Sensex recovered marginally from day’s low

The Indian markets saw a gap down opening at
19,603.09 level down by 145.08 points extending
yesterday’s losses on the back of negative global
markets that were reignited led by worries from US
mortgage defaults, slump US home prices hurting US
economy. The markets remained choppy moving in and
out of the positive territory during mid-afternoon trade as
European index too opened lower. Inflation data that was
released during afternoon too came higher at 3.11% than
the previous week’s figure. Hindalco Industries and
Larsen & Toubro declined sharply in late trade but
FMCG, Consumer Durables and Oil & Gas provided
support to the Sensex and the markets recovered
marginally towards the end with Sensex closing the day
in red at 19,698.36 level down by 86.53 points 0.44%.
BSE Oil & Gas surged 1.46% on expectation income
from processing crude oil into fuels will increase this
quarter. Essar Oil, HPCL, BPCL & reliance Industries
surged 21.56%, 5.56%, 1.84% & 0.23% to Rs 192.80, Rs
316.35, Rs 434.20 & to Rs 2881.65.
ITC remained in focus today and surged to Rs. 208 on
news that it is showing interest to buy out Parle Products
confectionary business.
Triveni Engineering jumped 2.35% to Rs 134.05 after the
Indian sugar maker, which also has a steam turbine
division, informed the Bombay Stock Exchange
yesterday its board would seek shareholders' permission
to raise as much as to 2.5 billion rupees through a sale of
securities.
Bharti Airtel gained 1.21% to Rs 912.95 on reports that
the company is not concerned about a drop in minutes of
usage seen in the fiscal second quarter as new costumer
additions are picking up well.
NSE benchmark Nifty 50 index closed at 5,906.85 points
down 0.09%.
The market breadth in today’s trade remained positive
with about 1909 shares advancing, 912 shares declining,
and 44 shares remained unchanged.
Currently PE of the Sensex stands at 25.47

Sentiment across Asia continued to remain weak on the
back of Wall Street closing in red. Asian stocks declined
led by exporters as the Yen strengthened against the
USD. Hang Sang lost the most to the tune of 1136.78
Points which is 3.95%, followed by Taiwan, Nikkei and
Jakarta. Infact whole of the Asian pack ended the day in
red.
European indices were down tracking the Asian and the
US indices. European pack was trading in red hitting twomonth
low as banks weighed on continued concerns over
their exposure to credit market problems.
U.S. indices closed in red continued its fall for the second
day on news on credit crisis clouding the economic data.
Wells Fargo & Co. said the housing market is the worst
since the Great Depression and investors speculated
Fannie Mae masked credit-market losses in its latest
earnings report. Yesterday, Barclay Capital said it will
write off USD 2.7 bn for assets related to credit market.
The Consumer Price Index (CPI) rose 0.3% in October in
line with forecast.