Markets recover from lows

Markets have turned volatile in a narrow range. The Sensex, after dropping to a low of 19,641 has once again gained strength and is now up 157 points at 19,742.

The Nifty is up 50 points at 5,940.

BSE IT, consuner durables, oil & gas and banking stocks are in green.
____________________________________________
(Updated at 1030 hrs)

Markets pared most of its gains and touched a low owing to selling in auto and realty stocks. It has however, recovered from its low now.

Markets opened on a firm note following Asian gains as Ireland filed for a bailout formally over the weekend. The Sensex touched a high of 19,788 as consumer durables and realty stocks gained. However, the index has dropped 147 points from its high and touched a low of 19,641. The index is now up 122 points at 19,707.

The Nifty is up 35 points at 5,925.

"From the market perspective, the macro outlook is very positive from the country’s point of view. Also, a 20-25% earnings growth for this financial year, as well as FY12, is something that one is very confident about. We expect the markets in a range of 18,500 – 21,500 on FY12 basis", says Sudhakar Shanbhag, CIO, Kotak Life Insurance.

BSE healthcare and PSU indices have remained in the red.

Asian markets are trading mostly in green now. The Nikkei has jumped 1% to 10,129. Shanghai Composite has rebounded and is now up 0.5% at 2,902. Taiwan Weighted is up 1% at 8,381.

The Supreme Court will hear a petition filed by Centre for Public Interest Litigation on the 2G probe later today.

Investors are worries that with a slew of IPOs and FPOs, liquidity will be soaked out from the secondary equity markets. The government plans to sell more shares of SAIL and IOC in the coming months.

Among Nifty stocks, Cairn India has gained 2.5% at Rs 319. Bharti Airtel and Tata Power have added 2.2% each to Rs 337 and Rs 1,341, respectively.

IT stocks are in green. Wipro has jumped 2.5% to Rs 411. Infosys has added 2% to Rs 2,963.

Jaiprakash Assocaites, IDFC, ACC, Tata Motors and Tata Steel have also advanced in morning trades.

Meanwhile, PowerGrid has shed 2.2% at Rs 100. The new shares of the company would start trading from November 26, as per last week's announcement. The government divested 10% of its 86.36% stake in PowerGrid Corporation through the follow-on public offer.

Mahindra & Mahindra has dropped 1.7% to Rs 740. Sun pharma. Reliance Capital, Reliance Infrastructure and Sterlite are among the Nifty losers.

BSE market breadth is positive. Out of 2,624 stocks traded, 1497 have advanced while 1064 have declined.