Volatile markets end with minute gains; ECB decision in focus

Indian markets closed today's volatile session on a flat note tracking global cues ahead of ECB meet. The Sensex inched 33 points higher while the Nifty rose by 13 points in trade today Major Headlines of the Day: IT stocks strengthens on weak rupee RIL becomes 1st Co to participate in global oil futures market Gold futures shine to all time high of Rs32,758 per 10 gms Planning Commission expects 8.2% growth in 12th Five year Plan Indian Indices: The Indian markets were on a roller-coaster ride on Thursday with the benchmark indices swinging between the red and the green zone. Positive European cues helped the markets to shut shop in green today amidst highly volatile swings. The Sensex closed 33 points higher while the Nifty advanced 13 points. Movement of the Indian indices for the day: After yesterday's losses, the key benchmark indices closed today's trading session in the positive zone backed by domestic and global cues. The broader markets too witnessed lackluster trade. Today, the Indian markets opened the session on a flat note but the pendulum kept swinging between the green and the red zone. The key indices hit their intraday high in the afternoon session and closed today's trade on a positive note. The sectors like IT, TECk, Auto, HC, Bankex, PSU, Metal and Power led good support to the markets today, while FMCG, CD, CG, Realty and Oil & Gas added some pressure. The major heavyweight gainers were- Infy, ICICI Bank, Wipro, TCS, Tata Motors, ONGC and SBI. Indian markets followed the global trend as investors awaited more details of a new bond buying program from the European Central Bank (ECB). The market started the trading session on a flat note but rising hopes of fresh bond buying program that led the rally in European markets helped the Sensex to gain more than 100 points and the Nifty touching 5250 level in the afternoon trade. However, the markets trimmed gains in late trade due to profit booking. At the closing bell, the BSE Midcap index and the BSE Smallcap index gained 0.31% and 0.24% respectively. The overall market breadth was positive. The Sensex closed at 17346.27, up by 32.93 points while the Nifty rose 12.70 points to close at 5238.40. Gold crossed the Rs32,000 mark today for the first time in the national capital, driven by increased buying by stockists ahead of the wedding season amid a firming global trend. The precious metal gained Rs320 to trade at Rs32,300 per 10 grams. It has gained by Rs1,555 per 10 grams in the last two weeks. From the currency point of view, the Indian rupee erased early gains today and fell by 11 paise to 56.02 a dollar on fresh demand for the American currency from banks and importers amid capital outflows from the foreign funds. Following are the stocks/ sectors which were in news today: 1. BSE IT index gained 2.55% at 5872.21 after the rupee dropped against the dollar. IT stocks like Wipro closed up by 4.43%, Infosys up by 3.58%, Hexaware Technologies up by 3.08%, HCL Technologies up by 1.25% and TCS up by 1.11% in trade today 2. ITC declined on concerns that the anti-tobacco marketing laws globally might be emulated in India as well as dealers say. The stock closed 2.69% lower in trade today. 3. Tinplate Company of India soared after its promoter Tata Steel acquired additional 14% stake of the company for Rs87.92 crore through open offer. The stock closed 9.41% higher in today’s trade. 4. Neyveli Lignite Corporation was trading higher today after the company said it is planning to increase its raw lignite sales to over 1 million tonnes. The stock closed 1.49% higher in today’s trade. 5. The Deccan Chronicle Holdings (DCHL) today issued a tender notice inviting bids from prospective buyers for its IPL franchisee Deccan Chargers, which is currently in a financial mess. Sources said the Videocon Industries is likely to bid for it. The stock closed 5% lower in trade today. Market sentiment: The market breadth stood in favor of advances. Of the 2953 stocks traded on the BSE, 1446 (48.97%) rose, 1333 (45.14%) fell and 174 (5.89%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, eight sectors closed in green zone while remaining five sectors closed in red zone. Top Gainers: BSE IT rose by 2.55%, BSE TECk surged by 1.85%, BSE Auto gained 0.73%. Top Losers: BSE FMCG down by 1.76%, BSE CD down by 0.86%, BSE CG fell by 0.76%. Among 'A' group stocks, top three gainers were- Torrent Power rose by 9.86%, Ambuja Cements up by 4.55% and Wipro surged by 4.43%. Top three losers were- Gujarat State Petroleum declined by 4.48%, BHEL down by 3.20% and Central Bank fell by 3.03%. Global signals: Asian stock markets drifted on Thursday ahead of a ECB meeting on hopes of an announcement of a plan to support financially struggling European countries. The euro climbed in Asia to $1.2607, compared with $1.2600 late in New York on Wednesday. The yen was little moved, at Y78.39 to the dollar. European stocks edged up and the euro hovered near an eight-week high on Thursday on expectations that the ECB will unveil new tactics to ease the high borrowing costs facing the region's highly indebted nations at a meeting later in the day. There were also further signs of a weakening economy in Europe, as August manufacturing data for the euro zone indicated a deeper contraction than in July. US stock index futures pointed towards a higher opening at the Wall Street on Thursday. Market Outlook: Data to be released in the US on Thursday is: Jobless Claims, ADP Employment Report, ISM Non-Mfg Index, EIA Petroleum Status Report.