Mumbai: The S&P BSE Sensex on Friday bounced back from 2-month lows to end 55 points up on late buying in IT and auto scrips tracking a recovery in rupee, amid Finance Minister P Chidambaram' assurance that there was no need for panic and the RBI will take action to stem the currency slide.
    
The benchmark index resumed lower at 18,695.80 and dropped further to a low of 18,615.14 on sustained selling pressure. However, Sensex recovered afterwards to 18,820.81 before finishing at 18,774.24, showing a net gain of 54.95 points or 0.29 percent.
    
The NSE 50-share Nifty also moved up by 11.75 points or 0.21 percent to finish at 5,667.65. Also, SX40 index, the flagship index of MCX-SX, closed 19.53 points up, or 0.18 percent, at 11,138.38.
    
Shares of Auto, Power and Refinery also moved up on good buying enquiries at current levels while Metal, Realty and Consumer Durables continued to decline on selling pressure.
    
Among the 30-share Sensex pack on Friday, 16 stocks including Infosys, TCS, ONGC, Bharti Airtel, HDFC, Hero MotoCorp, Maruti Suzuki, Mahindra and Mahindra and Coal India ended higher. 13 scrips including RIL, SBI, BHEL, Hindalco and Jindal Steel closed lower. ITC managed to close flat on some support.
    
"We are watching the situation, RBI will take whatever action it has to take. We have good economic advisors. We will (do) whatever has to be done... My request is you should not react in panic, it’s happening around the world," Chidambaram said at a press conference in New Delhi.
    
The rupee had touched all-time low of 59.98 in intra-day trade on Thursday but on Friday recovered to 59.14 at 1600 hours on dollar sales by banks. Higher European markets where indices in France, Germany and UK firmed up to 1 percent helped boost domestic stocks.
    
Most Asian markets ended lower after the US Federal Reserve's plan to wind down bond purchases led to heavy losses on Wall Street, while Japanese stocks ended higher on the back of a weakened yen. On Thursday, Sensex had crashed over 526 points.

Key benchmark indices in China, Hong Kong, Singapore, South Korea and Taiwan dropped by 0.52 percent to 1.49 percent while Japan's Nikkei rose by 1.66 percent. Turning back to the domestic market, major gainers from the Sensex pack were ONGC (2.56 pc), Infosys (2.21 pc), NTPC (2.11 pc), Dr Reddy's Lab (2.05 pc), Maruti Suzuki (1.91 pc), Hero Motocorp (1.56 pc), Bharti Airtel (1.37 pc), TCS (1.31 pc) and Coal India (1.10 pc).
    
However, Jindal Steel dropped by 8.06 percent, followed by Hindalco Ind (4.20 pc), Sun Pharma (1.85 pc), Sterlite Ind (0.98 pc) and RIL (0.66 pc).
    
"Among the spotlight was the power stocks which saw buying interest after the Cabinet Committee on Economic Affairs gave approval to the power companies to pass on the cost of imported coal to customers. NTPC, TataPower and Powergrid were all in green," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
    
In the coming week, government would release its balance of payments data for the first quarter of calendar year. "Core sector data for May will also be closely tracked," said Amar Ambani, Head of Research, India Infoline.
    
Other experts said monthly derivatives expiry will be closely watched. "Going forward, apart from derivative expiry there are no other major events next week. So, now the focus is expected to shift back to USD-INR. The street will watch out for liquidity flow," said Nagji K Rita, CMD, Inventure Growth & Securities.
    
Among the sectoral indices on Friday, S&P BSE-IT rose by 1.43 percent and S&P BSE-Teck by 1.11 percent. However, S&P BSE-Metal dropped by 1.45 percent pct and S&P BSE-Realty by 1.02 percent.
    
Market breadth remained negative as 1,342 shares ended lower while 982 finished higher.  The total market turnover rose to Rs 2,268.82 crore from Rs 1,770.87 crore on Thursday. Meanwhile, Foreign Institutional Investors (FIIs) sold shares worth a net Rs 2,094.06 crore on Thursday, as per provisional data from the stock exchanges.

(Agencies)

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