Blue chips save blushes

STOCKS REPORT

Value buying in bluechips ahead of the results season helped the market recover Tuesday's losses, in line with other major world markets.

The benchmark Bombay Stock Exchange (BSE) Sensex closed above the 6600 level as investors bought oil, FMCG, metal and consumer durables counters, which were among the biggest gainers on Wednesday.

Sentiment is that of nervousness as investor expectations are building up over corporate results, brokers said. Market is expected to remain rangebound, waiting for impetus, they added.

Volumes have dropped as investors are waiting on the sidelines before taking big fresh calls. But intermittent volatility is visible because of profit booking and value buying at different levels. Market entities are hoping that the results season will provide the much awaited direction.

Opening in positive territory, the BSE Sensex hit a high of 6617.20 and a low of 6551.68 in intra-day trades before closing at 6606.41, up 56.12 points (0.86 per cent) from Tuesday's close.

A head of research at Motilal Oswal Securities said, "Some volatility is expected going ahead as investors factor in actual company results and guidances against expectations. Investors are rebuilding their portfolios, looking ahead to the April earnings season for direction."

In the BSE Sensex basket, 23 out of the 30 scrips closed higher. The breadth of the market was also positive, with gainers outpacing losers 2:1. Volumes were higher than on Tuesday in the cash segment of the bourses; the BSE reported a turnover of Rs 2,113.30 crore and the NSE reported a turnover of Rs 4,212.73 crore.

The Zee Telefilms counter was the biggest gainer in the Sensex basket, rising 5.69 per cent to close at Rs 147.65, Reliance Industries was up 2.73 per cent to Rs 570.80, HLL gained 2.59 per cent to Rs 132.85, Tata Steel was up 2.08 per cent to Rs 390.35 and HDFC Bank gained 1.94 per cent to Rs 552.70.

Bharti Tele-Ventures was the biggest loser in the Sensex basket, falling 2.32 per cent to Rs 212.20.

Bajaj Auto fell 1.60 per cent to Rs 1,066.80, HDFC was down 1.22 per cent to Rs 714.75, Hero Honda fell 0.94 per cent to Rs 535.50 and Hindalco was down 0.36 per cent to Rs 1,366.60.

Foreign institutional investors (FIIs) were net buyers to the tune of Rs 103.40 crore on Tuesday while mutual funds have been net buyers to the tune of Rs 41.90 crore according to figures on the Securities and Exchange Board of India (Sebi) website.