Indian markets slips into red

Mon, 16 Dec 01:30 pm

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Backed by unhealthy inflation data Indian markets have turned into red during the post noon trading session. Barring stocks from healthcare sector all the sectoral indices are trading in red. Stocks from oil and gas and consumer durables are among leading losers

BSE-Sensex is down by 22 points and NSE-Nifty is trading down by 11 points. While BSE Mid Cap is trading down by 0.03%, BSE Small Cap index is trading down by 0.08%. The rupee is trading at 62.02 to the US dollar.

As per a leading financial daily, Wholesale Price Inflation (WPI) for the month of November jumped to a 14-month high of 7.5% on a YoY basis after rising by 7% YoY in October. The steep escalation has been on account of food prices that rose by 19.9% YoY in November, faster than 18.2% rise in October. Burgeoning food prices have pushed retail inflation to its highest level of 11.2% in November as per Government data. While current account deficit has narrowed down significantly after imposition of curbs on gold imports, inflation continues to rule high. This is likely to put the Reserve Bank of India in a fix with respect to reduction in interest rates, a measure desperatly awaited by Corporate India to revive from slowdown.

Most of the Telecom stocks are trading in red with Tata communications and Reliance communications being among the leading losers. According to a leading financial news daily, the hearing for additional spectrum on the chairman and managing director of Bharti Airtel, Sunil Mital and Essar group promoter Ravi Ruia has been postponed till 20th Feb 2014, which was earlier scheduled for today. Reportedly, Special CBI Judge O.P Saini adjourned today's proceedings on the back of stay granted by the Supreme Court on separate pleas filed by Mittal and Ruia, challenging the March 19 order of the trial court which summoned them as accused for the case. The said litigation was filed by the Department of Telecommunications (DoT)accusing three telecom operators for allocating additional spectrum which had allegedly resulted in a loss of Rs 846 crore to the exchequer. The CBI, in its charge sheet, had named Shyamal Ghosh (the former telecom secretary) and the three telecom companies as accused in the case. Bharti is currently trading down by 0.72%.