Sensex, Nifty recover after hitting almost two-week low

Key benchmark indices recovered in morning trade after an initial decline triggered by negative Asian stocks. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 111.12 points or 0.41% at 27,142.32. The 50-unit CNX Nifty was down 28.65 points or 0.35% at 8,204.25. The losses for the Sensex were higher in percentage terms than those for the Nifty.

Earlier, the Sensex and the Nifty, both, hit their lowest level in almost two weeks in morning trade. The Sensex fell 156.11 points or 0.57% at the day's low of 27,097.33 in morning trade, its lowest level since 16 October 2015. The Nifty fell 51.90 points or 0.63% at the day's low of 8,181 in morning trade, its lowest level since 16 October 2015.

The market breadth indicating the overall health of the market was positive. On BSE, 1,092 shares rose and 770 shares fell. A total of 97 shares were unchanged. The BSE Mid-Cap index was up 0.21%. The BSE Small-Cap index was up 0.4%. Both these indices outperformed the Sensex.

In overseas markets, Asian markets declined ahead of a policy statement from the US Federal Reserve later in the global day today, 28 October 2015. US stocks slipped for a second consecutive day yesterday, 27 October 2015 due to combination of slumping oil prices, soft economic data and mixed earnings. The Fed's two-day policy meeting began yesterday, 27 October 2015. Investors are bracing for whether the central bank will hint at a December hike in interest rates. The Fed has held its benchmark short-term interest rate near zero since December 2008.

NTPC (down 1.7%), ONGC (down 1.11%) and Coal India (down 1.01%) edged lower from the Sensex pack.

Bank stocks were mixed. Among private bank stocks, ICICI Bank (down 2.04%) and Yes Bank (down 0.55%) declined. IndusInd Bank (up 0.49%), HDFC Bank (up 0.7%) and Kotak Mahindra Bank (up 1.5%) rose.

Axis Bank dropped 5.86% to Rs 490.75. The stock had gained 0.03% in volatile trade to settle at Rs 521.30 yesterday, 27 October 2015 after declaring Q2 result. Axis Bank's net profit rose 18.93% to Rs 1915.64 crore on 13.75% rise in total income to Rs 12001.01 crore in Q2 September 2015 over Q2 September 2014. The result was announced during market hours yesterday, 27 October 2015.

Among PSU bank stocks, State Bank of India (SBI) (up 0.12%), IDBI Bank (up 0.89%), and Union Bank of India (up 0.9%) rose. Bank of India (down 0.69%), Punjab National Bank (down 0.19%), Bank of Baroda (down 1.07%) and Canara Bank (down 0.61%) fell.

Telecom stocks were in demand on renewed buying. Bharti Airtel (up 1.26%), Idea Cellular (up 1.03%), MTNL (up 0.79%), Tata Teleservices (Maharashtra) (up 1.12%) and Reliance Communications (up 0.06%) gained.

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