Sensex trades marginally higher on mixed global cues

Mumbai: The 30-share bellwether BSE Sensex on Friday was trading marginally higher tracking mixed cues from the global stock markets.

Traders were awaiting the Wholesale Price Index (WPI) data for the month of May due on 16 June for more cues. Bloomberg estimates that WPI will be 5.3% for May, compared with 5.2% in April.

At 9.36am, the Sensex was trading higher by 0.12%, or 30.92 points, at 25,607.13, while the National Stock Exchange’s (NSE’s) broader 50-share Nifty was trading up 0.12%, or 8.90 points, at 7,658.80.

The gainers included Bharat Heavy Electricals Ltd (BHEL), which was trading up 2.7% to Rs.250.8 and Coal India Ltd, which rose 1.2% to Rs.399.85.

Among the losers, Tata Consultancy Services Ltd (TCS) fell 1.57% to Rs.2,197 and Tata Motors Ltd fell 1.17% to Rs.444.4.

The BSE realty index was the top sectoral gainer, up 1.57%. The BSE capital goods, power and consumer durables indices were up 1% each. The BSE IT and Teck indices were the top sectoral losers, down 0.83% and 0.68%, respectively.

Edelweiss Financial Services Ltd was trading at Rs.63.7 on BSE, up 6.26%, after Rakesh Jhunjhunwala acquired 1 crore shares for an average price of Rs.55 a share, according to the bulk deal information with the BSE.

State oil refiners were trading down after rising crude oil scaled nine-month highs as escalating civil war in Iraq hit risk appetite. Hindustan Petroleum Corp. Ltd (HPCL) was trading at Rs.421 on BSE, down 1.44%, Bharat Petroleum Corp. Ltd fell 1.2% to Rs.591.85, Indian Oil Corp. Ltd fell 1.6% to Rs.345.40.

India’s factory output grew at the fastest pace in 13 months, rising to 3.4% for the month of April, higher than estimated; it had declined 0.5% in March. Inflation measured by consumer price index eased to 8.3% in May from 8.6% in April as vegetable prices cooled.

Since the beginning of this year, BSE Sensex has gained 20.79%, while foreign institutional investors (FIIs) have bought $9.31 billion from local equity markets.

Asian markets were trading mixed, tracking weak cues from Wall Street after oil prices surged to an eight-month high. China’s Shanghai Composite was up 0.69% and Hong Kong’s Hang Seng were trading up 0.6% while Japan’s Nikkei Stock Average was down 0.64%.

Overnight, Wall Street indices ended lower after US economic data painted a mixed picture and Brent crude prices rose on escalating violence in Iraq after Kurdish forces took control of the Iraqi oil city of Kirkuk. Headline sales in the US rose lower than expected by 0.3% in May while Brent crude prices leapt above $113 a barrel. The S&P 500 was down 0.7%, Dow Jones Industrial Average fell 0.7% and Nasdaq Composite was down 0.8%.