Indian Market Likely To Open In Positive Note On Back Of CPI

The 50-share Nifty index was open with a huge gap down on yesterday with the Nifty index taking the psychologically important 7,800 support on lower-than-expected August industrial output data. However, fall in Brent crude oil prices and intraday recovery in European stocks and US index futures aided strong recovery in the domestic market during the second half of the trading session.

BSE Sensex gained 86.69 points or 0.33% to settle at 26,384.07, its highest closing level since 9 October 2014. The index surged 145.78 points at the day's high of 26,443.16 in late trade. The index lost 204.69 points at the day's low of 26,092.69 in morning trade, its lowest level since 18 August 2014. The CNX Nifty rose 24.30 points or 0.31% to settle at 7,884.25, its highest closing level since 9 October 2014. The index hit a high of 7,901.15 in intraday trade. The index hit a low of 7,796 in intraday trade, its lowest level since 18 August 2014. The BSE Mid-Cap index gained 45.35 points or 0.48% to settle at 9,489.76, outperforming the Sensex. The BSE Small-Cap index rose 35.47 points or 0.33% to settle at 10,646.47.

After some disappointing IIP numbers there is some good news in the inflation front. Inflation measured by consumer price Index (CPI) has eased for a second straight month in September to 6.46% as against 7.8% in August. The annual rate of inflation based on the Wholesale Price Index (WPI) data will release at 12 noon today, 14 October 2014 which is expected to further decline to 3.3% in September 2014, from 3.74% in August 2014 as per street estimates.

On the global front, US stocks slumped on Monday, unable to shake off worries of a global economic slowdown and plunging crude oil prices to four years low. The Dow Jones Industrial Average climbed early after the bell, and then was down 27 points (0.2%), at 16516. The S&P 500 index fell 6 points (0.3%), to 1900. The Nasdaq Composite Index lost 24 points (0.6%), to 4252. The Stoxx Europe 600 Index was up 0.3% after stronger than expected Chinese trade data which boosted mining shares and also helped offset some investor fears of a slowdown in global growth.

Asian equity indices open mixed trend. Japan’s Topix index tumbled 2% after markets reopened from a holiday. South Korea’s Kospi was up 0.2% at 1930.82 while Australia’s S&P/ASX200 was up 0.4% at 5175.90. New Zealand’s NZX50 was down 0.8% at 5127.245. A SGX Nifty Index future is trading in positive with up by 0.47% to 7946. Today we expect Indian market likely open in positive note on back of eased in Consumer price index (CPI) numbers and better than expected result posted by Reliance Industries.