Blue chip buying helps

STOCKS REPORT

Market players said that the Sensex is in a consolidation mode and lacks direction. However, they expect fresh money to chase quality stocks since the undercurrent is bullish.

The Benchmark BSE Sensex, after hitting an intra-day low of 6647.11, managed to gain 35.81 points or 0.54 per cent to close at 6686.89. The Nifty ended 8.85 points to close at 2093.25.

ONGC counter witnessed a huge block deal in the morning resulting in huge volumes on the bourses. Shares worth Rs 3,130 crore were traded on the BSE on Wednesday, compared with the volume of Rs 2,323.27 crore traded on Tuesday.

In the BSE Sensex basket, 13 out of the 30 scrips closed lower. ONGC stock ended 0.94 per cent lower to Rs 856.30 after a huge block deal of 86 lakh shares was reported on the counter at Rs 865 per share.

An equity dealer with a domestic broking firm said, "Market currently lacks direction. The foreign flows in the coming day's will decide the future trend. While there were no major negatives in the Budget, the benefit of reduction in corporate tax rate has almost been fully negated by a rather cumbersome tax on fringe benefits."

Among the indices, the BSE Bankex was the biggest gainer at 3956.69, up 2.66 per cent from its previous close. Selected bank stocks rallied after a sharp correction yesterday. Among the gainers were, ICICI Bank was up 4.62 per cent to Rs 389.45, SBIwas up 1.56 per cent to Rs 706.15.

Bharat Forge was up 7.05 per cent to Rs 1,417.80 after the company announced a stock-split. The company's board has also approved a hike in the FII investment limit to 40 per cent from the current 24 per cent.

Glenmark Pharma was up 7.81 per cent to Rs 588.70 after reports that the company will reverse merger with a smaller company, TASC Pharma. TASC Pharma was frozen at the 5 per cent upper limit of the circuit of Rs 300.55.

Cement sector stocks ended with marginal gains with ACC up 1.56 per cent to Rs 367.90, Grasim up 0.99 per cent to Rs 1,343 and Gujarat Ambuja Cements up 0.63 per cent to Rs 442.60 after companies announced rise in cement despatches for month of February.

L&T was down 2 per cent to Rs 1,113.60 on profit booking after a smart rally in the past few days. The stock had touched a all time high in yesterday's trading.