Sharp recovery in markets have taken the bourses near the day's high in late noon trades. Easing in food inflation as well as strong Asian stocks have helped in the recovery today.
The Sensex, after a firm start dropped to a low of 19,616. The index rebounded thereafter, and traded within a range for some time. It is now trading at 19,917 - up 53 points.
The Nifty, after dropping below the 6K mark on Tuesday, have once again gained strength. It is now up six points at 5,994.
"Now, if Nifty fails to sustain above 5950 level on closing basis then we may witness further selling pressure towards 5850 level. Whereas, sustaining above 6050 level might emerge buying interest in the market," says Anand Rathi Research.
India's annual food inflation eased for the fifth consecutive week in early November, probably due to new crop arrivals in the market, lending support to expectations that the central bank would hold rates steady in the near term. The food price index in the year to November 6 rose 10.3%, compared with 12.3% in the previous week.
However, the BSE mid and small-cap indices continue to languish in the red.
BSE auto and metal index have gained 1.3% each. "The auto story will continue for some time, while auto ancillaries have not gone up sharply like other auto stocks," says Mehraboon Irani, Sr. VP-Equity, FCH Centrum Wealth Managers.
Metal stocks jumped as prices increased in the LME. Hindalco has surged 4% to Rs 221. Sterlite has rallied 2.2% while Tata Steel has gained 2%, respectively.
However, realty and bankex are down 2% and 1.6%, respectively.
India's exports in October 2010 rose an annual 21.3% to $18 billion, while imports for the month grew 6.8% on the year to $27.7 billion, Government officials said on Monday.
OMCs rose as crude oil prices declined.
Asian markets ended higher. The Hang Seng jumped 1.8% to 23,637. Nikkei gained 2% at 10,013. Seoul Composite and the Shanghai Composite also went up over 1% each.
In Europe too, markets are trading in the green. On Wednesday, Britain offered to help Ireland to get over the eurozone crisis by providing fund over and above what it gets from the European Union. Globally, investors would be watching Spain's bond auction which would take place later in the day.
Telecom stock, Reliance Communications slipped after reports that the company benefitted the most from the arbitrary and unfair manner in which licences were given in 2008 were submitted by the CAG. RComm has plunged 5.6% to Rs 153.
Axis Bank's board of directors unanimously approved the acquisition by Axis Securities and Sales, a wholly owned subsidiary of the company, of the financial services business of Enam Securities, on Wednesday. The stock is down 3% at Rs 1,421.
Hero Honda has jumped 5.5% to Rs 1,915. Other auto stocks are in green. Maruti Suzuki and Tata Motors have added 1.7% each to Rs 1,425 and Rs 1,225, respectively.
Cipla and Bharti Airtel have added 3-4% each.
Larsen & Toubro, Infosys, Jaiprakash Associates and ITC are among the other gainers. Reliance is up 0.7% at Rs 1,038.
Meanwhile, ICICI Bank has shed 3.4% to Rs 1,161. ONGC has dropped 2.3% to Rs 1,263.
BSE market breadth is weak. Out of 3,061 stocks traded, 2,057 have declined while 931 have advanced.