Sensex posts healthy recovery, ends 95 points higher

The Indian markets emerged from a gloomy session of the opening bell and shut shop with smart gains in trade today. The Sensex rose 95 points higher while the Nifty rose 32 points. Major Headlines India’s export slips 14.8% in July this year Inflation for July at 6.87% vs 7.25% in June KFA extend’s yesterday’s rally; hits weekly high RPOWER cons Q1 net profit jumps 22% Asia's oldest exchange to unveil its IPO in 2013 Indian Indices The key benchmark indices closed today's trading session in the positive zone backed by strong domestic and global cues. The broader markets witnessed lackluster trade today. The major news for the day was the announcement of July monthly Inflation data, which stood below the expectations and helped market recoup all of its losses. The positive opening of the European markets also helped the Indian equities to maintain its strength till the end of the day. The Sensex closed 95 points higher while the Nifty gained 32 points in today's trade. Movement of the Indian indices for the day:- The Indian markets started off today's trade on a flat note for the second consecutive session this week due to lack of local and global cues. Black clouds gathered on Dalal Street during the opening bell as the equities witnessed gloomy trading sessions. The markets swung between gains and losses in the morning trade. The key indices hit their intraday low levels at 17572.34 in the morning session. Markets took a breather as the monthly Inflation numbers were announced and recouped all of its losses in the afternoon trade to enter into the positive territory. Finally, markets managed to carry forward the gains and closed today's trade in the green zone. The positive opening of the European markets also acted as a support for today's rally. The key indices hit their intraday high at 17753.43 in the afternoon trade. The BSE Sensex and Nifty recovered most of its losses led by strong buying in the sectors like Oil & Gas, Banking, Metal, PSU, Auto, CD, IT, CG, TECk and FMCG while Realty, HC and Power added some pressure. Heavyweight supporters of the day were - ICICI Bank, RIL, Tata Motors, ONGC, L&T, Tata Steel and Infosys. The broader markets too ended with gains. The BSE Midcap index added 0.30%, while the BSE Smallcap index rose 0.25% at the closing bell. The overall market breadth stood positive. The Key benchmark indices NSE Nifty closed near 5-month high after beating 5350 mark. The Sensex ended at 17728.20, up by 94.75 points while Nifty closed at 5380.35, up by 32.45 points. On the Macro economic front, India's monthly inflation dropped higher than expected at 6.87% in July as against 7.25% in the previous month. India's exports declined 14.8% year-on-year to $22.4 billion in July this year due to slowdown in the global demand. In July 2011, the country's shipment stood at $26.3 billion. Imports too contracted during the month by 7.61% to $37.9 billion, leaving a trade deficit of $15.5 billion. Following are the stocks/ sectors which were in news today: 1. Sun Pharmaceutical Industries slipped on reports that a minority shareholder of Israel's Taro Pharma rejected the company's revised offer price of $39.5 a share for a buyout. The stock closed 2.10% lower in trade today. 2. Tata Steel was trading higher, after reporting a better-than-expected consolidated net profit of Rs598 crore for the quarter ended June 30, 2012. The stock was up by 2.63% in today's trade. 3. Hindalco Industries' net profit fell 34% yoy to Rs425 crore in the June quarter. At end of the day, the stock was down by 0.91%. 4. Kingfisher Airlines rallied 6.53% at Rs9.46, extending its previous day's 20% surge after the company said it is in talks with several investors to raise funds. 5. Reliance Infrastructure's standalone net profit fell 24% yoy to Rs327 crore in the quarter ended June 2012 despite sharp jump in the other income. The stock closed 1.53% higher in trade today. Market sentiment: The market breadth stood in favour of advances. Of the 2933 stocks traded on the BSE, 1412 (48.14%) rose, 1385 (47.22%) fell and 136 (4.64%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, three sectors closed in red zone while remaining ten sectors closed in green zone. Top Gainers: BSE Oil&Gas rose by 1.27%, BSE Bankex surged by 1.08%, BSE Metal gained by 0.83%. Top Losers: BSE Realty down by 0.73%, BSE HC down by 0.34%, BSE Power fell by 0.07%. Among 'A' group stocks, top three gainers were- Adani Enter rose by 4.68%, IGL up by 3.63% and Ranbaxy surged by 3.42%. Top three losers were- Alstom T&D declined by 3.99%, Suzlon down by 3.95% and United Spirits fell by 3.52%. Global signals: Asian stock markets edged higher in thin trading on Tuesday, as investors awaited economic data from the U.S. while maintaining a positive mood in anticipation of action by central banks to shore up the global recovery. Hopes that central banks in the U.S., China and Europe are gearing up for more stimulus measures to help their respective economies are keeping markets buoyant. European shares and the euro rose today as slightly better than expected performances by the German and French economies in the second quarter countered data that showed the wider euro zone sliding back towards recession. US stock index futures pointed towards a mixed opening at the Wall Street on Tuesday. Market Outlook: Data to be released in the US on Tuesday: Producer Price Index, Retail Sales and Business Inventories.