Bank, IT stocks sally forth

STOCKS REPORT

Bank and IT sector stocks led the rally as the broader market ended positive in volatile trading on Tuesday. Down to a low of 6737.09, the benchmark BSE Sensex rallied to the day's high of 6795.03, before closing at 6781.25, up 23.06 points than its previous close.

The Sensex is in a trading zone and may witness volatile trading for the next few days, said a BSE broker, adding, "In absence of fresh impetus, the market may correct from higher levels."

Index heavyweights HDFC Bank and HDFC were the biggest gainers attracting renewed buying interest while investors sold FMCG, metals and oil and gas stocks. Tata Steel and HLL were the biggest losers pulling the Sensex down at close. Tata Steel ended 2.99 per cent lower to close at Rs 338.8, while HLL ended 2.74 per cent lower at Rs 143.50.

An equity dealer with a domestic broking firm said, "Concerns of high oil prices and below average monsoon forecast may force investors to stay away from the market for a short while. The first signs of profit booking in FMCG stocks was witnessed in Tuesday's trading."

Among Reliance group companies, Reliance Industries was down 0.72 per cent to close at to Rs 547.80. Reliance Energy however ended marginally higher at Rs 549.30, up 0.48 per cent.

The breadth of the market turned negative with 713 stocks advancing as against 1,138 stocks declining. Among the 30 share BSE basket, 11 shares ended negative on Tuesday.

The volumes were moderate and accounted for Rs 2,047.06 crore on BSE and Rs 3,980.84 crore on the National Stock Exchange (NSE).

The BSE Oil and Gas index and BSE Tech index were among the losers in Tuesday's trading. ONGC was slightly up by 0.20 per cent to Rs 934.40, the BPCL ended 1 per cent lower at Rs 375 and the IBP ended 0.28 per cent lower at Rs 515.65. The BSE Oil and Gas index was down 0.40 per cent at 3127.40.

Technology stocks had a mixed day on the bourses with the BSE IT index gaining 0.6 per cent at 2735.28. Wipro was up 2.38 per cent to Rs 731.90, Infosys was up 0.75 per cent to Rs 2,235.35, Satyam was up 0.11 per cent to Rs 459.80, while TCS ended 0.23 per cent lower at Rs 1,277.25.

Foreign institutional investors were net buyers of Indian shares worth Rs 87.7 crore on Monday while domestic mutual funds were net sellers to the tune of Rs 2 crore.

Among the gainers in Tuesday's trading were the new entrant HDFC Bank. The stock was up 6.47 per cent to close at Rs 589.00, HDFC was up 3.38 per cent to Rs 806.65, ICICI Bank was up 2.9 per cent to Rs 405.70, Guj Ambuja was up 1.86 per cent to Rs 454.80, Hindalco was up 1.18 per cent to Rs 1,093.20, Tata Power was up 0.68 per cent to Rs 383.45 and Larsen & Toubro ended 0.65 per cent higher to close at Rs 1,106.55.

Metal stocks continue to drag lower following reduction in prices from June 1.

The BSE Metal index was the second largest loser down 1.08 per cent to close at 5317.07.

Among loser in frontline stocks, ITC was down 1.98 per cent to Rs 1,549.60, Ranbaxy was down 1.9 per cent to Rs 1,088.50, Grasim Industries was down 0.69 per cent to Rs 1,090.05 and Tata Motors was down 0.25 per cent to Rs 435.35.