Sensex rebounds from session lows...IT shares sparkle

It could have been worse. That is what the bulls must be thinking after Monday's session in which the BSE Sensex dipped below 20,000 and the NSE Nifty fell under 6,000. But, by the close of trade, both the key indices managed to bounce back and reclaimed those crucial levels.

The BSE Sensex ended at 20,168.89, up 43 points from the previous close after being as low as 19,870. It had opened at 20,160 and touched a day's high of 20,229.



The NSE Nifty on the other hand was up 13 points at 6,075.95 after touching a day's low of 5,985 and a day's high of 6,115. It opened at 6,112.

In terms of sectors, IT was the real star today after Friday's disappointing session in the wake of the Infosys results. Other notable gainers included Oil & Gas and Real Estate while Consumer Durables stocks were the worst hit.

Market breadth was negative though, as the broader market never recovered from a weak start; 1,715 shares declined on the BSE while 1,236 shares advanced.

The BSE Small-Cap index lost 0.15% while the BSE Mid-Cap index was down ~0.5%.

The BSE Sensex turned sharply lower amid all-round selling immediately after opening in the positive territory. The NSE Nifty also lost ground even as the Coal India IPO opened. The biggest IPO will close on Oct. 21. The listing of Coal India shares is expected on Nov. 4.

"The Indian stock indices saw accelerated selling in mid-morning trade and in the afternoon, as some investors pulled out money to apply for the Coal India IPO. Sentiment was also nervous after two consecutive weeks of losses, which dragged down the indices from 33-month highs," says Amar Ambani, Vice President, Research, India Private Client, IIFL.

The near-term outlook for the market is a little murky and calls for continued caution. Brace for some volatility too, as we are in the midst of an earnings season. The anxiety over global economy continues unabated amid hope of another round of monetary easing by the Federal Reserve.

Within the Sensex and the Nifty, the top gainers were TCS, RIL, Tata Steel, ONGC, Tata Motors, NTPC, HDFC Bank, L&T, Reliance Infra, DLF, Infosys, HCL Tech, Suzlon, ONGC, Dr. Reddy and IDFC.

Among the notable losers in the main indices included ACC, Bharti Airtel, Tata Power, Jaiprakash Associate, M&M, Cipla, Wipro, Maruti Suzuki, Sesa Goa, Axis Bank and ITC.

Petronet LNG, Gulf Oil Corporation, Uttam Galva, Bilcare, Indiabulls Real Estate, Alok Industries, Subex and JM Finanacials were the leading gainers outside the main indices.

Chambal Fertlizers, Gujarat State Fertilizers, Unichem Labs, Rashtriya Chemicals and Fertilizers, SKS Microfinance, Koutons Retail, Info Edge India, Uflex and Apollo Tyres were the key laggards in the broader market.