Key benchmark indices recovered sharply in afternoon trade. But the market came off the higher level shortly. The BSE 30-share Sensex was down 149.85 points. Improved industrial output data for July 2008 triggered a recovery from an initial sharp slide.
European markets which opened after Indian markets, edged higher. Asian markets which opened before Indian markets were in green.
Maruti Suzuki India and Bharat Heavy Electricals rose over 3% each. Capital goods stocks bounced back. Power and consumer durables stocks gained. IT stocks declined.
Industrial output rose 7.1% in July 2008 from a year earlier, above the previous month's 5.4% rise, data released by the government today, 12 September 2008, afternoon showed. The figure was above market expectations of a 6.5% growth. Manufacturing production rose 7.5% in July 2008 from a year earlier.
The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous weeks annual rise of 12.34%, government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.
At 13:19 IST, the BSE 30-share Sensex was down 149.85 points or 1.05% to 14,174.44. At the days low of 14,046.42 hit in mid-morning trade Sensex fell 277.87 points. At the days high of 14,433.20 hit in early trade, the Sensex rose 108.91 points.
The S&P CNX Nifty was down 8.40 points or 0.2% to 4,281.90.
The market breadth was negative on BSE with 1,348 shares declining as compared to 1,069 that advanced. 94 remained unchanged.
Among the 30-member Sensex pack, 17 declined while the rest gained.
The BSE Mid-Cap index fell 0.7% to 5,608.69 and BSE Small-Cap index fell 0.32% to 6,797.08.
Indias largest private sector firm in terms of market capitalization and oil refiner Reliance Industries fell 0.93% to Rs 1,978.25. The stock recovered from the sessions low of Rs 1,940.25.
Power stocks rose. Power Grid Corporation of India (up 3.11% to Rs 97.70), NTPC (up 2.45% to Rs 177.70), Tata Power Company (up 1.89% to Rs 1,030) and Reliance Power (up 1.18% to Rs 170.55) edged higher. However, Reliance Infrastructure declined 1.6% to Rs 976.10.
Consumer durables edged higher. Blue Star (up 1.62% to Rs 392.40), Lloyd Electric (up 0.39% to Rs 76.40) and Titan Industries (up 0.14% to Rs 1,180.05) edged higher.
BSE IT index fell 3.54% to 3,849.32 and was the top loser from the sectoral indices on BSE. IT stocks declined on overnight fall in their American depository receipts (ADRs) and after foreign brokerage house UBS said a sharp and sudden appreciation of the dollar against the British pound and euro would hit IT firms' revenue in dollar terms by 1-2%. Infosys (down 4.89% to Rs 1,663.40), Satyam Computer Services (down 3.04% to Rs 408.45), Wipro (down 1.03% to Rs 422.50), Tata Consultancy Services (down 1.72% to Rs 822) edged lower.
Infosys ADR fell 5.13%, Wipro ADR lost 4.65% and Satyam Computer ADR shed 2.65% yesterday, 11 September 2008.
Capital goods pivotals rose after the latest data showed that the capital goods sector clocked a robust 21.9% growth in production in July 2008. Indias largest engineering and construction firm by sales Larsen & Toubro rose 0.56% to Rs 2,683. The stock recovered from the sessions low of Rs 2,627.10. Indias largest electric equipment maker by sales Bharat Heavy Electricals rose 3.77% to Rs 1,727. It was the top gainer from the Sensex pack. The scrip recovered from the sessions low of Rs 1,665.
Hindalco Industries (up 1.31% to Rs 123.65), ITC (up 1.07% to Rs 193.70), Sterlite Industries (up 0.21% to Rs 504), Tata Steel (up 0.46% to Rs 528.70) edged higher from the Sensex pack.
ICICI Bank (down 3.02% to Rs 665.50), HDFC (down 2.45% to Rs 2,211), DLF (down 1.95% to Rs 475.60), edged lower from the Sensex pack.
Indias largest tractor maker by sales Mahindra & Mahindra fell 0.59% to Rs 560.05. The comopany said on Thursday it has decided to transfer the logistics business to Mahindra Logistics, a wholly owned subsidiary of the company for a consideration of Rs 32 crore.
Indias largest telecom services provider by sales Bharti Airtel fell rose 0.15% to Rs 777.85. It recovered from sessions low of Rs 744.The company added 2.7 million users in the month of August 2008 taking its total subscriber base to 74.8 million.
US crude for October 2008 delivery rose 45 cents to $101.37 a barrel today, 12 September 2008 as the markets kept a watchful eye on the path of Hurricane Ike that could disrupt refineries and production in the United States for weeks. It lost $1.71 a barrel on Thursday, 11 September 2008 after falling to $100.10, its lowest level in 5-month in intra-day trade.
European markets opened on a positive note. Frances CAC 40, Germanys DAX and UKs FTSE 100 were up between 0.74% to 1.25%.
Asian markets were trading higher today, 12 September 2008. China's Shanghai Composite, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Japan's Nikkei, Singapore's Straits Times and South Korea's Seoul Composite were up by between 0.83% to 2.4%.
US stocks rose on Thursday, 11 September 2008, as a report that major U.S. investment bank Lehman Brothers is shopping itself to possible suitors, including Bank of America, drove a last-minute rebound in financial shares. The Dow Jones gained 164.79 points, or 1.46%, to 11,433.71. The S&P 500 index advanced 17.01 points, or 1.38%, to 1,249.05, while the Nasdaq Composite index added 29.52 points, or 1.32%, to 2,258.22.