Markets closed in red but managed to show smart recovery in last half an hour of trade. Telecom, technology, auto, capital goods and metal stocks dragged frontline indices lower. Weak global cues also played a key role in todays trade. However, power, banking and select realty stocks managed to bounce back in late trade. Sugar pack remained star performer of the day.

Frontline indices had opened weak and traded sharply lower throughout the day due to renewed credit concerns in US financial space, which is not over yet. Global cues remained subdued. But buying support at lower levels has helped our markets to recover in late trade. The Sensex has recovered over 175 points and Nifty 50 points from days low of 14,368.72 and 4316.55, respectively.

Sensex closed at 14,543.73, down by 101.93 points or 0.70% and Nifty ended with a loss of 24.8 points or 0.56% at 4368.25. BSE Midcap Index fell 0.27% at 5,766.32 and Small Cap index was down 0.34% at 7,012.74.

Amongst frontliners, ACC dropped by -5.78%, Idea Cellular -5.05%, Maruti Suzuki -3.90%, HDFC -3.24%, Satyam -3.21% and Reliance Comm -3.06%. However, Reliance Infra gained 2.26%, Hindalco 2.08%, ICICI Bank 2.01%, NALCO 2.06% and Reliance Petro 1.92%.

Sugar stocks have gained after yesterdays hearing in Allahabad Court, which has annulled the Lucknow Bench order of upholding Rs 125 per quintal SAP for sugar manufacturing. Bajaj Hindustan, Balrampur Chini, KCP Sugar, Rajshree Sugars, Sakthi Sugars, Triveni Engg and Uttam Sugar have gained 3-8%.

However, telecom stocks witnessed selling pressure, which include Idea Cellular, Reliance Comm, Bharti Airtel and TataTeleservice. These stocks fell 1.6-5%.

IT Index declined by 0.87% at 3,892.26 due to selling in Aptech, Satyam, HCL Tech, TCS, Infosys, I-Flex Solution and NIIT Tech.

Auto stocks like Maruti Suzuki, MRF, Ashok Leyland, M&M and Tata Motors ended negative. Index lost 0.86% at 3,849.33.

Metal Index also closed in red, which fell 0.74% at 12,272.80. Sesa Goa, Sterlite Ind, Ispat Industries, Tata Steel and Hindustan Zinc fell.

FMCG index declined 0.70% at 2,162.85 as selling was seen in Dabur India, ITC, United Spirits and Tata Tea.

Realty stocks like Phoenix Mills, HDIL, Akruti City, Puravankara Pro and Unitech have slipped. Index ended with a loss of 0.27% at 5,117.50.

In the Oil & Gas space, ONGC, Cairn India, Reliance Ind and GAIL closed in red while Essar Oil, Reliance Petro, HPCL, BPCL, IOC and Aban Offshore gained. Crude was hovering around USD 112 a barrel on the NYMEX, at the time of writing market report.

However, Power Index rose 0.26% at 2,615.11 as buying was seen in Reliance Infra, GVK Power, Suzlon Energy, GMR Infra, Torrent Power and NTPC.

BSE Bankex, Healthcare, Capital Goods and Oil & Gas indices closed flat.

Most active counters on the bourses were Reliance Ind, Reliance Infra, ICICI Bank, L&T and Reliance Communication.

Turnover traded in markets was very low, which stood at Rs 56,307.32 crore. This includes Rs 8,920.66 crore from NSE Cash segment, Rs 43,426.67 crore from NSE F&O and balance Rs 3,959.99 crore from BSE Cash segment.

Asian markets ended in negative terrain barring Shanghai. Hang Seng, Jakarta, Nikkei, Straits Times and Kospi declined 1.7%-2.3%. However, Shanghai Composite rose 1.06%.