Markets pared all the losses and were trading higher on back of gains in rate sensitive banking and realty shares, shrugging off high inflation data.
The Nifty index opened in the red tracking weak global cues and cautious sentiment after the deadly triple blasts on Wednesday evening in the financial capital-Mumbai. The S&P CNX Nifty opened at 5,569 level and touched a low of 5,541. However the index recovered over 85 points from the day’s low and was trading near day’s high at 5,628, up 43 points. The benchmark Sensex advanced 123 points, at 18,717.
On the macro front, the June inflation stood at 9.44% compared to 9.06% in April and WPI primary articles index was at 2.8% on a month-on-month basis. The interest rates sensitive sectors seemed to have discounted the spike in inflation numbers.
BSE Realty index was on a firm ground, up 1.9%. Unitech advanced 4%, Indiabulls Real Estate added 3.5% and Orbit Corporation was up 2.8%.
Investors also cashed in on the banking stocks, the BSE Bankex index advanced 1.3%. Yes Bank was up 2.3%, ICICI Bank surged 2% and State Bank of India was up 1.5%.
Among individual stocks Bajaj Auto slid 2% at Rs 1421 after April to June quarter earnings lagged expectations. The country’s second largest two-wheeler maker posted a net profit of Rs 711 crore in the first quarter ended June, 2011, an increase of 20.50% from 590.15 crore seen in the corresponding quarter a year ago.
Also TCS has edged lower by 0.3% at Rs 1147 ahead of its numbers scheduled to be announced later in the day.
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From the broader markets, midcap and the smallcap indices were up 0.6% and 0.4% each.
The overall market breadth remains positive; 1,572 stocks have advanced, while 1026 stocks declined.