The BSE Sensex today advanced by 55 points as gains in pharma, banking and IT stocks helped the barometer extend its winning streak for a sixth session even as investors turned cautious due to a spike in inflation and losses in global markets after weak Chinese economic data.
The 30—share barometer closed at 32,241.93, showing net gains of 55.52 points or 0.17 per cent —— a closing level not seen since August 7 when it ended at 32,273.67.
It moved erratically between 32,328.61 and 32,186.84 in day trade.
The broader Nifty closed higher by 7.30 points or 0.07 per cent at 10,086.60 in a volatile trade. It shuttled between 10,126.50 and 10,070.35 during the day.
Persistent buying by domestic institutional investors and retail investors kept the momentum for indices, brokers said.
Investors turned cautious after wholesale inflation rose to a four—month high of 3.24 per cent in August as prices of food articles, led by onions and vegetables soared, dashing hopes of rate cut by the RBI.
The Sensex had gained 524.44 points in the previous five days on firm global cues on receding concerns about North Korea and sustained buying by domestic investors.
Among pharma stocks, Sun Pharma, Cipla and Lupin rose up to 4.24 per cent. Axis Bank and ICICI Bank rose up to 4 per cent helping the Sensex to settle at over one month high level.
Inflation worries
Wholesale price inflation rose to 3.24 per cent from a year ago, its fastest pace in four months, driven by higher prices of food and fuel products, data showed. The rise compares with a 3.0 per cent increase forecast by economists in a Reuters poll and a provisional 1.88 per cent rise in July. Wholesale food prices in August rose 4.41 per cent on year, compared with a 2.12 per cent rise a month earlier, government data showed on Thursday.
The final print of June WPI inflation remained unchanged from provisional estimate of 0.90 per cent.
Data released earlier this week showed retail inflation rose to a five-month high of 3.36 per cent in August due to costlier vegetables and fruits.
Also industrial production grew by just 1.2 per cent in July from 4.5 per cent a year ago, bearing the brunt of a dismal show of the manufacturing sector.
Last month, the Reserve Bank cut policy repo rate by 0.25 per cent to 6 per cent citing reduction in inflation risk. The rate cut was the first in 10 months and brought policy rates to near 7-year low.
The RBI said it will endeavour to keep retail inflation close to 4 per cent but in the near term, there might be some uptick on account of pay commission payouts and price adjustments post GST rollout from July 1.
Top Sensex gainers : Axis Bank (4.2%), Sun Pharma (4.24%), Tata Motors (+3.6%), Adani Ports (+3.4%), Dr Reddy's (1.8%) and Cipla (1.89%).
Top Sensex losers : Wipro (-4.1%), Kotak Bank (-1.17%), ONGC (-1.12%), M&M (-1.06%) and Bharti Airtel (-0.70%).
Meanwhile, DIIs bought shares worth a net Rs 725.90 crore yesterday, as per provisional data.
Shares of Bharat Heavy Electricals Ltd rose as much as 10.2 per cent after Japanese Prime Minister Shinzo Abe said it would make rolling stock for the Mumbai-Ahmedabad bullet train. The stock ended 3.66 per cent higher at Rs 137.40 on the BSE.
State oil marketing companies pared gains after the government said it had not asked fuel retailers to absorb future rate increases.
Reliance Communications Ltd slipped as much as 2.3 per cent after the India unit of Swedish telecom equipment maker Ericsson filed an insolvency case against it and two units.
Global markets
European shares inched lower in opening deals on Thursday, weighed down by weaker mining stocks, while Munich RE shrugged off a profit warning. The pan-European STOXX 600 index was down 0.1 percent, with the basic resources sector taking most points off the index as a decline in industrial metals and disappointing data from China hit shares in heavyweight miners Rio Tinto , Glencore and BHP Billiton.
Munich RE was up 0.1 percent. The German reinsurance company said it could miss its profit target this year due to losses from hurricanes Harvey and Irma.
Among outstanding gainers was Next up 8 per cent, after the British clothing retailer nudged its full-year sales and profit guidance higher.
UK's FTSE fell 0.1 per cent ahead of the Bank of England policy meeting later in the day.