Sensex managed to recover

Today Sensex managed to recover more than half of its losses in the last couple of hours of trade and ended the day on lower note with 148 points down as European shares moved off from the lows also US index futures rose.  Bharti Airtel, SBI, Infosys and Tata Steel made a sharp rebound later in the day.

Index heavyweights Reliance Industries and L&T came off lows. Steel makers Tata Steel and Jindal Steel & Power recovered. IT stocks also came off lows on a weak rupee

Among others private banks, capital goods, oil & gas, private financial, realty, power, select technology, auto and metal stocks witnessed selling pressure.

Bajaj Auto Ltd skid by 1.2% at Rs 1615 after reporting a 6% increase in profit after tax to Rs 726 crore for the second quarter ended September 30, compared to the same period last fiscal. The company had posted a net profit of Rs 682 crore in the same quarter in 2010-11.

DLF, IDFC and Jaiprakash Associates were among top four losers, ending 3.5% lower also India’s largest private bank ICICI Bank fell 3%. However, SBI gained 0.9% at close after claims that finance ministry is finalising massive PSU bank recap plan.

UltraTech cement came out with its Q2FY12 result and was down by 0.95 percent. The sales for the quarter witnessed decent growth on YoY basis because of lower base effect. However performance remained subdued on the sequential basis on account of lower sales volume, and lower realization due to slowdown in demand.

HDFC though remained on top of the selling list, falling over 4% post National Housing Bank (NHB) notification, which said there should not be penalty on pre-payment of loans from housing finance companies and should have uniform interest rates for all customers irrespective of the time of loan taken.
 
Asian stock markets today ended on the lower note, after the increased concerns over Europe's ability to come up with a credible fix for its debt crisis also U.S. Federal Reserve issued a gloomy economic outlook which added to the fall.

European stocks declined for the third time in four days as splits emerged among the region’s leaders on a plan to end the debt crisis. European leaders are going to meet on Oct 23 on the issue to provide austerity measure in order to bailout the debt crisis region in Europe. 
 
The Dow Jones Futures is currently trading 180.05 points or 1.56 per cent up at 11577 indicating a positive sentiment in the US markets.

In conclusion we believe that market will look at two major events one from Europe as European Union (EU) leaders are meeting on Sunday and the ongoing Q2 results which may give rise to market speculation on the outcome of both the events.

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