Bank, auto reverses trim gains

The benchmark Bombay Stock Exchange (BSE) Sensex today closed up 14.23 points (0.11 per cent) at 12,543 points, as it lost strong gains made during the day, in the last session, following selling pressure in banking and auto scrips.

The Asian markets, which melted yesterday following concerns over US economy, today bounced back with average gain of 1-1.5 per cent.

The bellwether Sensex opened at 12,655.94 points (up 126.32 points), touched a high of 12,789.81 points (up 260 points) before the last session and ended lower at 12,543.75 points. Broad-based S&P CNX Nifty also had a volatile day, as it ended gaining 0.07 per cent to 3,643.6 points.

"The market is awaiting some news such as income tax collection figures, otherwise it is tough for the market to pick up in near term and volatile activity would continue," K D Mehru, vice-president (equities), Khandwala Securities, said.

Information technology and FMCG were the top gaining sectors, while banking and auto stocks suffered the most during the day.

"Under pressure from rising interest rates and inflation, banking stocks might not perform in recent time. The stock performance would come, but not immediately," banking scrip analyst Vishal Goyal of Edelweiss Securities said.

Around 1505 shares advanced, 971 shares declined and 82 shares remained unchanged.

Dr Reddy's was the top gainer as it rose 4.43 per cent to Rs 674.90, followed by ITC to Rs 147.35 (up 3.15 per cent) and Infosys to Rs 2,078.20 (up 2.93 per cent). Hindalco gained 2.11 per cent to Rs 130.65 and TCS 1.87 per cent to Rs 1,236.20.

The SBI scrip topped the losers list as it shed 2.70 per cent to Rs 521.90. HDFC followed with a loss of 2.67 per cent to Rs 1,513.55. Tata Motors lost 2.59 per cent to Rs 725.85 and ACC 2.13 per cent to Rs 731.65. Reliance Communications also figured in the losers list, as it came down by 1.98 per cent to Rs 390.65.

Atlanta, the high-decible infrastructure scrip, whose promoters have been banned by the Securities and Exchange Board of India (Sebi) from trading, once again hit the lower circuit at Rs 449.65. Atlanta scrip has lost big numbers after it marked it 52-week high of Rs 1,450 on January 18.

ITC rose Rs 4.5, or 3.2 per cent, to Rs 147.35. India's biggest cigarette maker gained on optimism the levy of value-added tax on tobacco by the country's states may be delayed. India referred a proposal to phase out a federal sales tax to a panel of lawmakers.

The Taxation Laws (Amendment) Bill was referred to a committee of lawmakers, P D T Achary, secretary general of the lower house of parliament, said today.

"There's optimism the levy of VAT will get delayed,'' said Abhijeet Kundu, an analyst at Prabhudas Lilladher Securities Ltd in Mumbai.

Larsen & Toubro added Rs 8.3, or 0.6 per cent, to Rs 1,494.1. India's biggest engineering company said a group led by it won a Rs 1,400 crore order for a steel plant's expansion in the southern part of the country. The order is for the Visakhapatnam Steel Plant, Larsen said in a statement to the Bombay Stock Exchange.

Praj Industries added Rs 4.3, or 1.2 per cent, to Rs 372. The maker of equipment for sugar mills and distilleries got a contract valued at Rs 65 crore from a unit of CropEnergies AG's unit. The order for a wheat- and beet-based bio-ethanol plant is from Biowanze SA, Praj, said in an e-mailed statement today.