Mumbai, Jan 29: The markets shrugged off the RBI's move to hike the CRR by 75 bps and ended the day marginally higher.
Banking and realty stocks helped the markets through recovery.
The 30-share BSE Sensex shut shop at 16357, up 50 points and NSE Nifty closed at 4882, up 15 points.
On easing concerns of rising interest rates, capital goods and select auto stocks traded in the positive zone supporting the markets.
4: 26 PM
Strong European cues help markets recover
European markets opening on a strong note has helped the Indian benchmarks recover further from the earlier low. The Sensex recovered over 250 points and the Nifty over 75 points.
However, selling in metal, technology, telecom, pharma and FMCG stocks forced the markets to dip marginally.
At 1:40 pm, BSE Sensex was trading at 16241, down 65 points and NSE Nifty was at 4848, down 18 points.
In the banking space, ICICI Bank surged 5 per cent, HDFC, Axis Bank and PNB gained 1.2 to 1.9 per cent, SBI went up 0.55 per cent and HDFC Bank was up 0.3 per cent.
Gaining from positive numbers, Siemens shot up 5 per cent.
In the capital goods space, BHEL gained 2.5 per cent and ABB was up 3.5 per cent, while DLF rose 2.3 per cent and Unitech went up 1.1 per cent in the realty segment.
Surging by 5 to 6.9 per cent, the midcap gainers were GNFC, Piramal Health, Gammon Infra, Gujarat Flourochem and Aban Offshore. However, IVRCL Infrastructure, Bajaj Hindusthan, Dishman Pharma, KGN Industries and Jain Irrigation declined 4.6 to 6.8 per cent.
The smallcap gainers were Kwality Dairy, KNR Construction, Panyam Cements, MSK Projects and Mount Everest up 7 to 10 per cent.
The losers were SREI Infra, Elpro Int, Gee Kay Finance, AP Paper Mills and Sanwaria Agro which declined 6 to 10.8 per cent.
Sensex slips on RBI CRR move, retraces quickly
In an impulsive reaction to the RBI's move to hike the Cash Reserve Ratio (CRR) by 75 basis points (bps) to 5.75 per cent, Sensex shed 300 points but quickly baounched back on buying.
At 11: 27 am, BSE Sensex was trading at 16, 159, down 147 points and NSE Nifty was at 4826, down 40 points.
Buying was seen in BHEL, ICICI Bank, SBI, HDFC and DLF along with cement stocks. The most active shares were Aban Offshore, Tata Steel, ICICI Bank, SBI, L&T and Reliance Industries.
Wipro, Patni Computer, HCL Tech, Tech Mahindra, TCS and Infosys declined by 2.5 to 4.5 per cent in the IT sector, while MTNL, Bharti Airtel, Reliance Communications, Tata Teleservices and Idea Cellular dipped 0.76 to 2.3 per cent in the telecom pack.
In the metal segment, Jindal Steel, Hindalco, Tata Steel, Sterlite Industries, SAIL and NALCO slipped 1.5 to 4.2 per cent.
Among the auto stocks, Tata Motors tumbled 3.40% ahead of third quarter while Bharat Forge, Ashok Leyland, Apollo Tyres, M&M, Hero Honda and Maruti Suzuki lost 1 to 2.7 per cent.
In the FMCG space, the losers were HUL down 4.48 per cent, Britannia, Tata Tea, Godrej Consumer and ITC down 1 to 2.5 per cent.
The midcap gainers were Jet Airways, Cadila Health, GNFC, Oriental Bank and Colgate up 2.5 to 3.5 per cent. The losers were IVRCL Infrastructure, Bajaj Hindusthan, Jain Irrigation, Madras Cements and Deccan Chronicle down 5.7 to 7.8 per cent.
In the smallcap arena, Vesuvius India, Honda Siel, ABG Shipyard, Bharati Shipyard and Graviss Hosp shot up 5 to 10 per cent while SREI Infra, Orbit Corporation, Bombay Burmah and Vindhya Telelink declined 6.7 to 9 per cent.
11: 57 AM
Obama's statements spook Indian markets
After the Nifty broke its six-session losing streak on Thursday, Jan 28, the benchmark has opened the day in the red ahead of monetary policy.
The markets also started weak due to US president Barack Obama statements on technology sector about outsourcing.
Selling was seen across all sectors. The major draggers were technology, realty, metal, pharma and infrastructure as their respective indices slipped 2 to 3 per cent.
At 9: 24 am, NSE Nifty was trading at 4799, down 67.95 points and BSE Sensex was at 16087, down 219 points. Down over 2 per cent each, the broader indices too were trading in the negative zone.
HDFC, ICICI Bank, ONGC and ITC were the only largecap gainers.
The losers were HCL Tech down 6.23 per cent, Tata Steel, Wipro, Unitech, Jaiprakash Associates, Tata Motors and DLF down 2.7 to 3.4 per cent.
The midcap gainers were Novartis India, Colgate, State Bank Mysore, STC India and Apollo Hospital up by 0.7 to 2.7 per cent.
The losers among the midcaps were Bajaj Hindusthan, Madras Cements, IVRCL Infrastructure, GMDC and Gujarat NRE Coke down 5 to 9 per cent.
In the smallcap arena, Oscar Investment shot up 15.6 per cent. Honda Siel, CMI FPE, Hind Nat Glass and Garden Silk Mills were up 3 to 8 per cent, while SREI Infra, Falcon Tyres, Gee Kay Finance and Dharani Sugars plunged 8 to 11 per cent.
The Reserve Bank of India (RBI) is expected to announce the monetary policy around 12 pm on Friday, Jan 29.
9: 54 AM