RECOVERY MODE

After the rough ride in early deals, local bourses have staged dramatic recovery from the day's low point owing to the bargain hunting of underpriced stocks. With the slew of positive reports stating the intactness of the India's growth story, investor's showcasing some courage have went out and bought out stocks at lower value even as the global investors remain risk averse. The 17% fall in crude prices over last one month due to concerns related to global slowdown amidst debt crisis in Europe and US is the primary reason for hope. On the global front, turmoil continues, the US stocks plunged on Monday, with the S&P down more than 6% for its largest drop in nearly three years on rising fears of a recession exacerbated by the United States loss of its triple-A credit rating. Meanwhile, the Asian shares plunged as investors dumped riskier assets in a global rout triggered by fears that political leaders are failing to tackle debt crises in Europe and the United States. The US future indices too are showing a downtick in the screen trade. Back home, stocks from Auto, FMCG and Public Sector Undertaking counters are the one's that are trading with milder losses, while stocks from Information Technology, TECk and Healthcare counters continue to reel under pressure. The 30 pack index-Sensex-on BSE recouping over 250 points from day's low is currently trading above the 16700 mark, while the 50 share index on NSE-Nifty- after opening sub 5000 mark is currently trading above it. Meanwhile, the broader indices too are trading in sync with larger counterparts losing over 1.15% each. The overall market breadth on BSE was vastly in the favour of declines which smashed advances in the ratio of 1924:412, while 77 shares remained unchanged.
 The BSE Sensex is currently trading at 16,763.50, down by 226.68 points or 1.33%. The index has touched a high and low of 16,781.20 and 16,432.00 respectively. 6 stocks were advancing against 24 declining one's on the index. The broader indices too were trading in sync with the larger counterparts; the BSE Mid cap and Small cap indices were down by 1.33% and 1.89% respectively.
Since buying was witnessed across the board, however, IT down by 3.46%, TECk down by 2.95%, HC down by 2.19%, Metal down by 2.16% and Realty down by 1.39% were the top losers on the index.
M&M up by 2.23%, Bajaj Auto up by 1.53%, ONGC up by 1.15%, Maruti Suzuki up by 0.51% and DLF up by 0.05% were the top gainers on the index.
On the flip side, TCS down by 4.44%, Sun Pharma and Wipro down by 3.60%, Infosys down by 3.48%, Tata Motors down by 3.08% and Hindalco Industries down by 3.07%.
Meanwhile, the prices of petrol are expected to reduce in India as the prices of crude oil in the international markets are declining sharply. The Oil Minister S. Jaipal Reddy on August 8 indicated that India which is the world's fourth largest consumer of petroleum product may reduce the domestic petrol prices. 'If prices globally come down sharply, and in a stable way, naturally the price of petrol will be adjusted downwards,' however by adding further he said, 'the softening trend must be stable.'
Last year, the government had deregulated the petrol prices, after the deregulation, the domestic prices are linked to the international crude oil prices. In June, when India changed taxes, bringing domestic prices on par with market rates, Brent crude was trading at about $106 barrel, almost equal to level as August 8 prices.
The Oil Minister said the decline in global oil prices was still not enough for India to implement a cut in domestic pump prices. In May, State Owned Oil Marketing Companies (OMCs) have hiked the petrol prices by Rs 5 due to the hovering international crude oil prices. Crude oil reduced by more than 3% due to the fear of economic slowdown in the US economy after the degradation of sovereign credit of US by the top-tier credit rating Standard & Poor's.
'Our (assumption) was that oil prices for the year would be $100 per barrel. That level has not been reached,' Reddy said.
The S&P CNX Nifty is currently trading at 5044.50, down by 74.00 points or 1.45%. The index has touched a high and low of 5,055.30 and 4,946.45 respectively. There were just 11 stocks advancing against 39 declines on the index.
The only gainers of the Nifty were Ambuja Cement up by 1.96%, M&M up by 1.94%, Bajaj Auto up by 1.54%, ONGC up by 1.17% and ACC up by 0.71%
TCS down by 4.46%, Reliance Power down by 4.30%, Reliance Infra down by 3.92%, Infosys down by 3.870% and Reliance Capital down by 3.66% were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite was down by 1.10% to 2,498.94, Hang Seng was down by 6.01%, Jakarta Composite was down by 2.67%, KLSE Composite was down by 2.39%, Nikkei 225 was down by 2.23%, Seoul Composite was down by 3.51% and Taiwan Weighted was down by 0.12% .