Earlier in your day, the Nifty touched a high of 5, 114 in opening deals and thereafter slipped to some low of 5, 006 on profit-taking. The markets, however, bounced back upon fresh buying in RIL, ICICI Bank and State Bank of India. Earlier noon, the markets received a fresh jolt after the European bourses opened within the negative note.
Meanwhile, Asian markets ended in the red, snapping two periods of gains. The Nikkei Stock Average, the Hang Seng and the Shanghai Amalgamated indices closed down over 1% each. European markets also opened lower; FTSE, CAC and DAX slipped between 1-2% each as investors turned cautious in front of the US nonfarm payrolls data. Analysts expect 53, 000 nonfarm jobs in July, following a gain of 117, 000 in July.
Back in India, a slew of negative macro indicators also weighed about the markets. The HSBC Markit, India’s Manufacturing PMI fell to 52. 6 within August against 53. 6 reported in July due to decline in purchases amid waning global demand. The Inflation for the week ended August 20 surged in order to 10. 05% due to sharp rise in vegetable prices raising concerns how the Reserve Bank of India would continue to tighten further. The RBI offers raised rates 11 times since March 2011 to contain high inflation.
THE K Prabhakar, Senior Vice President Equity Research from Anand Rathi said, "Indian markets have bucked trend simply because they were catching up with the global markets, short covering in heavyweight Dependence Industries and banking stocks have helped the markets. " Prabhakar added, in the event that Nifty holds above 4, 960, than index can easily scale to 5, a hundred and fifty.
Reliance Industries, ICICI Bank and ITC were up between 1-3% each and contributed 90 points about the Sensex. However losses in BHEL, TCS and Infosys, were capping the increases.
IT shares were the worst hit on concerns of slowdown in THIS spending due to debt concerns in Europe and growth slowing down in america. Besides the frontline stocks, HCL Technologies, Tech Mahindra and Core projects had been down over 1% each.
High beta metal shares were leading the increases. JSW Steel was the top gainer, up 5%, followed by Sterlite Sectors and Bhushan steel, up over 4% each.
Market breadth was positive, 1, 522 shares advanced, for 1, 190 shares which declined on the BSE.