Sensex up 350 pts, Nifty reclaims 10,900 as BJP leads in Karnataka. Benchmark indices extended rally as the latest vote counting trend shows that BJP is leading in 112 seats, Congress in 61 seats and JDS in 45.
Market Update: Benchmark indices extended rally as the latest vote counting trend shows that BJP is leading in 112 seats, Congress in 61 seats and JDS in 45.
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The 30-share BSE Sensex was up 351.17 points or 0.99 percent at 35,907.88 and the 50-share NSE Nifty rose 93.30 points or 0.86 percent to 10,899.90.
Emkay on CPI Inflation: After a softening trend of inflation in Q4FY18, Apr’18 witnessed a sharp reversal in overall inflation, both at wholesale and retail levels. CPI inflation rose to 4.6 percent while WPI too picked up momentum with 3.2 percent print.
Core inflation increased sharply, and with currency depreciation and rise in commodity prices, the research house expects input cost inflation to also rise substantially. In the last 5 months, urban core inflation has increased at a much faster pace than rural CPI. Lower food inflation and rising rural core inflation are indicating that the rural distress has not yet abated completely.
"Rise in core inflation and increasing upward risk to overall CPI (our expectation is 5.4-5.8 percent for FY19) is likely to prompt RBI to withdraw its Aug’17 25bps rate cut. However, we expect RBI to maintain status quo in Jun’18 policy while turning slightly more hawkish."
Market Outlook: VK Vijayakumar, Chief Investment Strategist at Geojit feels if BJP succeeds in gaining simple majority that will be a major morale boost for the ruling party and very positive for the markets. It is clear from early trends that BJP is making good gains at the expense of Congress.
If this trend continues the markets will gain further strength.
But the upside will be capped because there are some major headwinds in the form of high crude prices. The middle east situation has turned very volatile following the killing of 55 Palestinians yesterday. The crude is likely to remain high or even go up. This will impact India's CAD which might touch 2.4 percent of India's GDP. Inflation will inch up and the RBI is likely to turn hawkish for June's monetary policy. These headwinds will cap the upside to the markets, he said.
The reaction to the election result will be short-term and the economic trends will dictate the direction of the market going forward, he feels.
Market Update: The market is trading strong in morning despite weakness in Asia, as the vote counting trend shows that BJP is leading in Karnataka. So far, the BJP is leading with 107 seats, Congress is leading in 62 seats and JDS in 46 seats.
Core inflation increased sharply, and with currency depreciation and rise in commodity prices, the research house expects input cost inflation to also rise substantially. In the last 5 months, urban core inflation has increased at a much faster pace than rural CPI. Lower food inflation and rising rural core inflation are indicating that the rural distress has not yet abated completely.
"Rise in core inflation and increasing upward risk to overall CPI (our expectation is 5.4-5.8 percent for FY19) is likely to prompt RBI to withdraw its Aug’17 25bps rate cut. However, we expect RBI to maintain status quo in Jun’18 policy while turning slightly more hawkish."
Market Outlook: VK Vijayakumar, Chief Investment Strategist at Geojit feels if BJP succeeds in gaining simple majority that will be a major morale boost for the ruling party and very positive for the markets. It is clear from early trends that BJP is making good gains at the expense of Congress.
If this trend continues the markets will gain further strength.
But the upside will be capped because there are some major headwinds in the form of high crude prices. The middle east situation has turned very volatile following the killing of 55 Palestinians yesterday. The crude is likely to remain high or even go up. This will impact India's CAD which might touch 2.4 percent of India's GDP. Inflation will inch up and the RBI is likely to turn hawkish for June's monetary policy. These headwinds will cap the upside to the markets, he said.
The reaction to the election result will be short-term and the economic trends will dictate the direction of the market going forward, he feels.
Market Update: The market is trading strong in morning despite weakness in Asia, as the vote counting trend shows that BJP is leading in Karnataka. So far, the BJP is leading with 107 seats, Congress is leading in 62 seats and JDS in 46 seats.
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The 30-share BSE Sensex was up 275.33 points at 35,832.04 and the 50-share NSE Nifty rose 72.60 points to 10,879.20 while the market breadth remains strong as about two shares advanced for every share falling.
HUL gains over a percent after reporting volume growth of 11 percent in Q4 and better-than-expected earnings.
The Nifty Midcap is trading in line with frontliners while all sectoral indices are in the green barring Auto.
HUL gains over a percent after reporting volume growth of 11 percent in Q4 and better-than-expected earnings.
The Nifty Midcap is trading in line with frontliners while all sectoral indices are in the green barring Auto.
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