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Sensex Stages Modest Recovery After Falling 280 Pts: Happiest Minds Make Sparkling Debut

After opening with a big negative gap on weak global cues, the Indian stock market pared some losses Thursday morning, but was still notably down in the red as the mood continued to remain bearish amid lingering worries about growth.

Power, banking, capital goods and realty stocks were among the notable losers. Healthcare and information technology were finding modest support.

The benchmark BSE Sensex, which tumbled by about 280 points in early trades, recovered to 39,158.52, but was still down with a notable loss of 144.33 points or 0.37%.

The National Stock Exchange's Nifty was down 37.95 points or 0.33% at 11,566.60, about 40 points off an early low of 11,520.50.

On Wednesday, the Sensex ended up 258.50 points or 0.66% at 29,302.85. The National Stock Exchange's Nifty closed with a gain of 82.75 points or 0.72% at 11,604.55.

Hindalco was down more than 2.5%. Power Grid Corporation, ICICI Bank, HDFC Bank, Bajaj Auto and Shree Cement were lower by 1 to 1.25%.

Larsen & Toubro, Tata Consultancy Services, Tata Motors, ITC and Bharti Airtel were also weak.

HCL Technologies shares gained nearly 3% after the compay expanded its partnership with Google to deliver accelerated business intelligence platform.

Shares of PSU oil marketing company BPCL were up nearly 1%. According to reports, the company may acquire its partner Oman Oil Company Ltd's stake in Bharat Oman Refineries Ltd, a joint venture of the companies. Earlier this year, BPCL increased its stake in the refinery to 63% from 50%, after converting warrants into shares.

Zee Entertainment Enterprises was up nearly 2%. Dr Reddy's Laboratories, Asian Paints, Grasim Industries, Tech Mahindra, ONGC and Hero Motocorp were gaining 1 to 1.8%.

Happiest Minds Technologies shares made a sparkling debut. The stock rose to Rs 395 on BSE, gaining nearly Rs 230 over the issue price. The company's Rs 702-crore IPO, which came with a price band of Rs 165-166, received overwhelming response from investors and was subscribed 151 times.

Procter & Gamble reported a net profit of Rs 48.9 crore for the June quarter, an increase of 10.8% over its profit in the year-ago quarter. The stock is up marginally over its previous closing price.

As widely expected the U.S. Federal Reserve left its rates unchanged and said the low interest regime will continue through 2023.

The Fed's latest estimates point to a 3.7% contraction in GDP in 2020, reflecting an improvement from the 6.5% plunge forecast in June. However, the Fed downwardly revised its estimates for GDP growth in 2021 and 2022 to 4% and 3%, respectively. GDP growth in 2023 was forecast at 2.5%.

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