The frontline Indian indices have recovered from session lows and are trading slightly higher in mid afternoon trade. The NSE Nifty is back above the crucial 5500 level. The turnaround in the Indian market has come after the European markets accelerated after a flat start. Barring Japan and China, most Asian markets finished the day lower.
At 2:21 pm (IST), the BSE Sensex was at 18,204, down 59 points over the previous close. It earlier touched a day’s high of 18,209 and a day’s low of 18,005. It opened at 18,127.
The NSE Nifty was quoting at 5,489, down 15% over the previous close. It earlier touched a day’s high of 5,519 and a day’s low of 5,481. It opened at 5,490.
The BSE Small-Cap index and the BSE Mid-Cap index were trading down 1% and 0.26%, respectively.
Earlier, the Indian market declined, tracking weakness in Asian peers and high oil prices. Markets in the US and Europe also fell on Wednesday amid concern that the long-running debt crisis in the eurozone was having an adverse impact on the global economy.
Doubts over the effectiveness of the second bailout for Greece is also acting as a dampener for the world equity markets following a strong start to the year. The market is also jittery about the outcome of the Uttar Pradesh elections and its implications on the upcoming Union Budget. Inflation remains sticky, stoking speculation over the RBI's next policy move at a meeting next month.
The advance-decline ratio is still unfavourable for the bulls as the Small-Cap and Mid-Cap indices remain under pressure.
The Power and FMCG indices on the BSE are up 1-1.5%. The Oil & Gas index is up almost 1%. Banking, IT and Consumer Durables indices are up ~0.5% each. The Realty index is the biggest laggard, down 1.5% while the Metals index is down ~0.8%.
The INDIA VIX on the NSE is down ~5% at 25.45 after being as low as 24.58. It had closed at 26.80 on Wednesday.
State Bank of India (SBI) shares rose more than 2% after an official at the country's top lender said that the bank has not given further loans to debt-laden Kingfisher Airlines. On the other hand Kingfisher Airlines shares fell as much as 13%.
Bharti Airtel was down after Econet Wireless filed a lawsuit in Nigeria seeking damages of US$3.1bn for disputed acquisition of a Nigerian unit. Bharti Airtel said that the litigation is still ongoing.
DB Realty shares slid United Arab Emirates telecom operator Etisalat said that it would shut down the operations of its telecoms joint venture with the Indian company. Etisalat DB Telecom, venture between DB Group and Emirates Telecoms, will shut down network and services.
Subex shares rose after the company said that it has won a multi-million dollar deal to provide fraud management solution to an African operator.
Alfa Laval shares spurted after the company's delisting offer closed yesterday. It will announce the delisting price on or before March 5. Shares of Alfa Laval surged 20% to touch Rs. 3,385, its lifetime high in early trade on Thursday on hope that the Sweden based company may increase the buyback price in its proposed delisting offer.
Shareholders bid up to Rs. 3,850 a piece against the floor price of Rs. 2,045. Alfa Laval has no obligation to accept the bids above the floor price. The parent holds 88.77% stake in the Indian subsidiary.
Firstsource Solutions shares rose for a third straight day. The company yesterday said that speculation about three major shareholders close to selling stakes are unfounded.
Jet Airways was up after the Government formally allowed domestic carriers to import jet fuel to help cut operating costs by saving as much as 30% in local taxes. Also, the carrier's January 2012 market share was at 28.8%, as per DGCA.
Lupin shares advanced after it forecast US$3bn in revenue by 2015. The Company and its subsidiary Lupin Pharmaceuticals Inc. entered into a settlement agreement with Santarus Inc. and Depomed Inc. to resolve pending patent litigation involving Glumetza in the strengths of 1000 mg and 500 mg, Lupin said in a statement.
Suzlon was down after the company's convertible bonds fell at the fastest pace since 2009. The company signaled that it will fall short of funds to repay debt maturing this year, according to reports.
South Korea's Kospi Index lost 1%, while Australia’s S&P/ASX 200 index slipped 0.2%. Hong Kong’s Hang Seng Index dropped 0.8%, and the Shanghai Composite index edged up 0.1%.
However, Japan’s Nikkei Stock Average climbed 0.4%, erasing early-session losses as exporters extended the week's gains from a weak yen.
The sentiment was cautious after data released yesterday showed continued contraction in China's manufacturing sector for February while a composite PMI for the debt-stricken eurozone too decelerated in February.
The weak eurozone data reminded investors that the region's troubles have not ended with the second bailout for Greece.
Taiwan cut its 2012 GDP growth forecast yesterday while US sales of previously owned houses missed economists’ forecasts, adding to the worries over a worldwide economic slowdown.
Political uncertainty weighed on the Sydney market, as Prime Minister Julia Gillard said that she would hold a vote for leadership of the ruling Labor Party and government next Monday following the resignation of Foreign Minister Kevin Rudd.
European stock markets opened mostly flat but gradually started rising. The Stoxx Europe 600 index was up ~0.4% at 265.53.
The German DAX 30 index rose 0.8%. The French CAC 40 index and the FTSE 100 index in the UK were up ~0.5% each.
The Ifo Institute's German business climate index jumped to 109.6 in February from a reading of 108.3 in January, news reports said today. Economists had forecast a reading of 108.8.
The euro extended a gain versus the dollar following the data. It was up ~0.5% at US$1.3319.