Markets recover partially, realty stocks advance

The markets after a positive start, wherein the Sensex touched a high of 20,578, soon slipped into red led by profit taking in IT stocks. The index dropped to a low of 20,342, has recovered partially and is now down 87 points at 20,411.

IT stocks are witnessing profit taking, despite Infosys reporting better-than-expected Q2 numbers and raising its FY11 guidance. Infosys touched a high of Rs 3,249, and is now trading 1.5% lower at Rs 3,138.

Ambareesh Baliga, Vice President, Karvy Stock Broking, says the results have been factored in hence there is not much reaction from the markets.

Other IT majors - TCS and Wipro have slipped 2% each to Rs 967 and Rs 480, respectively. The BSE IT index is down 1.7% at 6,172. Smaller players like Oracle Financials, Tech Mahindra and MphasiS are also in red.

ITC, ACC and Bharti Airtel are the notable losers among the Sensex stocks. Hindustan Unilever, however, has advanced over 1% to Rs 302. NTPC is the other major gainer.

Banking stocks too are witnessing some profit taking following Axis Bank's results yesterday. Federal Bank, Bank of India, Union Bank of India and Axis Bank are the major losers.

Realty stocks, however, are witnessing some buying off late on hopes of some kind of positive surprises in Q2 earnings. Indiabulls Real Estate has surged nearly 3% to Rs 201. Unitech has advanced over 2% to Rs 96, and Orbit Corporation too has jumped over 1% to Rs 133.

The market breadth is marginally positive, out of 2,830 stocks traded so far on the BSE - 1,422 have advanced and 1,283 have declined.