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Benchmark share indices pared early losses and turned positive in late trades, amid firm European cues, led by a rebound by financial shares.
At 2:40PM, the 30-share Sensex was up 129 points at 26,426 and the 50-share Nifty was up 39 points at 7,899.
Foreign investors were net sellers in Indian equities to the tune of Rs 720 crore on Friday.
The Indian rupee was trading higher at 61.17 compared with its Friday close of 61.34/35.
Asian shares were trading mixed with shares in Hong Kong rebounding from their day's lows. Earlier in the day, stocks in Asia dropped to their seven month lows amid growth concerns even as positive data from China failed to boost investor sentiment. China's exports saw the fastest growth in 19 months, expanding by 15.3% from a year ago to $213.7 billion in September, a report said.
Financial markets in Japan are closed today. Shanghai Composite was down 0.4% while Hang Seng was trading 0.2% higher. However, Straits Times was trading 0.8% lower.
European shares pared early losses and were trading mixed with CAC-40 and DAX each trading 0.2% higher while FTSE-100 was trading with marginal losses. Meanwhile, global growth concerns continue to weigh on investor sentiment.
The BSE IT and Metal indices were among the top sectoral gainers up 1.5% each followed by Bankex which gained 1.2%. Healthcare and Realty indices continue to be the top losers.
Infosys was the top Sensex gainer up 2.2%, extending its Friday’s nearly 7% rally, after the company reported a better-than-expected consolidated net profit at Rs 3,096 crore for the second quarter ended September 30, 2014 (Q2) besides declaring 1:1 bonus. TCS was up 1.2% while Wipro was trading with marginal losses.
Financial shares which had lost ground earlier after JP Morgan lowered its India GDP growth forecast for 2014-15 to 5.1% from 5.3% because of weak factory output data rebounded from their day's lows and turned positive. HDFC, HDFC Bank, ICICI Bank and SBI were up 1-2% each.
Two-wheeler shares were up on upbeat September sales growth. Motorcycle sales in September climbed 19.34% to 10,56,509 units from 8,85,309 units a year earlier.
The total two-wheeler sales in September rose 23.81% to 15,67,351 units. Baja Auto and Hero MotoCorp were up 0.4-1.5% each.
Metal shares gained on the back of encouraging trade data from China, the world's largest consumer of metals. Tata Steel, Sesa Sterlite, Hindalco and Jindal Steel were up 0.5-3% each.
Mahindra & Mahindra was down 3% after the company announced plans to stop tractor production for a period of four days at two of its tractor plants located at Rudrapur and Jaipur raised concerns over high inventory levels because of weakening demand.
Capital goods stocks were trading lower amid weak August industrial production data Industrial growth refused to pick up pace in August, falling to the lowest this financial year so far at 0.4% over a year earlier from a 0.5% in July. L&T and BHEL were down 0.5-0.9% each.
Reliance Industries was down 0.4% ahead of its second quarter earnings due later today.
Pharma shares also witnessed profit taking. Dr Reddy's Labs, Cipla and Sun Pharma were down 0.8-2% each.
Among other shares, shares of Oriental Bank of Commerce have gained nearly 3.5% to Rs 232 on the BSE after Goldman Sachs upgraded the stock to “buy” from “neutral” with a target price of Rs 350.
Indusind Bank has moved higher by 3% to Rs 643 on BSE after reporting better-than-expected 30% year on year (yoy) jump in net profit at Rs 430 crore for the second quarter ended September 2014. The private sector lender had profit of Rs 330 crore in previous year quarter.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.3-0.4% each.
Market breadth remained negative with 1,475 declines and 1,349 advances.
