Markets rebound from day lows

IT shares decline, Tata Steel slumps

Markets have rebounded from their day lows in afternoon trade and are trading in a choppy manner. The Sensex which touched a low of 17,162 is now up 36 points at 17,250. Nifty is up nine points at 5,236.

Asian markets were mostly flat with the Nikkei and Hang Seng trading at 8724 and 19,084, respectively. However, Shanghai Composite slumped following dismal earnings reported by corporates, even as economic fears continued to haunt investors.

According to data released by the government, June inflation stands at 7.25%. Food Articles Inflation was at 10.81% against 10.74 month-on-month, with a 1.4% rise in the index. Manufactured Products at 5% Vs %.02% month-on-month.

BSE healthcare index added 1.3%, followed by consumer durables and bankex. the healthacre index has touched an all-time high today and has outperformed the market by gaining almost 20% compared to 12% rise in benchmark Sensex so far in 2012. Meanwhile, the IT index shed 1.5% at 5,282 as the rupee gave up early gains against the dollar today. It was still up 14 paise at 55.01 a dollar as banks and exporters sold the American currency amid inflows from foreign funds into the equity market.

Tata Steel is the biggest loser among Sensex stocks, down 3.2% at Rs 412 after turning ex-dividend today. Jindal Steel, Infosys and TCS are down 1-3% each. Among other losers are Sterlite, Hindalco and Larsen & Toubro.

On the other hand, Bharti Airtel has gained 4% at Rs 320. Dr Reddy's and Maruti Suzuki have advanced 2.5% each. Among other gainers today are Cipla and Sun Pharma.

Among other stocks, Andhra Pradesh Paper Mills has tanked 7% to Rs 298 on reporting a loss of Rs 15.81 crore for the second quarter ended June 30, 2012, as against a profit of Rs 16.30 crore in a year ago quarter.

Lloyds Steel Industries is locked at its 5% upper circuit of at Rs 10.61 after Miglani Group made open offer to shareholders for buying 26% stake in the company at Rs 11.65, which is premium to the current price.

BSE market breadth is positive. Out of 2,643 stocks traded, 1,303 shares have advanced while 1,236 shares have declined.