Markets recover as oil crashes; ADAG stocks down on 2G scam

• The key benchmark indices edged higher in early trade as a sharp fall in crude oil prices on Thursday eased macroeconomic worries. India

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imports most of its oil requirements. Bargain hunting emerged after the last nine days’ losing streak. Asian stocks, however, have declined.

• The BSE Sensex was higher by 206 points at 18,416.61 while the NSE Nifty was at 5516 up 55 points.

• The market breadth was strong with 1494 advances, 565 declines and 66 stocks remained unchanged. Index heavyweight Reliance Industries edged higher.

• Among the gainers in the index where the Banking stocks like ICIC Bank, Axis Bank and PNB which are largely up on profit booking. Public sector oil marketing companies too has done well due to the sharp drop in crude oil prices.

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• Among the 30-member Sensex pack, 24 advanced while rest of them declined. ICICI Bank, M&M, Tata Motors and BHEL rose between 2% and 4.3%. Sterlite was the biggest loser, falling by over 5% in line with the slump in commodity prices. Hindalco too has fallen by over 1.8% for the same reason. Bharti, which announced its quarterly numbers yesterday, fell 1.2% as a number of broking firms have reduced the price target.

• News has hit the market that Jyothy Labs has bought 51 percent in Henkel India for Rs 570 crore, including the debt of the company. Cipla meanwhile announced its results. The company’s net profit has fallen 22.3% on a 22.6% increase in sales. The company has provided for Rs 95 crore as an exceptional item in the fourth quarter. After an initial fall, the stock has recovered and is trading higher by 1.33%.

• Anil Ambani group(ADAG) stocks have started falling with the start of the 2G trial involving Kanimozhi. Reliance Communication fell 2.4%, Reliance Power by 2% and Reliance Capital by 2.5%.

• Asian stocks declined on Friday after Wall Street was hit by a massive sell-off in commodities as a surge in weekly claims for jobless benefits intensified worries over a faltering economic recovery. The key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan fell between 0.23% and 1.96%.

• The sharp overnight sell off in commodities have petered off on Friday led by a small pullback in gold and silver.