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Sensex Snaps 4-day Losing Streak; Lenders Recover

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The BSE Sensex rose on 30 august' 2012 for the first session in five as lenders such as ICICI Bank rose after steep recent falls, although caution still prevailed ahead of the GDP data announcement.

Investors will scrutinise April-June gross domestic product data out on Friday, given concerns that India's economy is slowing sharply even as inflationary pressures remain, making the prospect of monetary action uncertain.
 
A Reuters poll of 38 economists forecast growth of 5.3 per cent for the April-June quarter, unchanged from January-March quarter and marking its slowest growth since 2009.
 
Still, technical analysts were at least comforted the NSE index's recent support held firm at the 50-day moving average.
 
"A weak GDP numbers is already priced in, and it should force RBI and government to act," said A.K. Prabhakar, senior vice president of equity research at Anand Rathi Financial Services, referring to Reserve Bank of India.
 
"If Nifty holds to 5,250-5,220, which is closer to its 50-day moving average on sustainable basis, then 5,500 is possible in the coming month."
 
The BSE Sensex rose 0.29 per cent to 17,541.64 points, after declining a total of 2 per cent over the previous four sessions.
 
The 50-share Nifty rose 0.52 per cent to 5,315.05 points, closing above the 50-day moving average at 5,255.74 points, which has largely provide support since mid-June.
 
Trading was volatile as August derivative contracts expired at the end of the session.
 
Among gainers, lenders recovered from recent steep falls as HDFC Bank rose 0.6 per cent, while ICICI Bank gained 1 per cent after slumping 5.9 per cent over the previous four sessions.
 
Other recent sharp decliners also gained, with aluminum producer Hindalco Industries rising 2.2 per cent after dropping 8.2 per cent over the previous four sessions.
 
Defensive stocks gained as well ahead of the GDP data. Hindustan Unilever rose 1.2 per cent, while cigarette maker ITC added 0.5 per cent.
 
However, Hero MotoCorp fell 1.4 per cent after Credit Suisse downgraded the stock to "neutral" from "overweight", citing caution about the company's near-term outlook in the domestic two-wheeler market.
 
Tech Mahindra slumped 5 per cent after British telecoms firm BT unloaded about a 5 per cent stake in the Indian IT service provider.
 
Tata Steel fell 2.3 per cent while Jindal Steel and Power fell 1.9 per cent, extending recent sharp declines on continued worries about the fallout from the controversial coal concessions that has consumed parliament.

(Reuters)