Friday, the Indian market has recovered significantly after opening sharply lower this morning. While weak global cues and concerns about the outlook for the global economy are weighing on investor sentiment, support from domestic financial institutions, short covering and bargain hunting are helping in the recovery.
After opening lower at 8,104, the BSE Sensex has recouped most of its losses. The index is now trading at 8,191, down 7 points or 0.08% and the S&P CNX Nifty is trading at 2,573, down 0.15%.
However, second-line stocks are trading deep in the red. On the BSE, the market breadth is extremely negative, with 451 advancers compared to 1191 stocks that are declining.
The broad-based BSE 500 index is down 0.29%, the small-cap index is losing 1.30% and the mid-cap index is moving down 1.14%.
Among the major losers, Ranbaxy Laboratories is losing 3.84%, ITC is declining 2.81%, Grasim Industries is moving down 2.35%, Tata Power is down 2.16% and DLF is down 2.08%.
Hindustan Unilever, ACC, Maruti Suzuki, NTPC, Reliance Industries, Reliance Infrastructure, Bharti Airtel, Tata Motors and ICICI Bank are the other prominent decliners.
However, IT stocks such as TCS, Wipro and Infosys, metal stocks Tata Steel, Hindalco, and Sterlite, construction-related stocks Larsen & Toubro and Jaiprakash Associates, and HDFC, Mahindra & Mahindra and State Bank of India are trading in positive territory.
Satyam Computers is surging up 7.12% after it received the regulatory approval to start a global bidding for inducting a strategic partner into the company. Housing Development and Infrastructure is losing 1.67% on reports that it rolled over Rs 2500 crore debt from commercial banks for the next 15-18 months.
Reliance Capital is declining 2.83% on reports that its unit Reliance Money will increase its stake in Wall Street Finance. Tata Steel is up 0.89% following reports that Tata group is planning to infuse $200 million of equity into Corus, its subsidiary, to meet all covenants agreed upon with the bankers.
Syndicate Bank is down 1.93% despite news that Life Insurance Corporation of India raised its stake in the bank to 9.27%. Bharati Shipyard is up 0.20% after it bagged an order worth Rs.2.81 billion from the ministry of defence to supply fifteen interceptor boats for Indian Coast Guard.
Geodesic is jumping 13.02% after the company proposed to buy back its own shares at a price not exceeding Rs.75 per share. Apollo Tyres is losing 2.31% even as it lifted a lockout at its Kalamassery plant in Kerala.
Mahindra & Mahindra is up 0.08% after the company bought back foreign-currency convertible bonds worth $6.5 million at a discount. ONGC is down 0.12% after it approved an investment of about Rs.3, 500 crore for putting in additional facilities at its oil fields in Assam and Western Offshore.
