Markets have recovered from the lows of the day on the back of buying in FMCG stocks. BSE Sensex touched a low of 17,734 early this morning. It is now down 55 points at 17,794. Nifty is down 24 points at 5,392.
"Markets from hereon should move upwards, given that the valuations are not demanding and that the most of the concerns in terms of inflation are likely to subside as we enter in FY2014, thus markets might consolidate for next 6 months and then move upwards. Hence we are positive on the markets, so investors should take a long term view on the markets and invest," Sarabjit Nangra, VP Research, Angel Broking.
Asian shares retreated from a two-week high on Friday on scaled back expectations of more stimulus from the U.S. Federal Reserve. Growth concerns loomed after manufacturing surveys from the euro zone and China depicted a bleak outlook.
The FIIs have been the net buyers Indian stocks to the tune of Rs 123.90 crore on August 22, 2012.
BSE realty index continues to languish. The index is down 1.4% at 1,608. Capital goods, bankex, oil & gas and auto indices are down half a per cent each. However, healthcare and FMCG indices have recovered and are trading flat at the moment.
Metal shares have declined on profit booking. Tata Steel has slipped 2% to Rs 391. Hindalco and Jindal Steel are down 1% each. Mahindra & Mahindra is down 2% as well. Heavyweights, Reliance and ICICI Bank have contributed 37 points to the Sensex's fall.
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Meanwhile, HDFC is holdng on to gains and is up 1.4% at Rs 730. Coal India, Hindustan Unilever and Sterlite are up around 1% each.
BSE market breadth is fairly negative. Out of 1,389 stocks traded, 932 shares have declined while 586 shares have advanced.