Snapping its two-day fall, the BSE Sensex today recovered by 33 points to close at 27,564.66 points on late buying in banking, FMCG and oil stocks after recent falls and hopes of rate cut by the Reserve Bank.

Covering-up of short positions in select stocks in view of May month expiry in the derivatives segment tomorrow and hopes of rate cut by RBI helped the Sensex to close in positive zone, brokers said.

The wider 50-issue Nifty of NSE, however, closed down by 4.75 points, or 0.06 per cent at 8,334.60 points.

Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Market is floating on hope of rate cut. Currently it is volatile and trading in range. The trend will move as per the consensus and outcome, which develops by the event date. Looking at global prices, both soft and hard commodities are much lower. Hence in the medium-trend CPI should lower. But the risk is to currency which is depreciating, though outperforming to peers. Based on RBI target of 6% CPI, it does provides a room to cut rate, the question is by when and how much. This will depend on global factors which are supportive now. Also RBI will be concerned on currency due to US rate hike. But looking at peers like China the rate trend is downward.

Cautioned prevailed following disappointing earnings by Tata Motors and Tech Mahindra and overnight sell-off in the US markets on fears about Greek fiscal woes and speculation that the Federal will raise interest rates this year, brokers said.

Market participants are expecting RBI to cut key rates in its June 2 policy meeting as inflation worries has eased, they added.

After opening lower at 27,447.40 points, the BSE Sensex continued to slide and touched the day’s low of 27,363.72 points due to sustained selling.

Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
Markets opened today with a negative gap tracking the global cues and disappointing quarterly numbers from the domestic companies, but reclaimed on selective buying ahead of futures and options expiry of May series, positive cues from European markets and falling dollar after its biggest rally in two years.
The European markets rebounded from a three day lose. Investors were now focusing on the Greece developments as the officials plan to meet the creditors in Brussels today as the country is running short to make payment to the IMF in early June.
Nifty closed at 8334 down around 4 points.  But the market breadth stood negative as there were seen 1189 stocks advancing against 1441 stocks declining. The Nifty volatility index, India VIX stood at 17.2825 up around 1.25%.
Banking and Consumer Durables were the gainers in the sectorial front, closed up around 1.24% and 1.17% respectively whereas the losers were the Auto and IT which ended down around 2.10% and 2.04% respectively.
In the stocks’ front, the major gainers were BHEL and Idea which closed up around 3.81% and 2.98% respectively whereas the selling was seen in Tech Mahindra and Tata motors closed down around 14.72% and 4.99% respectively.
The FIIs were buyers in the cash market segment on 26 May 2015, Tuesday, bought shares worth Rs 114.81 crore. The DIIs on the other hand were also buyers on 26 May, bought shares worth Rs 123.85 crore in the capital markets segment.
The US index futures were trading with a positive note.
GPPL, BGR Energy, Wock Pharma, UBL, Tata global, Sunil Hitech, Kohinoor, Hindoil Exp, GToffshore, Siticable, PFC, Power grid, RECLTD, India glycol, Escorts, Omaxe, NMDC, Hindalco, IGL, STC India, Thomas cook, Gujarat fluro, Rajesh expo and Prajind may announce their earnings tomorrow.

However, the Sensex bounced back following emergence of value buying particularly in banking stocks in the last half-an-hour of trading on hopes of rate cut by RBI. The barometer settled higher by 33.25 points, or 0.12 per cent, at 27,564.66.

The gauge had lost 426.09 points in the previous two sessions on lower-than-expected earnings from bluechip firms.

Foreign portfolio investors bought shares worth Rs 114.81 crore yesterday, as per provisional the data.

Market View by Anand James, Co Head Technical Research Desk, Geojit BNP Paribas
With earnings of only less than a quarter of Nifty stocks yet to be announced, the earnings tremors may be over. However, with just a day before near month derivative contracts expire, rollovers of futures are seen to be quite low, suggesting that traders are less likely to continue with the same bets in the June contracts too, until more clarity on direction emerges. This can be read in the backdrop of several event risks lined up for next month, like interest rate announcements by RBI and FOMC  on June 2nd and 17th respectively, as well as the progress of southwest monsoons in India and the Greece debt payment deadline. Nifty’s swing higher has kindled hopes of resumption of uptrend, being below 8360, bearish bias could still dominate. Meanwhile 8290-8260 region would be keenly watched for signs of fresh bargain hunting.

BHEL topped gainers’ list by rising 3.34 per cent largely on covering-up of short positions and value-buying, followed by ONGC which rose by 2.70 per cent.

Among banking stocks, Axis Bank rose by 2.26 per cent, HDFC Bank by 1.32 per cent and ICICI Bank by 1.1 per cent. State-run SBI gained 1.23 per cent.

Snapping its two-day fall after lacklustre results, ITC was up by 1.10 per cent.

Market View by Gaurav Jain, Director, Hem Securities
With the continued pressure of derivative contracts expiry, markets are in the consolidation mode. It has been a dismal quarter of earnings so far for the India Inc; adding to the spoiled sentiment. Tough banks did well through the day on expectation of a rate cut in the coming RBI policy.

Oil major ONGC gained 2.70 per cent while Coal India was up by 2.11 per cent. Coal India, Bharti Airtel, NTPC, Tata Power and L&T also posted gains.Among laggards, Tata Motors suffered the most by plunging 5.12 points after company reported 56.2 per cent decline in net profit for the January-March quarter.

M&M, Infosys, Sun Pharma, GAIL, Vedanta Ltd, Tata Steel, Wipro, Hero MotoCorp and Bajaj Auto also fell up to 3.05 per cent.

Shares of Tech Mahindra, country’s fifth-largest software exporter, crashed 14.24 per cent to Rs 549.35 after the company posted a 23.15 per cent dip in net profit for the March quarter.

In the 30-Sensex constituents, 17 ended higher, while 13 remained in the negative terrain.

Sectorwise, the BSE PSU index gained the most by recovering 1.51 per cent, followed by Banking 1.19 per cent, Oil & Gas 0.97 per cent, Consumer Durables 0.95 per cent and Capital Goods 0.71 per cent.

However, Auto index fell 2.11 per cent, while IT index declined 1.88 per cent.

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