Markets end in green on recovery in rate sensitive sectors

The markets ended with modest gain on the back of sharp recovery in rate sensitive sectors and shrugged off 25 bps repo rate hike by RBI. It has started badly this morning due to weak global cues and repo rate hike from RBI, but has not turned out as a bad session for the market. After that big gap down, markets started sharp recovery in the second half of session due to better than expected IIP data. All beaten down stocks in morning session have rebounded smartly in late trade, which seemed like there was some value buying at lower levels that has pulled back both indices to close in the green. Positive European markets also fueled some positive signals.

IIP data played key role, which has been better than expected. April IIP growth stood at 7% as against 11.3% in the same period of earlier year and 3.9% in the month of March 2008 while CNBC-TV18 expected at 6.4%. April Manufacturing growth was at 7.5% versus 12.4%. March IIP growth data revised to 3.9% from 3% earlier.

The Sensex has recovered nearly 437 points from an intraday low of 14,747.99 and turned back above 15000 mark in late trade. It closed at 15,250.20, up by 64.88 points or 0.43%. The Nifty slipped below 4400 mark in opening trade but managed to recover nearly 132 points from day's low. It was up 15.75 points or 0.35% to settle at 4539.35.

Amongst frontliners, Reliance Petroleum was up 4.81%, BHEL 2.52%, Reliance Infrastructure 2.40%, Tata Steel 2.35%, SBI 2.31%, Tata Steel 2.78% and Wipro 2.24% while Suzlon Energy fell -6.77%, DLF -4.03%, HDFC Bank -3.67%, NALCO -3.63%, Ranbaxy Labs -3.08% and Ambuja Cements -2.61%.

Rate sensitive sectors like banking, realty and auto had beaten down hugely, indices down nearly 3-5% in first half of session as RBI has hiked repo rate by 25 bps to 8% from 7.75% earlier. But later half of session was significant, these stocks have shown smart rebound.

Most active shares on the bourses were Reliance Industries, DLF, BHEL, Ranbaxy Labs and Reliance Petroleum.

Turnover traded by the markets stood at Rs 72144.77 crore. This includes Rs 13596.9 crore from NSE Cash segment, Rs 52333.46 crore from NSE F&O and the balance Rs 6214.41 crore from BSE Cash segment.

Asian markets are weak; Nikkei was down 2%, Shanghai 3%, Hang Seng 2.5% and Taiwan Weighted 3%.