Markets recovered smartly from the day’s low on the back of a easing food inflation data and positive cues from European markets. The Sensex, after touching a low of 15,479, recovered to a high of 15,901. The index finally ended up 159 points at 15,858. Nifty was up 50 points at 4,756.

Food inflation fell sharply to single digit at 9.01% for the week ended November 12 even as prices of most agricultural items, barring potatoes, onions and wheat, continued to rise, on an annual basis. Food inflation, as measured by the Wholesale Price Index (WPI), was 10.63% in the previous week.

Inflation is expected to moderate if the current easing trend in weekly food and fuel prices continues, Finance Minister Pranab Mukherjee said. “If this trend continues for the next two weeks for the month of November, I hope there will be a moderation in inflation,” Mukherjee said.

European stock markets continued to remain positive after a firm opening on the back of value buying at lower levels after a survey showed a surprisingly improvement in German business during November, boosted sentiment. Key European share indices such as FTSE-100, CAC-40 and DAX were all up between 0.5%-1% each.

Asian markets ended on a flat note although Japanese markets slumped to two year lows. Asian shares have been under broad selling pressure this week, as investors reacted to heightened concerns about Europe’s debt crisis and its potential impact on global economic growth. Hang Seng added 0.4% to 17,935. However, Nikkei slipped 1.8% to 8,165.

BSE metal index touched a low of 9,811 but recoeverd to end flat at 10,040. as China – a key consumer of aluminium and copper – reported weak economic data. Hindalco and Sterlite from the metal pack dropped around 1% each. Jindal Steel ended flat at Rs 500. For more visit: Business Standard

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