading on a mixed note today. Gainers are being led by Gujarat NRE Coke, while Sesa Sterlite is trading on a weak note. As per a leading business daily, government has asked Coal India to cancel the auction of three coal blocks that were offered to final bidders. Under the previous government of UPA, the blocks were offered for captive use to steel, cement and sponge iron companies. While two blocks were in Jharkhand, the third one is in West Bengal. There were 44 parties that showed interest in these three blocks and two had finally bid for the same. This move comes after Supreme Court's direction for cancellation of number of blocks that had serious technical glitches. The stock of Coal India is trading higher by 0.7% at the time of writing.