Market rebounds from day's lows; BHEL up 3%

Markets rebounded from their day's lows in late noon trades following a recovery in select financials and capital goods shares while FMCG major ITC continues to lead gains.

At 2:15PM, the 30-share Sensex was up 70 points at 28,407 and the 50-share Nifty was up 19 points at 8,482.

The Indian rupee was trading unchanged at Rs 61.86 to the US dollar as gains in other Asian currencies compared to the US dollar has dampened sentiment.

Asian shares were trading mixed after US third quarter GDP data signalled that the U.S. economy grew at a relatively stable pace allayed investor fears over slowing global growth. Shares in Japan witnessed profit taking and the Nikkei ended down 0.1%. Shanghai Composite and Hang Seng were up 1.1-1.4% each while Straits Times was trading flat with negative bias.

The BSE Realty index was the top sectoral gainer up 2.7% followed by FMCG and Power indices among others. The BSE IT index was the top loser.

FMCG major and Cigarette maker ITC has gained 1.5%, having recovered from yesterday's slump as analysts do not see the new restrictions on the sale of cigarettes materially affecting the company's revenues.

In the financial segment, HDFC was up 0.6%, SBI gained 1% and HDFC Bank was up 0.5%.

Capital goods shares also firmed up with BHEL rising nearly 3% and L&T rising 0.2%.

In the auto sector, M&M, Hero MotoCorp and Tata Motors was up 0.4-1.4% each.

However, Bajaj Auto is the top loser down nearly 2% after Nigeria's central bank devalued the naira by 8 percent and raised interest rates sharply on Tuesday. Nearly 12% of Bajaj Auto's revenues come from Nigeria - analysts. Maurti and Tata Motors are down 0.5% each.

The other stock in red on account of this news is Bharti Airtel down 1.5% as Nigeria is Bharti Airtel's biggest market in Africa.

In the IT pack, Wipro, Infosys and TCS were trading with marginal losses.

Among other shares, Reliance Capital has moved higher by 5% to Rs 504, bouncing back from its intra-day low on BSE, after the company said Nippon Life Insurance has agreed to increase its stake in Reliance Capital Asset Management (RCAM) from 26% to 49%.

Shares of Puravankara Projects were up 3% at Rs 94 after the company said it has entered into a joint venture deal with Pune-based Oxford Group and Mumbai-based EKTA World to develop nearly 30 acres of prime residential land in Mundhwa, Pune.

In the broader market, the BSE Mid-cap index was up 0.9% and Small-cap index was up 1.2%.

Market breadth was positive with 1,687 gainers and 1,092 losers on the BSE.