Markets end higher amid volatility
HDFC, HDFC Bank lead Sensex gains
Markets recovered from the day lows to end higher on Thursday, following the expiry of August derivative contracts, led by financial shares.
The 30-share Sensex provisionally ended up 80 points at 17,571 and the 50-share Nifty ended up 32 points at 5,320.
Earlier, the Sensex had touched an intra-day low of 17,368 and the Nifty touched a low of 5,255.
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(Updated at 14:30 hrs)
Key share indices have recovered from day lows and have turned mixed ahead of the expiry of December futures and options series today with capital goods and financial and software shares leading the fall.
At 14:30, the 30-share Sensex was at 17,483 down 8 points and the 50-share Nifty was at 5,287 down 1 points. The Sensex and the Nifty touched an intraday low of 17,368 mark and 5,255 levels, respectively.
On the global front, Japan's Nikkei average fell below 9,000 to a two-week closing low on Thursday as hopes that U.S. Federal Reserve Chairman Ben Bernanke will signal more stimulus in his speech on Friday faded, while resources-related shares slid on a weaker outlook.
Uncertainty over central bank action to fight slower global growth sent world shares and industrial commodity prices lower on Thursday, while nervousness ahead of a meeting of central bankers in the United States also curbed risk appetite.
Investors are waiting to see whether U.S. Federal Reserve Chairman Ben Bernanke will provide any hints of a third round of monetary easing in a speech at the meeting in Jackson Hole, Wyoming, on Friday.
The Hang Seng, Nikkei and Straits Times were down 1% each while the Shanghai Composite was marginally down.
Back home, the rupee trading at 55.6575/6650 versus previous close of 55.6250/6350. Pair has traded in a tight 55.6325-55.75 band ahead of GDP data and the speech from Fed's Bernanke on Friday.
On the sectoral front, BSE Capital Goods, Metal and Oil & Gas indices have plummeted by almost 1% each followed by counters like Power, Auto, PSU, Consumer Durable, Banks and IT, all declining marginally. However, BSE Realty and Healthcare indices have surged by nearly 1% each.
Financial shares are down after hopes of a rate cut remained elusive on the back of a hawkish stance by the central bank. HDFC and ICICI Bank are down over 1% each while SBI is marginally down
Index heavyweight Reliance Industries has witnessed profit taking at higher levels after over 3% gains last week. The stock is down 0.6%. .
Capital goods shares are down, ahead of the Apr-Jun GDP numbers due for release on Friday, on worries over continued slowdown in the segment. L&T and BHEL have slipped 1% each.
Shares of software exporters such as Infosys and TCS were down ahead of the key US economic data due for release on Friday. TCS is down nearly 1% while Infosys is marginally down.
Auto shares like Maruti Suzuki, Hero MotoCorp, M&M and Tata Motors have fallen between 0.2-2%. Auto shares have extended yesterday’s losses on concerns that sales growth in August would remain subdued on account of high interest on auto loans and rising fuel prices.
On the winning side, Hindalco is the top Sensex gainer, down over 2%. Other gainers include Wipro, Cipla, Tata Motors, HDFC Bank and Bajaj Auto.
The BSE-Mid cap Index and the BSE-Small cap are trading flat with positive bias.