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The markets have stabilised this morning, post the carnage witnessed in the previous session, thanks to the favourable cues from the Asian front.
At 9.40 am, the Sensex was back above the psychologically crucial 27,000 mark at 27,191, higher by 313 points or 1%, and the Nifty had reclaimed the technically important 8,200 mark at 8,221, up 95 points.
The broader markets have also rebounded this morning, with the midcap and smallcap index gaining around a percent each at 10,433 and 10,884 respectively.
The Sensex had crashed by 630 points to end below the 27,000 mark in the previous session as reform concerns had apparently rattled the market participants. The market movements this morning should soothen frayed nerves, atleast for the time-being.
On the economic front, the retail inflation softened further to a four-month low of 4.87% in April compared to 5.25% cent in March. In contrast, factory output growth slowed to a five-month low of 2.1% in March as against 5% registered in February and this could push the Reserve Bank of India (RBI) to slash key interest rates.
Lupin, Adani Enterprises and Emami are likely to announce their March quarter results during the day.
RUPEE
The rupee has opened flat at 64.17 per dollar this morning as against the previous day's close of 64.17. The US dollar has slumped against the euro and swiss franc after a spike higher in German bond yields overshadowed a rise in US treasury yields and led to a demand for European currencies.
GLOBAL MARKETS
Asian shares firmed up on Wednesday, shrugging off weakness on Wall Street as investors bet that a batch of economic data from China due later in the day would bolster the case for more stimulus in the world's second-largest economy.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5% , while Japan's Nikkei stock index edged down slightly. Taiwan, Hong Kong, Japan, Indonesia and South Korea rose by 0.04% to 0.66%.
China's Shanghai Composite shed 0.27%; China will release official data on April industrial production today, as well as retail sales figures for last month and fixed investment.
The U.S. stocks had ended lower on Tuesday after a recent run-up in global bond yields unsettled investors, though stocks recovered from steeper losses after Treasury yields pulled back slightly from six-month highs.
SECTORS AND STOCKS
All the sectoral indices are in the green, with the exception of the metal space. Banking and auto stocks are in the limelight this morning.
In the banking space, ICICI Bank, Axis Bank and SBI have gained 1-2% each. In the larger banking space, Bank of Baroda, Bank of India, Canara Bank and Yes Bank have also added 1-2% each.
The auto stocks are having a good session of trade, with Hero MotoCorp, M&M, Maruti and Tata Motors adding 1-2% each.
Index bellweather RIL has gained 1.2% at Rs 878.
Select metal stocks are trading weak, though, with Vedanta and Hindalco shedding around 2% each.
The market breadth is strong. Out of 1385 stocks traded on the BSE thus far, there are 1071 advancing stcosk as against 259 declines.
