Sensex posts mild recovery; exporters gain

Reuters Market Eye - The BSE Sensex rises 0.2 percent, while the broader Nifty is up 0.18 percent, off the day's lows after earlier hitting their lowest intraday level since April 16.

Software exporters gain, with Infosys Ltd rising 1.3 percent and Tata Consultancy Services Ltd rising 0.9 percent, helped by hopes a weaker rupee would improve overseas earnings.

Contract research and manufacturer Divis Laboratories Ltd gains 3 percent on expectations rupee depreciation would aid earnings in the coming quarters, dealers said.

Traders say movement in the rupee and foreign portfolio flows would be key to see if markets can consolidate at current levels.

 

Foreign institutional investors have been sellers in index futures for the past 14 out of 15 sessions, totalling 99.17 billion rupees.

Banks fall on fears that an end to the Fed monetary stimulus could push the rupee lower, delaying any rate cuts from the Reserve Bank of India.

HDFC Bank Ltd is down 0.9 percent, while ICICI Bank Ltd falls as much as 1.1 percent.

(Reporting by Abhishek Vishnoi)