Markets snap two-day loss, RIL leads

Benchmark shares indices ended marginally higher, snapping a 2-day decline, amid a volatile trading session on Friday, led by gains in index heavyweight Reliance Industries and fast moving consumer goods shares. Reliance Industries accounted for a 39-point gain on the Sensex.

The 30-share Sensex ended at 15,868, up 11 points and the 50-share Nifty ended at 4,754, up 4 points.

The Indian stock markets had opened marginally lower tracking weak global cues and during the day, the BSE benchmark index had touched a low of 15,665.

European markets are higher today with shares in France leading the region.

At 1600 hours, the CAC 40 was up 0.65% while Germany's DAX was up 0.62% and London's FTSE 100 was up 0.36%.

In Asia, Japan's Nikkei share average slipped more than 1%, backing further away from its 25-day moving average as investors fretted over the euro zone debt crisis and weakness in the single currency.

The Nikkei fell 1.2 percent to 8,390.35, declining below its 25-day moving average at 8,500, and marking a 0.8 percent loss for the week.

Hang Seng index ended lower by 1.2% at 18,593 while the Shanghai Composite index ended at 2,163, higher by nearly 1%.

According to Salil Sharma, technical analyst, partner kapursharma.com, "The Nifty has been moving in the range of 4700-4800 for the past few trading sessions.

"The 20 DMA of the Nifty is at 4725 and the Nifty movement has confirmed a breakout above this average."

On the sectoral front, BSE Oil & Gas index ended higher by 1%, at 7,685. BPCL, Essar Oil, Reliance Industries and Indian Oil Corporation, up 1-3% each, were the prominent gainers from the space.

BSE FMCG and Bankex indices were also up nearly 1% each. HDFC Bank, Bank of India, Kotak Mahindra Bank and Bank of Baroda, up 2% each, were the notable

gainers from among the financials.

BSE Capital Goods reeled under selling pressure on concerns of a slowdown in order inflows. The index shed nearly 2%.

Crompton Greaves, Usha Martin, BHEL and Alstom Projects India, down 2-4% each, were the notable gainers from the Capital Goods' space.

Reliance Industries gained 3% at Rs 712 and was the most prominent gainer on the Sensex. Other prominent gainers from the pack were HDFC Bank, Hindalco Industries, Maruti Suzuki and ITC, up 1-2% each.

Hero MotoCorp, JP Associates, Bharti Airtel, Jindal Steel and DLF, down 3-5% each, were the notable losers from the pack.

Among the individual shares, shares of telecom companies were under pressure on the bourses ahead of the Telecom Disputes Settlement and Appellate Tribunal hearing on the third-generation (3G) roaming case due Monday.

Kingfisher Airlines plunged 5% to Rs 9.45 over reports that the Directorate General of Civil Aviation has given the company three days time (till Monday) to come back with a detailed plan of financial recovery and safety.

Shares of companies engaged in retail business rallied on the bourses on reports that the government will issue a formal order to allow 100% foreign direct investment in single-brand retail. Pantaloon Retail, Shoppers Stop, Vishal Retail and Koutons Retail are trading higher by 5-7% on the Bombay Stock Exchange.

The trading volumes on these counters more than doubled, as compared to an average trading volume in past ten trading days.

"The government is likely to soon issue a formal order for the full opening up of the country's single-brand retail segment to foreign direct investment," a report suggests quoting PK Chaudhary, secretary at the Department of Industrial Policy and Promotion.

The overall market breadth was marginally positive as 1,437 stocks advanced against  1,296 declining ones, on the BSE.