Blue chips to the rescue

STOCKS REPORT

The markets closed in the positive territory despite the wholesale price inflation rate jumping up to 8.17 per cent in the year to August 21, a new 3.5 years peak and up from the previous week's 7.94 per cent, according to data released on Friday.

Volumes were low but the Bombay Stock Exchange (BSE) Sensex closed 0.38 per cent (19.74 points) higher at 5218.46. Moving in a range of 45.37 points on either sides of the breakeven, the Sensex hit a high of 5223.94 points and a low of 5178.57 points in intra-day trades in lacklustre trades.

Blue chips witnessed select buying, with 18 out of the 30-scrip Sensex closing higher. Gainers outpaced losers 950:933 on the BSE.

Action was seen in select frontline as well as mid-cap stocks, but concerns over high domestic inflation rates and international oil prices continued, said market players.

"Select buying was seen today with mid-cap counters witnessing some selling pressure after hectic activity in the last few weeks," said a dealer from a local brokerage.

Market players said that there were talks in the market that some mid-cap companies would be shifted to the Trade-to-Trade segment, which also affected sentiment to an extent.

BHEL was the biggest gainer in the Sensex basket, up 4.18 per cent to Rs 592.80, followed by the Zee Telefilms, up 3.62 per cent to Rs 158.80. Tata Power was up 3.18 per cent to Rs 279.10, SBI gained 2.25 per cent to Rs 462.15 and Satyam Computer closed up 2.1 per cent to Rs 357.50.

Bharti Tele-Ventures was the biggest loser in the Sensex basket, down 1.54 per cent to Rs 134.50, followed by the HLL, down 1.07 per cent to Rs 110.85 and Cipla, down 0.95 per cent to Rs 235.10. HPCL fell 0.82 per cent to Rs 313 and Tata Motors was down 0.71 per cent to Rs 383.70.

The BSE Bankex was the biggest gainer today, up 1.30 per cent, followed by the capital goods index, up 1.25 per cent. The BSE Metal index was up 0.91 per cent. The BSE consumer durables index was the biggest loser, down 0.67 per cent, followed by the FMCG index, down 0.33 per cent and the Auto index, down 0.06 per cent.