Sensex, Nifty recovers amid choppy trade

The Indian equity markets recovered marginally supported by some stock specific buying in metal and banking stocks. Investors treaded cautiously amid mixed cues from Asian markets, stocks were seeing a choppy ride on the Indian bourses. In global markets, most of the Asian shares were trading in red. Back home markets were still waiting for some trigger from the US Federal Reserve and hopeful for a rate cut from the central bank, as CPI inflation too has eased a bit. In currency markets rupee pared all its early gains against American currency on the back of increasing dollar demand from oil importers. On sectoral front automobile, capital goods, consumer durables and power stocks were mostly trading weak. Realty stocks were also exhibiting some weakness. Bank, FMCG, healthcare, oil and metal stocks were mixed. Back home, the market breadth favoring negative trend; there were 972 shares on the gaining side against 1380 shares on the losing side while 116 shares remained unchanged.

The BSE Sensex is currently trading at 17,076.24 down by 29.06 points or 0.17% after trading as high as 17,147.75 and as low as 17,038.59. There were 13 stocks advancing against 16 declines and one remained unchanged on the index.

The broader indices were trading on a negative note; the BSE Mid cap and Small cap indices were down by 0.28% and 0.34% respectively.

The only gainers on the BSE sectoral space were, Metal up by 0.39% and IT up by 0.29%, while Auto down by 1.01%, CD down by 0.73%, Realty down by 0.52%, CG down by 0.50% and Bankex down by 0.35% were top the losers on the index.

Tata Power up by 2.09%, Coal India up by 1.26%, HDFC up by 0.94%, ONGC up by 0.81% and Wipro up by 0.75% were the major gainers on the Sensex, while Tata Motors down by 2.01%, Hero MotoCorp by 1.42%, Bharti Airtel down by 1.36%, SBI down by 1.27% and BHEL down by 1.26% were the major losers on the index.

Meanwhile, the Government has slapped 10 % customs duty on raw sugar imports and also raised the import duty on flat alloy steel products like hot and cold rolled alloys to 7.5% than its previous 5 per cent. The Food Ministry had proposed 10% import duty on sugar after zero duty regime expired on June 30. Earlier, with an anticipation of shortfall in output, the government had allowed a duty free import of raw sugar during the 2009-10 sugar seasons.

India's sugar production is estimated to reach 26 million tonnes in 2011-12 marketing year (October-September) against 22 million tonnes of annual domestic consumption. India now with surplus output has emerged as one of the major exporters by shipping 2.5 million tonnes of sweetener in the current season. 

As per Finance Ministry notification, import duty on certain flat steel products too has been raised in order to close the loop hole occurred in product classification, which will help both alloy and non-alloy steel to attract same level of import duty. In the April-June quarter, steel imports have reported a 40% hike on behalf of rising domestic consumption. 

The S&P CNX Nifty is currently trading at 5,184.40, down by 8.45 points or 0.16% after trading as high as 5,204.20 and as low as 5,169.05. There were 22 stocks advancing against 28 declines on the index.

The top gainers on the Nifty were Tata Power up by 2.51%, Sesa Goa up by 1.45%, Coal India up by 1.33%, Reliance Infra by 1.24% and Sterlite Inds up by 0.99%.  While PNB down by 2.18%, Tata Motors down by 2.01%, Bharti Airtel down by 1.47%, Hero MotoCorp down by 1.46% and BHEL down by 1.28% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng index down by 1.47%, Nikkei 225 down 0.32%, Kospi Composite Index down 1.61%, Strait Times down 0.37%, Taiwan Weighted down 1.09% and Shanghai Composite was down 0.88%. 

While Jakarta Composite was up 0.17% and KLSE Composite gained 0.23%.