Sensex ends up 148 pts

The Sensex has ended (provisional) at 17,045 - up 148 points. Nifty ended up 44 points at 5,165.
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(Updated at 1436 hrs)

Markets have recovered from the lower levels and have reached near day highs led by buying among Capital Goods, banks and FMCG shares. At 1435 hrs, the Sensex was up 62 points at 16,959 and the Nifty gained 22 points to 5,143.

On the global front, global growth worries triggered falls in shares and commodities on Thursday after the U.S. Federal Reserve signalled a weaker outlook and Chinese data pointed to a further slowing.

The deepening euro zone debt crisis was also hitting sentiment, with Spain's borrowing costs expected to hit new highs at a debt auction, a few hours before it sheds light on the dire state of its banks and possibly makes a formal request for rescue funds to bail out the sector.

European markets have opened weak with CAC, DAX and FTSE dipping by almost 1% each.

Back home, BSE Capital Goods, Bankex and FMCG indices have surged between 0.5-2%. However, BSE Oil & Gas, Technology and Consumer Durable indices have declined by almost 1% each.

Shares of capital goods companies are in focus on reports that the government will impose a 5% import duty on power generation equipment.

“The Prime Minister's Office (PMO) on Wednesday directed the power ministry to float a fresh proposal on slapping higher duty on imported power gear, a move aimed at cushioning domestic firms including Bharat Heavy Electricals Ltd (BHEL) and Larsen and Toubro Ltd (L&T) against cheap imports, mainly from China,” the report suggests.

BHEL is the top Sensex gainer, up over 2%. L&T has gained over 1%.

From the banking space, ICICI Bank, SBI and HDFC Bank have gained between 1-2%.

FMCG majors ITC and HUL have surged by nearly 1%.

On the losing side, RIL has declined by over 3% after the Canadian oil and gas producer Niko Resources, which owns 10% stake in KG D6 block, said total proved plus probable natural gas reserves have fallen almost 51% to 377 billion cubic feet equivalent (bcfe) as it struggles with low reserves at its KG D6 block in India.

Metal stocks such as Hindalco, Hindustan Zinc, Jindal Steel, Bhushan Steel, SAIL and Coal India are trading lower by 0.5-1.5% each on the back of disappointing macro-economic data from China.

Meanwhile, Meanwhile, BSE Midcap and BSE Smallcap indices have gained by nearly 0.5%.