Indian share markets recovered in the afternoon session to finish marginally lower amid mixed international markets. At the closing bell yesterday, the BSE Sensex closed lower by 21 points and the NSE Nifty finished lower by 16 points. The S&P BSE Mid Cap finished up by 0.3% while S&P BSE Small Cap finished up by 0.1%.

Losses were largely seen in realty stocks, oil & gas stocks and metal stocks. Bank stocks and consumer durables’ stocks witnessed majority of the buying momentum.

WPI Inflation Eases

Continuing its easing trend for the third straight month, India’s inflation on wholesale level softened in the month of February, with a sustained dip in food articles prices.

The fall in non-food articles prices also supported the wholesale price inflation (WPI) to come in line with the lower retail inflation.

According to the latest data released by the government, WPI stood at 2.48% (provisional) in February as against 2.84% (provisional) for the previous month and 5.51% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.30% compared to a build-up rate of 4.92% in the corresponding period of the previous year.

Component wise, primary articles index having weight of 22.62%, dropped 1.3% to 128.0 (provisional) in February from 129.7 (provisional) for the previous month.

CARE Ratings believes that food prices will remain stable for the coming months. However, as per the reports inflation may witness a uptick due to rise in global oil prices, unseasonal weather patterns, hike in Minimum Support Price (MSP) for select crops and probability of increase in prices of commodity due to trade tariffs.

Top Stocks to Watch Out

Bharti Airtel share price is expected to witness some action in today’s trade after the company’s committee of directors has approved the allotment of 30,000 debentures, for raising about Rs 30 billion on private placement basis. The proceeds of the issue would be used for general corporate purpose including routine treasury activities and refinancing of existing debt and spectrum liabilities.

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