Sensex recovers 30 points on lower inflation; Infosys letdown

Mumbai: Lower inflation data coupled with revived global sentiment helped benchmark Sensex bounce back after yesterday's steep fall and end 30 points higher at 27,673.60 in a choppy trade on Friday, but gains were restricted by a mixed start of the earnings season.

Infosys stock fell 2.34 percent even as the company reported a 6.1 percent rise in its second quarter net profit but cut its annual revenue growth forecast for the second time in three months on an "uncertain business outlook".

While, shares of country's largest software exporter TCS today surged 1.61 percent to Rs 2,365.90 after the company yesterday reported an 8.4 percent rise in consolidated net profit at Rs 6,586 crore for the second quarter ended September 30.

Investor sentiment received a boost after retail inflation fell to a 13-month low of 4.31 percent and wholesale inflation at 3.57 percent, creating headroom for further rate cuts by Reserve Bank in coming months.

Besides positive domestic macro-economic data, a firming trend in global markets with upbeat Chinese inflation data easing investor concerns over global growth and the health of the world's second-biggest economy influenced trading sentiment here.

"Market was not cheered even though the CPI inflation cooled to 4.31 percent as the mixed start to the quarter results did not comfort investors. Global market rebounded with the positive inflation data from China, while the investors are eyeing today?s commentary from Fed chair for any cues in rate hike trajectory," Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services, said.

The 30-share barometer opened positive at 27,712.22 and advanced to 27,763.54 but profit-booking at higher levels, shed most grounds to settle the session 30.49 points, or 0.11 percent, higher at 27,673.60. Intra-day, it touched a low of 27,548.18.

The gauge had plunged 439.23 points in yesterday's trade after a slew of global factors such as weak Chinese export data and Fed rate hike talks unnerved investors.

On similar lines, the NSE Nifty rose 10.05 points, or 0.12 percent, at 8,583.40 after shuttling between 8,604.45 and 8,549.80.

However, for the week, the Sensex dropped 387.54 points, or 1.38 percent, while NSE Nifty lost 114.20 points, or 1.31 percent.

The broader markets today too saw some buying activity with the BSE small-cap advancing 0.83 percent and mid-cap ending higher by 0.81 percent.

As many as 16 in the 30-share Sensex pack advanced.