Markets recover at fag-end

Major headlines

Reliance Power aims to be largest private power company by 2015; the stock closes 1.68% higher

Venus Remedies surges on securing Thai contract; the stock closes 4.19% higher

GEI Industrial spurts on new order win; the stock higher by 1.74%



Indian indices

The domestic indices were volatile in today’s trade owing to tussle between bulls and bears. The indices closed a choppy session of trade on a flat note, but more importantly, after recovering most of the losses from a weak session, following a late rally. The global markets were weak today, with both the US and Asia markets closing lower while the European markets traded soft. The Nifty held on to its important 6000 levels though it slipped below that level in an intraday trade due to sell-off in heavyweights.

Reliance Industries, Housing Development Finance Corporation, ICICI Bank, Hindustan Unilever, Sterlite Industries, Steel Authority of India, Ranbaxy Laboratories along with technology and select auto companies' shares witnessed selling pressure. However, capital goods, power, cement and Anil Dhirubhai Ambani Group companies' shares along with DLF, Mahindra & Mahindra, HDFC Bank, State Bank of India, Tata Steel and Sun Pharmaceuticals were on the buyers' radar.

The Sensex began the session mere three points lower at 20114, tracking subdued global markets. The Sensex hovered between the negative and positive terrain in the morning trades. The index hit the day’s high of 20157 in the mid-morning session. However, the Sensex started to slide from that level and traded lower in the late morning trades. In afternoon session, the index extended losses as the European markets opened lower. The index hit the day’s low of 19982 in the mid-afternoon session. However, in the late trades, the Sensex recouped almost all the losses to end the session flat as the European markets recovered, coupled with buying in power and capital goods stocks.

At the finishing line, the Sensex closed at 20105, 13 points lower. The Nifty ended at 6030, down by six points.

Bond and Rupee update: India’s ten-year bonds rose, pushing their yield to the lowest level in six weeks, on speculation that the central bank will temper the pace of interest-rate increases after boosting borrowing costs five times this year. India’s rupee weakened, retreating from near the strongest level since May, on speculation that the local importers will boost dollar purchases to settle month-end bills.

Market Outlook: Tonight in the US, we have Consumer Confidence data and Richmond Manufacturing Index data.

Market sentiment

The market breadth was negative as declining stocks outpaced the advancing ones. Out of the 3,087 stocks traded on the BSE, 1,620 declined while 1,326 advanced. Hundred and forty-one stocks remained unchanged.

Sectoral & stock screening

Power stocks did well for the day, with the BSE Power up by 1.15%. The BSE Capital Goods (CG) was second gainer in the sectoral list, advanced by 0.93%, followed by BSE Realty that rose by 0.48%. On the other hand, BSE Oil & Gas lost by 0.74%, followed by BSE Information Technology (IT) and BSE TECk that fell by 0.46% and 0.32% respectively.

Looking into 'A' group stocks, the top three gainers were - ABB surged the most by 4.61%, followed by Sintex Industries that gained by 4.23% and Federal Bank rose by 4.01%. The top three losers were - Koutons Retail India slid the most by 4.60%, followed by Idea Cellular that fell by 2.41% and Dr Reddy’s Laboratories declined by 2.27%.

Viewing volumes

Industrial finance company - IFCI was the most traded, with over 0.37 crore shares changing hands on the BSE, followed by India’s second largest developer - Unitech (0.36 crore shares), leading integrated steel makers - Ispat Industries (0.34 crore shares), wind turbine major- Suzlon Energy (0.31 crore shares) and sugar major - Shree Renuka Sugars (0.22 crore shares).

Global signals

The European shares recovered almost all its morning losses after the UK’s second quarter gross domestic product (GDP) came unchanged at 1.2% on quarter on quarter and 1.7% on year on year basis. The UK economy expanded at its fastest pace in nine years in the April to June period,

All the major Asian indices closed in the negative territory except Jakarta Composite.

The US stock index futures signal towards a lower opening on the Wall Street tonight, ahead of the Home Sales Index and monthly Consumer Confidence data.