Sensex ends down 10pts

Sensex ends down (provisional) at 16,873 - down just 10 points. Nifty ends down 38 points at 5,030.
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(Updated at 1434 hrs)

Markets have recovered from the day's lows on the back of buying in realty and banking shares. The Sensex opened weak and touched its lowest in five week at 16,645. however, it recovered from there and was down 57 points at 16,825. Nifty was down 12 points at 5,056.

Asian markets ended lower on sustained worries of the Euro-zone debt crisis. Italy's benchmark sovereign yield was above the key 7% level. he Bank of Japan cut its economic outlook on Wednesday, citing weaker global conditions, while voting unanimously to keep its interest-rate target at 0-0.1%, as expected. Nikkei slumped 1% to 8,463. Hang Seng and Shanghai Composite dropped over 2% each. Markets in Seoul and Taiwan were also in red.

Meanwhile, India's services exports fell by 5.6% year-on-year to $11.22 billion in September, according to the Reserve Bank of India. The country's total receipts from services exported stood at $11.89 billion in August, RBI data said. Moreover, Export Promotion Council for EOUs and SEZs (EPCES) data showed that exports from special economic zones (SEZs) grew 26.2% year-on-year to Rs 1.76 lakh crore during April-September this fiscal.

Capital goods index slipped 3.7% to 9,824 as more companies came out with muted corporate earnings. The index earlier slipped to a 30-month low of 9,712.

The slowdown in order inflow dragged down the capital goods stocks such as Bharat Heavy Electrical (BHEL), Larsen and Toubro (L&T), Punj Lloyd, Suzlon Energy, Thermax and Crompton Greaves, which have plunged more than 5% each and are trading at their respective 52-week lows.

"Stocks like Larsen & Toubro and BHEL still look weak on the charts. Further 5% fall seems likely at these counters; however, look for shorting opportunity on bounces rather than at current market price," said Somil Mehta, Senior Technical Analyst (Equity), Sharekhan.

BSE power index shed 1.8% while the oil & gas index dropped 1% in trades.

State-owned oil marketing companies (OMCs), including Bharat Petroleum, Hindustan Petroleum and Indian Oil were trading at their 52-week lows after reducing the price of petrol for the first time in 33 months by Rs 1.85 a litre to pass on to the consumer the benefit of a dip in the global crude oil price in the first fortnight of November. BPCL shed 3%, HPCL slipped 3.5% while IOC dropped 2%.

Reliance dropped 1.4% at Rs 850. The company has denied a newspaper report the energy major was in talks to buy a stake in cash-strapped Kingfisher Airlines. Kingfisher was up % at Rs 23.20.

HDIL fell 3.4% at Rs 76, extending 22.35% slump in the preceding five trading sessions, after MSCI said it will exclude the stock from the MSCI India Index with effect from 1 December 2011. On the other hand, shares of companies included in MSCI index – Idea Cellular, Power Finance Corporation (PFC) and Bharti Airtel were in limelight on the bourses. Idea gained 4.3%, PFC added 4.6% and Bharti was up 1% in trades.