Sensex manages modest gains amid Greek turmoil

Indian equity benchmarks managed moderate gains but retreated from intraday highs, as investors turned a bit wary ahead of a crucial confidence vote in Greek parliament amid mounting anxiety over the fate of the highly indebted eurozone nation.

Market players were also awaiting the outcome of the G20 summit in Cannes (France) later today where the eurozone debt crisis is the main topic of discussions among world leaders. US monthly jobs data is also due out before the opening bell on Wall Street.



In terms of sectors, Metals, Capital Goods and Realty indices were the top winners. Banking, IT, Pharma, Auto, PSU, Power and FMCG indices witnessed select buying. The Oil & Gas index was in the red due to some weakness in the index bellwether Reliance Industries.

World markets breathed little easy today after Greek’s PM shelved the controversial plebiscite on the EU bailout. However, George Papandreou may still be in trouble as he braces for Friday’s confidence vote in parliament.

The undertone across global markets still remained edgy over the ongoing political instability in Greece. Reports also suggested that Italian premier is under pressure to resign amid the country’s mounting debt load and spiking borrowing costs.

World leaders gathered in France for this week's G20 summit urged eurozone counterparts to stabilise Greece and fix the two-year-old debt crisis. Leading nations also agreed to boost the IMF war chest to deal with potential emergency.

Meanwhile, the ECB cut interest rates by 25 bps amid looming eurozone recession and turmoil in Greece. Italian bond yields softened post the ECB move after having jumped to euro area record. The new ECB president Mario Draghi also left the door open for another rate cut next month.

The G20 summit and the US jobs data are among the crucial overseas events investors were keeping on their radar.

"Back home, inflation continues to be in focus with food inflation jumping to nine-month peak. Petrol prices have been hiked by nearly Rs. 2 per litre. Separately, the HSBC-Markit services PMI has shrunk for the third successive month.

Fund flows have virtually come to a standstill amid growing jitters over the fate of Greece and its fallout on the eurozone economy. The Indian markets will now await the release of September IIP numbers scheduled for 11:00 AM (IST) on November 11," says Amar Ambani, Head of Research, IIFL.

Finally, the BSE Sensex ended at 17,563, up 80 points. It had earlier touched a day's high of 17,702 and a day's low of 17,474. It opened at 17,674. The NSE Nifty closed at 5,284, up 18 points.