Markets end higher amid volatility; IT, FMCG, oil stocks up

12 May 2008

The markets have shown smart recovery in the last half an hour of trade amid huge volatility since morning. Technology, FMCG, oil, power and pharma stocks have supported the markets. However, realty, auto, midcap and small cap stocks remained in the negative terrain. Market breadth remained weak as well though some recovery happened. On the global front, Asian markets ended mixed. European markets were trading strong at the time of writing market report.

In the first half session, market recovered its morning losses but due to weak IIP nos, it got hammered, touched a day's low. March Industrial Growth declined at 3% from 8.6% in February while market expected at 5.7%. FY08 Industrial Growth also fell at 8.1% versus 11.6% (YoY). March Manufacturing growth was down at 2.9% from 16% (YoY).

But the Indian Rupee has helped the market to recover in late trade as technology stocks witnessed buying interest. The Rupee touched a low of 42.04 during the day and was trading at 41:98 per dollar at the time of writing market report.

The Sensex has recovered nearly 320 points from the day's low to close at 16,860.90, up 0.74% or 123.83 points. The Nifty recoverd nearly 100 points to finished the day at 5012.65, up 0.60%.

Technology stocks became the star performers of the day, BSE IT Index was up 1.48% to settle at 4,297.84 as buying interest seen in Mphasis, Satyam, Tech Mahindra, Wipro, Infosys, TCS and HCL Tech.

FMCG stocks ended with sweet gains, BSE FMCG rose 1.11% at 2,486.04. ITC, Tata Tea, Nestle, GlaxoSmith Con, Colgate, Dabur India and Britannia have given support.
 
Oil and gas stocks gained smartly after witnessed selling pressure in the morning trade. The BSE Oil & Gas Index was up 1.02% at 11,193.69 as Cairn India, Essar Oil, GAIL, Reliance and RNRL gained.