The BSE Sensex pared losses quite nicely in second half of trade to close marginally lower following a sharp bounce back in European markets. The index recovered more than 150 points from intraday low of 17,026.97, before closing with a loss of 26.43 points at 17,197.93,
The BSE Sensex pared losses quite nicely in second half of trade to close marginally lower following a sharp bounce back in European markets. The index recovered more than 150 points from intraday low of 17,026.97, before closing with a loss of 26.43 points at 17,197.93.
Meanwhile, the NSE Nifty managed to claw back above the important level of 5200 led by support from oil & gas, technology, capital goods and HDFC group stocks. The index fell 12.05 points to 5,215.70.
Mithil Pradhan, Sr Vice President - Technicals & Derivatives, Violet Arch Capital Advisors believes that upsides are really restricted at this point of time because the weakly and monthly charts both are overbought from a momentum perspective.
European markets like France's CAC, Germany's DAX and Britain's FTSE gradually rose to 1-1.5% since initial trade today, erasing most of the previous day's pull-back and resuming a week-long rally as investors judged the European Central Bank remains committed to bold action to fight the debt crisis.
Markets were also awaiting US jobs data that could fuel expectations of further stimulus from the Federal Reserve. The Dow Jones futures gained 68 points at 15:31 hours IST.
European shares had tanked 1-2.7% on Thursday after European Central Bank President Mario Draghi disappointed some investors by announcing no immediate action to help lower the borrowing costs of Spain and Italy. Spain and Italy markets tumbled around 5% yesterday.
Back home, the Sensex and Nifty gained more than 2% on inflow of foreign money. Foreign institutional investors bought more than Rs 3,000 crore worth of Indian equities since July 27.
The market gained this week, even after getting disappointed by three major events, which were RBI policy on Tuesday, Federal Reserve' decision on Wednesday and European Central Bank on Thursday.
Housing finance company HDFC and private sector lender HDFC Bank gained 0.5-1%.
Top oil & gas producers Reliance Industries and ONGC moved up 0.5% and 1.34%, respectively.
Country's largest power producer NTPC gained 1.84%, rising for the second consecutive session after yesterday's rally of nearly 4% while private power producer Tata Power declined 0.92%.
Top software services exporter TCS and Infosys were marginally higher while their rival Wipro rallied 2%.
India's largest lenders State Bank of India and ICICI Bank were down 2% and 0.5%, respectively. Engineering and construction major Larsen & Tourbo slipped 0.5% whereas power equipment manufacturer gained 0.7%.
Metals stocks hit quite hard on ECB disappointment. Hindalco Industries, Sterlite Industries, Jindal Steel and Tata Steel tanked 2%-2.6%.
Among auto stocks, Tata Motors, Bajaj Auto, Maruti Suzuki and Hero Motocorp were down 0.4-1%. Tractor maker Mahindra & Mahindra fell 1.44% on fears of less buying of tractors due to monsoon deficiency.
DS Pai, Director-Long Range Forecast, India Met Department (IMD) highlighted that rainfall in India is 19% deficient so far because the monsoon didn’t pan out as per expectations in July. Further, he said that the rainfall in the next two months is expected to be below normal and around 91%.
Cigarette major ITC and top telecom operator Bharti Airtel slipped over 0.7%.
The broader markets too closed flat. On the National Stock Exchange, decliners outnumbered advancers by 849 to 577.
In the second line shares, Mahindra Satyam gained more than 6% and Berger Paints rose 5% after better than expected numbers in first quarter. Jet Airways went up 0.7% as the company turned profitable for the first time in last six quarters. Marico declined 3% on profit booking; its results in Q1 were quite stronger than expected on every count.
Sugar stocks like Balrampur Chini, Bajaj Hindusthan and Shree Renuka Sugars were up 3-5%.
DB Corp rose 7% and Deccan Chronicle Holdings was up nearly 2% as sources say DB Corp is in talks to acquire DCHL’s print business.
United Breweries Holdings and United Spirits were up 1.5%. OnMobile Global surged over 9%.
Dishman Pharma and Kale Consultants rallied more than 5% while both shot up 25% this week on better than expected numbers in Q1.
However, GVK Power, Reliance Power, NCC, REC, Pantaloon Retail, S Kumars and Indiabulls Real were down 3-5%.
(With inputs from CNBC)
At 14:22 hours IST: Indian, European stocks recover; Jet Air turns PAT positive
European and Indian shares shares staged a slight recovery on Friday from a selloff provoked by the European Central Bank's failure to satisfy investors' hopes of swift action to tackle the debt crisis.
The ECB kept rates unchanged and dashed hopes of any immediate action to ease the borrowing costs of Spain and Italy by indicating it may resume buying bonds but only under conditions that would delay any move until at least September.
The Sensex was down 88.84 points or 0.52% at 17135.52, and the Nifty lost 29.50 points or 0.56% at 5198.25. About 1130 shares advanced, 1497 shares declined, and 812 shares remain unchanged.
The euro was under pressure but traded around $1.22, up 0.15 percent, having fallen nearly three cents to $1.2133 on disappointment over the ECB's decision.
The services sectors in emerging powerhouses China and India grew in July at a healthy pace, providing vital support for the two economies as their manufacturing sectors struggle with the global downturn.
China's official purchasing managers' index (PMI) for the services sector fell to 55.6 in July from 56.7 in June, while a similar private-sector survey sponsored by HSBC headed in the opposite direction, rising to 53.1 from a 10-month low in June of 52.3.
India's non-manufacturing PMI from HSBC was little changed, slipping to 54.2 in July from 54.3 in June.
Shares in state-run banks fall on concerns a looming drought would increase defaults of farm loans, leading to higher provisioning in coming quarters.
Top-ranked State Bank of India falls 1%, while Oriental Bank of Commerce drops 2.2% and Allahabad Bank retreats 1.5%.
"If government declares drought in most of the states, then there will be rescheduling of repayment of crop loans, which accounts for a significant portion of total agri portfolio of the state-run banks," Manish Ostwal, sector analyst at KR Choksey said.
Tractor maker Mahindra & Mahindra shares fall 1.7% as the growing likelihood of a drought in India threatens to hit rural sales.
Mahindra & Mahindra already saw tractor sales fall 2.4% from the previous month and 4.5% on a year-to-year basis.
After five straight quarterly losses, Jet Airways has reported a net profit of Rs 24.70 crore for the April-June period on improved yields and cost cutting measures. The country's largest private airline said if not for a forex loss of Rs 69 crore, it would have posted better results.