Markets ended in positive terrain after yesterdays sharp sell off. Buying was seen in metal, FMCG, banking, oil, auto and power stocks. Positive cues from European markets helped markets to remain positive in second half of session. Nifty Fifty turned back above 4300 mark.

Frontline indices had opened weak and traded with some choppiness but after 1 pm, both indices, due to strong European markets, started trading higher, which was expected.

The Sensex touched an intraday high of 14,428.52 and low of 14,136.86 before closing at 14,401.49, a gain of 157.76 points or 1.11% over previous close. Nifty ended at 4327.45, up 43.6 points or 1.02%. It has hit a high/low of 4337 and 4248, respectively.

BSE Midcap Index ended with a gain of 19.39 points or 0.34% at 5,726.85 while Small Cap Index fell 11.17 points or 0.16% at 6,925.85.

Inflation was non event of the day as it was in line with CNBC-TV18 estimates. It stood at 12.63% for the week ended August 9 as against 12:44% in earlier week. Inflation data for 14 June, 08 has been raised to 11.80% vs 11.42%.

Dealers say trading bounce back was on expected lines after yesterday's fall. Flows were mixed at FII desk and some buying interest was seen in large cap stocks at lower levels. But mood is still very cautious; India will mirror global markets in short term. They expect Nifty support at 4250 on downside.

Amongst frontliners, Sterlite Ind gained 4.34%, Hindalco 4.26%, SAIL 4.12%, HUL 3.73%, HDFC 3.22% and BHEL 2.76%. However, Satyam lost 3.18%, BPCL -2.42%, Grasim -1.85%, NTPC -1.70% and Dr Reddys Labs -1.30%.

On the weekly basis, Sensex and Nifty slipped 2% and 2.3%, respectively. BSE Bankex has lost 4.2% followed by Realty Index with loss of 4.4%. SBI and ICICI Bank fell 7.7% and 4.2%. Unitech lost 6% and DLF fell 3%.

BSE Metal Index outperformed other indices, jumped by 1.62% or 197.02 points at 12,363.93. SAIL, Sterlite Ind, Hindalco, Ispat Industries, Hind Zinc, NALCO, Tata Steel and Jindal Steel ended in green.

Banking stocks like Axis Bank, Kotak Mahindra, HDFC Bank, IDBI Bank, Bank of India and IOB have gained, due to which Index rose by 77.85 points or 1.18% at 6,655.76.

FMCG Index surged 1.09% to 2,163.54 due to buying in Rei Agro, HUL, United Spirits, Dabur India, Nestle and United Breweries.

Oil & Gas Index gained 103.54 points or 1.05% at 9,941.66 as buying was seen in Reliance Petro, Cairn India, Reliance Ind, RNRL, Essar Oil and ONGC. Crude was hovering around USD 120-121 a barrel on the NYMEX.

Auto stocks like Exide Industries, Maruti Suzuki, Tata Motors, M&M and Escorts ended higher. Index was up by 1.04% at 3,839.52.

Power Index rose 0.96% at 2,597.96 on the back of buying in Tata Power, Reliance Infra, GVK Power, GMR Infra, Reliance Power and Suzlon Energy.

Select pharma stocks also bounced back, which include Piramal Health, Glenmark, Ranbaxy Labs, Lupin, Apollo Hospital, GlaxoSmithKline and Fortis Health. Index gained 0.62% at 4,297.64.

IT Index jumped just 0.39% to close at 3,837.19. Rolta, Infosys, Aptech, Moser Baer and I-Flex Solution were up.

Capital Goods and Realty indices ended flat at 11,925.36 and 4,944.73, respectively.

Tata Steel, L&T, ICICI Bank, Reliance Industries and Reliance Infra were most active counters on the bourses.

Overall market breadth was weak through the day; about 1284 shares have advanced while 1526 shares declined. Nearly 356 shares remained unchanged.

Turnover traded in markets stood at Rs 57,751.27 crore. This includes Rs 9,366.61 crore from NSE Cash segment, Rs 44,332.45 crore from NSE F&O and balance Rs 4,052.21 crore from BSE Cash segment.

Major contribution was seen from Reliance Ind, SAIL, BHEL, HDFC, Infosys, Bharti Airtel, HUL, ONGC, Reliance Comm and HDFC Bank.

Asian markets ended lower. Shanghai fell 1.09%, Nikkei -0.68%, Kospi -1.04% and Taiwan Weighted -0.10%. However, Jakarta Composite gained 1.54% and Straits Times 0.36%.