Markets off day lows, IT gains

Gains in IT heavyweights like TCS, Wipro along with Sun Pharma aid recovery

Markets recovered from day lows as the gains in IT heavyweights like TCS, Wipro along with Sun Pharma partially managed to cap the losses in FMCG majors and banks. At 1315 hrs, the Sensex was down 89 points at 19658 and the Nifty slipped 33 points to trade at 5852.

In the broader markets, the midcap index was down over 1% and the smallcap index edged lower by 0.5% which was in line with the BSE benchmark index.

Among the sectoral indices, IT, Teck and Auto were the only indices which traded higher by 0.2-1%. Among the ones in the red were FMCG, Realty, Metal, PSU and Bankex indices, all down 1-2.6%.

In Asia, the yen rose to a one-month high against the dollar on Monday as investors braced for another round of disappointing economic news out of China, knocking Japanese stocks to four-week lows and dragging down regional markets.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.6%, giving back a chunk of last week's 1.9% gain.

Tokyo's Nikkei share average slid 3.3% to its lowest close this month, and has now lost more than 7% in three days.

The gainers among the Sensex-30 were Wipro, Jindal Steel, Sun Pharma, Tata Motors, Hero MotoCorp and Tata Steel, up 1-5%.

TCS, NTPC, HDFC, L&T, Mahindra & Mahindra, Infosys and Bharti Airtel which gained 0.5-0.8% rounded off the gainers.

Among the ones in the red were Hindalco, Hindustan Unilever, Sterlite, ITC, Dr Reddys Lab, Coal India and Maruti Suzuki down 2-4%.

The market breadth was negative. 1,270 stocks declined while 782 stocks advanced on the BSE.