Markets ends with strong gains

 

Sensex ends up (provisional) at 15869 - up 170 points. Nifty ends up 50 points at 4756.
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(Updated at 1434 hrs)

Markets recovered from the day's low as data showed that the food inflation has eased. The Sensex, after touching a low of 15,479, recoeverd to trade near the dotted line at 15,634 - down 65 points. Nifty was down 17 points at 4,689.

Food inflation fell sharply to single digit at 9.01% for the week ended November 12 even as prices of most agricultural items, barring potatoes, onions and wheat, continued to rise, on an annual basis. Food inflation, as measured by the Wholesale Price Index (WPI), was 10.63% in the previous week.

Inflation is expected to moderate if the current easing trend in weekly food and fuel prices continues, Finance Minister Pranab Mukherjee said. "If this trend continues for the next two weeks for the month of November, I hope there will be a moderation in inflation," Mukherjee said.

BSE metal index dropped 0.7% at 9,954 as China - a key consumer of aluminium and copper - reported weak economic data.

"Currently Metal space looks weak, any rise in the Metal sector stocks should be used to exit long positions. Among the IT space heavy weights like INFY and TCS are looking weak at current levels, any rise in these counters should be used to exit longs," said Ashish Chaturmohta, Vice President (Derivatives & Technical Analyst), IIFL Wealth.

IT, oil & gas and FMCG indices showed weakness while capital goods, auto and power shares helped in the recoevery.

Bajaj Auto and Mahindra & Mahindra from the auto pack went up 1-2% each. Maruti was up1% at Rs 961. ONGC, Larsen & Toubro also gained. IT major Wipro and power stocks - NTPC and Coal India advanced marginally in trades.

Shares of Tata group firms were mixed after the group holding firm, Tata Sons named Cyrus Pallonji Mistry as the successor to Tata Group Chairman Ratan Tata. Tata Steel and Tata Communications dropped 1% each to Rs 378 and Rs 179, respectively. Tata Motors was flat at Rs 167.

Meanwhile, Reliance continued to the major dragger and slipped 2.4% at Rs 755. Infosys was down 1.6% at Rs 2,606. Hindalco, HDFC, Hero MoptoCorp and HDFC Bank shed 1-2% each.

Sugar prices declined by 0.70% to Rs 2,991 per quintal in futures trade today, as speculators booked profits. Shares of sugar companies such as Dhampur Special Sugar, Bannari Amman Sugar, Piccadily Agro slipped 3-10% each.