Stocks recouped most of the day’s losses to end marginally lower Thursday, led by Reliance Industries, after food inflation for the week ended December 3 eased to a 4-year low of 4.35%.
Further, hopes that the Reserve Bank of India is likely to keep interest rates unchanged at its monetary policy review Friday and firm gains in European shares also aided sentiment.
The 30-share Sensex which touched an intra-day low of 15,596 provisionally closed at 15,851.30 down 29.84 points or 0.2%. The 50-share Nifty which touched a low of 4,674 provisionally ended at 4,752.05 down 11.20 points or 0.2%.
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(Updated at 14:37 hrs)
Markets recovered in late noon trades with heavyweight - Reliance Industries turning positive. The Sensex after touching a low of 15,596 rebounded. The index was down 29 points at 15,852. Nifty is down 10 points at 4,753.
Asian markets dropped. Nikkei slipped to its lowest in two weeks as worries about European debt woes hit risk appetite, with investors looking to a Spanish debt auction later in the day. Hang Seng was down 1.7% and Shanghai Composite slumped 2%.
Markets await the third advance tax payments due today. Investors will also look at Friday's RBI policy review to gauge market sentiments.
India's food inflation eased to 4.35% in the year to December 3 -- its lowest reading since late February 2008 -- from an annual 6.60% rise in the previous week, government data showed today.
Foreign institutional investors (FIIs) sold shares worth Rs 140.13 crore on Wednesday. Rupee continued to be weak and was trading at 53.92 versus the dollar around noon.
BSE consumer durables, capital goods and auto indices were down 1-2% each. However, FMCG index saw some buying and was up 0.6% at 4,025.
Bharti Airtel tumbled 3.6% to Rs 336 on reports telecom regulator Telecom Regulatory Authority of India (Trai) is in the process of taking legal action against Bharti Airtel for violating the mobile number portability (MNP) guidelines.
Banking, auto and metal shares were in the red with major names like Sterlite, SBI, Tata MOtors, Maruti and Mahindra & Mahindra slumping 1-3% each.
Reliance recovered to Rs 746. Earlier in the day the stock had slipped on reports that RIL has seen gas output from its eastern offshore KG-D6 gas fields drop to a fresh all-time low of 39.80 million standard cubic metres per day.
Tata Power was the biggest gainer among Sensex stocks. The stock was up 4% at Rs 90. Coal India, Hindustan Unilever, NTPC and HDFC added 1-3% each.
A fall in global gold prices took jewellery stocks lower. Titan slipped 3.7% to Rs 161. Non-banking financial institutions such as Mahindra & Mahindra Finance Services and Muthoot Capital Services dropped in trades.
Anil Ambani – led Reliance Group (ADA) stocks – Reliance Infrastructure, Reliance Capital and Reliance Communications are trading at 52-week lows, while Reliance Power has touched a new all-time low on the Bombay Stock Exchange. Reliance Capital dropped 1.6% while Reliance Infra advanced 0.5% after recovering from the day's low.
BSE market breadth was negative. Out of 2,718 stocks traded so far, 1,848 declined and 738 advanced.
