Markets on recovery path

Markets are trading in a volatile fashion, albeit in a narrow range. The Sensex, after touching a low of 20,867, rebounded to a high of 20,952. The index is now flat at 20,927.

Nifty is down seven points at 6,294.

BSE auto index is up 1.2% at 10,427. Consumer durables, IT and oil stocks are in green.
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(Updated at 1020 hrs)

Markets in the recovery mode after heavyweights dragged the bourses into red this morning.

The Sensex is trading flat at 20,929. Earlier in the day the index had touched a low of 20,867 on negative cues rom US markets.

Nifty is down seven points at 6,293.

Index heavyweights Reliance, Larsen & Toubro and ICICI Bank have declined in trades this morning. Bharti Airtel has dropped 0.2% to Rs 333 following a 27% dip in Q2 net. The telecom company's total Income increased to Rs 15,231.9 crore for the quarter ended September 30, 2010 from Rs 10,397.5 crore for the quarter ended September 30, 2009.

Asian markets are mostly in green. Nikkei has gained 1% at 9,807 on a dropping Yen.

The US markets on Tuesday slipped with the Dow Jones Industrial Average (DJIA) skidding 60 points to 11,421. Nasdaq and S&P 500 also ended weak. Investors were still adjusting to the US Fedreal Reserve's decision on QE2, last week.

"Earnings growth momentum is very good, the ownership pattern is still skewed and certain sectors have done reasonably well", says Kishor Ostwal, CMD, CNI Research.

Hindalco has shed 3.3% at Rs 224 as a reaction to its results. Cipla has slipped 1.8% to Rs 343.

ICICI Bank has dropped 1% along with ACC. Sterlite, BHEL, Larsen & Toubro and ITC are down in trades.

State run power firm, Power Grid Corporation's FPO opened for bidding on Tuesday and was fully subscribed. The stock is now at Rs 105 - up 0.7%.

"Given the increasing opportunity in the sector, assured return ratios coupled with lower operational risks and attractive valuations, we recommend Subscribe to the FPO", recommends Angel Broking.

Meanwhile, Tata Motors is the star of the day, gaining 5% at Rs 1,334. The company had reported the highest ever quarterly profit of Rs 2,223 crore as compared to Rs 22 cr in the same quarter in the previous fiscal.

Jaiprakash Associates, TCS, Tata Steel and DLF are up in trades. DLF would be coming out with its numbers later today.

Oil markets companies are up. BPCL, set to announce its numbers today is trading at Rs 749 - up 0.6%. HPCL is at Rs 472 - up 0.6%. HPCL would be announcing its results on Friday.

"Petrol prices have been mostly deregulated and a lot of pricing has been already factored in. The only question is diesel de-regulation. If it happens, I expect some upward bias in these stocks. Otherwise, this sector is fully priced-in", says Kishor Ostwal, CMD, CNI Research