Markets back in green at mid-session

Markets back in green at mid-session

New Delhi: Erasing early losses, the Bombay Stock Exchange Benchmark Sensex recovered to trade over 12 points higher at mid-session on fresh buying in stocks such as Reliance Industries and Infosys Technologies.

The 30-share Sensex, which lost over 105 points in the early morning trade, bounced back to trade 12.39 points, or 0.07% higher at 17,179.01 at mid-session.

The wide-based National Stock Exchange index Nifty, however was remained in negative zone with a marginal fall of 3 points at 5,134.

Brokers said covering-up of short positions by speculators and fresh buying in heavy-weight stocks helped Sensex to trade in positive territory.

The most-weighted Reliance Industries traded 0.66% higher at ,028, while Infosys Technologies recovered by 0.46% at ,685 after dipping to 2,635.05 in the opening trade.

Markets were trading lower, tailing weak Asian markets, with financials leading the decline ahead of the inflation data for February.

India’s wholesale price index probably rose 9.62% in February from a year earlier, a Reuters poll of 21 economists showed.

Top lender State Bank of India dropped 0.9% while leading private sector lender ICICI Bank shed 1.8%.

Mortgage lender Housing Development Finance Corp declined 0.9%. HDFC Bank bucked the trend and edged 0.3% higher.

By 10:06am the 30-share BSE index was trading down 0.36% at 17,104.23, with 19 of its components declining. The 50-share NSE index was down 0.4% at 5,114.35.

“Asian markets are weak. Also, there is no news flow to move the market," said Neeraj Dewan, director of Quantum Securities.

“Inflation and advance tax numbers should provide some cues," he added.

Corporate advance tax payment figures for the quarter ending March are expected to trickle in later in the day, giving a brief idea about their report cards in the period.

Investors were cautious after the benchmark rose for five straight weeks to 12 March.

IT bellwether Infosys Technologies declined 0.1%. The stock has outperformed the main index so far this year with a 2.5% rise while the latter dropped 2%.

Top vehicle maker Tata Motors climbed 0.2% after a senior executive told Reuters the company plans to offset rising commodity prices through price increases and trimming costs.

Oil and Natural Gas Corp was down 1.3% after a senior company official said the state-run explorer’s domestic oil output is seen at 24.9 million tonnes in the current financial year ending March, lower than the 25.76 million tonnes target.

In the broader market, declining shares outnumbered advancing ones in a ratio of 1.2:1 in volume of 64 million shares.

Asian stocks fell from near seven-week highs on Monday after weak US consumer confidence data overshadowed strong retail numbers and curbed demand for risky assets.