Market Recovers 15 Apr

At 11:01 hours IST, the benchmark indices recovered from the lows of the day and started trading in a positive terrain. Buying in capital goods, cement, realty, telecom, auto, FMCG, power, select metal stocks and in stocks like SBI and Reliance Industries were supporting the markets. However, shares of technology companies as well as HDFC Bank, HDFC, Sterlite were under pressure.
The Sensex was trading at 11,003, down 36 points and the Nifty was trading at 3,398, down 15 points, at 11:01 hours IST.
Broader indices continued their outperformance today as well; BSE Midcap and Small cap indices were up 2.6-3%. The market breadth was strong; about 2103 shares advanced while 874 shares declined. Nearly 115 shares were unchanged.
Among the midcap stocks, Lanco Infratech jumped 21.69%. Nirma, Rolta, IVRCL Infrastructure and Jai Corp were up 10-16%.
In the small cap space, CMC shot up 37.54%, after Q4 numbers. Aegis Logistics, Swaraj Mazda, Consolidated Construction and Kewal Kiran gained 15-20%.
Among the sectoral indices, the BSE IT Index was down 3.8%. However, Capital Goods, Realty, Auto, Power, Healthcare and FMCG indices gained 1-1.9%.
Infosys Technologies fell nearly 4%, post disappointing guidance for FY10 and Q1. The management feels that the guidance will be flat to marginally negative in constant currency terms. The company sees its operating margins to fall by 300 bps while its net profit margins are likely to fall by 200 bps. It sees and average drop in prices to be around 6–6.5%. The reason for de-growth, the management said, was the delay in decision-making.
Asian markets were trading weak. Hang Seng and Straits Times declined 2% each. Seoul Composite was down 1.9% and Nikkei fell 1.3%. Shanghai was down 0.8% and Taiwan Weighted fell 0.5%