Sensex snaps two-day losing run

Major headlines

Food inflation eases to 10.05%

Entertainment Networks India jumps as Copyright Board reduces royalties; the stock ends 9.31% higher

CCL International board approves stock split; the stock closes 5.50% lower



Global signals

European shares rose on Thursday, bouncing back from a five-week low in the previous session after Credit Agricole and L’Oreal posted forecast beating results that boosted the market sentiments.

Major Asian indices ended the session mixed. Indices like Hang Seng, Straits Times and Kospi closed marginally lower, while Nikkei, Shanghai Composite and Jakarta Composite shut higher.

The US stock index futures signal flat opening on the Wall Street today. Weekly jobless claims data along with Federal Reserve Bank of Kansas City's monthly manufacturing index for August and Chicago Federal Reserve Bank's Midwest manufacturing data for July will be in focus.

Indian indices

Bears took a breather as domestic indices climbed for the first time in three days. It was a quiet session for Indian markets on the day of F&O expiry with bouts of volatility in the late trades. The domestic markets witnessed volatility as the indices, which got lifted at the start due to supportive global cues, fell owing to a sudden sell-off in sectors like realty, auto and information technology and also in certain frontline stocks and then recovered to close flat.

Food inflation softened to 10.05% for the week ended August 14, 2010 as compared to 10.35% in the previous week.

Tata Steel, the biggest producer of the alloy, climbed for the first time in three days. Steel companies may raise prices next month on optimism that consumption will increase during the festival season, which starts in September and as monsoon tapers off, Steel Authority of India Chairman CS Verma had said. Mahindra & Mahindra, the largest maker of sport-utility vehicles, gained as the company expects to complete the purchase of a stake in Ssangyong Motor Company in four months. Index heavyweight Reliance Industries continued to drift lower.

The Sensex started the session 15 points higher at 18195. The index extended gain in early trades. The Sensex remained rangebound in a lacklustre morning session. In the afternoon session, the index widened its morning gains to hit the day’s high of 18261 as the European markets opened in the positive zone. As the session progressed, the Sensex witnessed volatility and slipped into the negative territory for brief period to hit the day’s low of 18159. However, from that level, buying was seen in heavyweights that led the index back into the green. Finally amid volatility, the Sensex ended the session with modest gains.

At the closing bell, the Sensex shut at 18226, 47 points higher. The Nifty closed at 5478, up by 16 points.

Bond market update: India’s 10-year bonds were little changed before tomorrow’s sale of Rs120 billion ($2.6 billion) of notes.

Market Outlook: US Data to be announced tonight - weekly jobless claim

Market sentiment

Despite of domestic indices closing in the green, the market breadth was negative as declining stocks outnumbered the advancing ones. Of the 3,034 scrips traded on BSE, 1,588 scrips fell while 1,328 scrips rose. Hundred and eighteen shares remained unchanged.

Sectoral & stock screening

Of the 13 sectoral indices on the BSE, seven of the sectors ended in the green, while six closed in the red. The sectors that rose the most were - BSE Fast Moving Consumer Goods (FMCG) surged by 1.16%, followed by the BSE Power that gained by 0.89%. The rest of the gaining sectors were up in the range of 0.15% to 0.66%. The losing sectors were - BSE Oil & Gas lost by 0.61%, BSE Realty declined by 0.50% and BSE Consumer Durables (CD) fell by 0.43%, while BSE Health Care (HC), BSE Metal and BSE Information Technology (IT) were down marginally.

Among 'A' group stocks, Crompton Greaves was the topper, up by 5.82%, followed by Nestle India that was up by 3.69% and Central Bank of India that rose by 2.86%. On losers' list - Tech Mahindra fell the most by 3.28%, followed by Indiabulls Real Estate that declined by 3.06% and Adani Enterprises that slipped by 2.95%.

Viewing volumes

Pharma company - Piramal Healthcare was the most traded stock for the second straight day with over 1.06 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.41 crore shares), India’s second largest developer - Unitech (0.38 crore shares), leading integrated steel makers - Ispat Industries (0.25 crore shares) and Vedanta group flagship company - Sterlite Industries (0.20 crore shares).