Commodity Online
MUMBAI : The stock markets responded positively to the cooling off inflation rate, which fell to 2.43% for the week ended February 28 as the FMCG and Oil and Gas index rise on the bourses today.

The inflation rate has touched a six year low, the lowest since 2002. The fall was mainly attributed to the decline in food, manufacturing, fuel and electronic goods.

Prices of food crops such as maize, arhar and moong had declined by 1% each during the week, while prices of fuel had remained unchanged at the previous week's level.

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As fallout of the fall in the prices of the food crop, the FMGC stocks witnessed a rise on the stock markets today. During the day FMCG majors including ITC Ltd and Hindustan Uniliver Ltd rose significantly on the BSE.

BSE FMCG index was up by 3.16% at 1859.47 during the afternoon trading session.

HUL was trading up by 4.34% at Rs.225.90, while ITC ltd was up by 3.67% at Rs.164 in the afternoon trading sessions. Nestle India Ltd was trading at Rs.1462 up by 2.18% in the afternoon trading hours.

Other major gainers on the BSE today were the oil & gas companies. BSE oil & gas index rose by 2.66% at 5783.50. Public sector major, ONGC Ltd was up by 2.22% at Rs.680.50, while private sector giant Reliance Industries Ltd rose by close to 4% to Rs.1199.80.

However, the constant decline in the inflation rate may raise concerns for the RBI. Experts believed that the central bank may take necessary steps to check this. Prices of steel ingots, batteries and nylon yarn had declined during the week.

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