Markets recover on inflation data

Markets started started to recover in noon trades as the inflation numbers came in. However, the Sensex recoever around 126 points from the lows of the day to touch a high of 18,517. Nifty was down 36 points at 5,555.

Asian markets continued to trade soft. Nikkei shed 1.6% to 9,555. Japanese share prices fell sharply on Thursday, dragged lower by disappointing U.S. data and growing political uncertainty as Japanese Prime Minister Naoto Kan said he would quit after getting the country's nuclear crisis under control. Elseweher, Hang Seng was down 1.6% at 23,247. Shanghai Composite slipped 2% in trades.

The government has unveiled some key inflation data today. May 21 fuel group index stands at 12.54% vs 12.11%. Food inflation for the week ended May 21 eased to 8.06%. The previous week it was 8.55%.

BSE FMCG index gained 1.3% at 3,927. Colgate Palmolive gained 4% at Rs 927. Tata Global, HUL and ITC were up 1-3% each.

However, bankex, realty and metal stocks dropped around 1.5% each. Realty stocks declined on profit booking. Metal stocks fell as metal prices declined on the LME.

Sesa Goa and Hindustan Zinc were the big losers among metal stocks. Sterlite and Hindalco shed 1.6% each. Tata Steel was down 1.2% at Rs 574.

Realty stock losers list was led by DB Realty and Orbit Corp. Unitech slipped 2.3%, followed by Indiabulls Real Estate and DLF.

Reliance ADAG Group stocks rose for the second straight day. Reliance Capital gained 2% at Rs 534. Reliance Power was up marginally. Shares in Sun TV and budget carrier SpiceJet plunged after media reports said a public lawsuit had named the companies' chairman's brother Dayanidhi Maran in a telecoms probe. The stocks crashed 30% and 12% respectively.