Benchmark indices bewildered, CPI and WPI moderately higher
Continuing with the optimism shown on Friday, the Indian stock markets opened Monday’s session on a positive note but witnessed range-bound volatility during the day. Indian benchmark indices could not sustain the upsurge and were inclined southwards for most of the day. Bounce back in the Indian rupee by 50 paise and Brent oil by 40 paise brought in some pessimism in the markets.
The country reported WPI and CPI inflation where WPI grew 5.13 per cent in September as against 4.53 per cent in August and 2.6 per cent in the corresponding month of last year. This was amid a rise in fuel prices which along with power grew at 16.65 per cent. The country also witnessed a revival in food prices to 0.14 per cent after a fall of from 2.25 per cent in August.
Moreover, the retail inflation too rose moderately to 3.77 per cent as against 3.69 per cent in the previous month. The slower pace of inflation in food which accounts for almost 50 per cent of CPI have curbed a rise in imports amid rupee depreciation.
All in all, market sentiments still show hesitation for bullish reversal because the aforesaid conditions would force RBI to hike interest rates sooner. We hold 10,520 closing and 10,750 as the resistance levels while 10435 closing followed by 10375-10335 as the supports for now.