Benchmark indices continue to witness further recovery

The benchmark equity indices continue to show some recovery mood in the late afternoon session, helped by recovery in index heavyweights like, RIL, Jindal Steel, Tata Steel etc. However, the other Asian markets settled in the red with deep cuts and European markets were also trading lower while US Dow futures shed more than 200 points in screen trade. Back home, all the sectoral indices barring Oil &gas were trading red; realty stocks saw the steepest cuts. A few stocks from banking, capital goods metal and IT sectors have recovered some lost ground. Meanwhile, stocks from midcap and smallcap sections are still languishing with deep cuts and trading in negative territory due to sustained selling pressure. The market breadth on the BSE was negative; the losers thrashed the gainers in a ratio 1948:781 and 95 shares were unchanged.

Reliance Industries moved up in trade today. The company is reported to have paid Rs 1054 crore in the fourth and final installment due on March 15, 2010 against Rs 770 crore in the similar quarter previous year as advance corporate tax. Also, Tata Steel has paid higher advance corporate tax for the fourth quarter. The company has paid Rs 513 crore versus Rs 406 crore. IDBI Bank trading in green as the bank has paid higher advance corporate tax for the fourth quarter. The company has paid Rs 216 crore as advance corporate tax, higher by 764% as compared to Rs 25 crore paid during same quarter last year.

Rice companies, LT Foods, KRBL and Kohinoor Foods, are trading higher on the BSE on reports that Japanese demand is set to rise as the recent tsunami and earthquake in Japan had badly hit the rice producing regions there. Economists are already predicting that not only will Japanese demand increase, but with the loss of production, foreign sources will need to be tapped to feed the Japanese people.

The BSE Sensex declined 188.63 points or 1.02% at 18,222.97. The index touched a high and a low of 18,326.33 and 17,920.55, respectively.

The BSE Mid-cap and Small-cap indices plunged 1.07% and 1.12%, respectively.

All the sectoral indices on the BSE barring Oil & Gas, which was up by 0.93% were trading in the red. Realty down 2.32%, Auto down 1.77%, Power down 1.74%, Information Technology (IT) down 1.62% and Metal down 1.57% were the major losers.

The top losers on the Sensex were Maruti Suzuki down 2.89%, DLF down 2.61%, JP Associates down 2.55%, Tata Power down 2.53% and Sterlite Inds down 2.36%; while RIL up 2.42%, Reliance Communications up 1%, Hero Honda up 0.15% and Jindal Steel up 0.11% were the only gainers on the index.

Reliance Communications surged one percent as on its plan to launch its 3G services in 17 major towns in Orissa by the end of this month. The company is planning to launch affordable 3G in 13 circles by the end of the current quarter and cover all the 22 telecom circles by the end of 2011 for establishing nationwide presence next year through associations with other 3G licensees in the balance nine telecom circles.

The S&P CNX Nifty tumbled 51.90 points or 0.94% at 5,479.60. The index touched high of 5,479.60 and a low of 5373.65 respectively.

The top losers on the Nifty were Sesa Goa down 3.86%, Maruti Suzuki down 3.19%, RPower down 2.91%, Tata Power down 2.77% and M&M down 2.72%.

On the other hand, Reliance Inds up 2.46%, Relinace Capital 1.93%, Sun Pharma up 1.05%, Reliance Communication up 0.95% and Siemens up 0.94% were the major gainers on the index.

All the Asian markets settled in the red with deep cuts. Shanghai Composite tanked 1.38%, Hang Seng tumbled 2.86%, Jakarta Composite sank 1.27%, KLSE Composite dipped 0.75%, Nikkei 225 plunged 10.55%, Straits Times trimmed 2.63%, Seoul Composite dropped 2.40% and Taiwan Weighted plummeted 3.35%.

European markets too were trading in red with sharp cuts. FTSE shed 1.86%, DAX declined 3.21% and CAC-40 trimmed 3.06%.

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