Cement to the rescue

STOCKS REPORT

The markets bounced back sharply yesterday on late buying interest by traders in cement and metal stocks. However, market breadth was negative as traders continued to book profits after sharp gains and waited for corporate earnings to provide direction.

The 30-share BSE Sensex, which swung in intraday range of 115 points, ended with a modest gain of 13.38 points at 5,957.02.

In intraday trades, the Sensex touched a high of 5,985.30 and a low of 5,870.55. But the broader NSE S&P CNX Nifty index shed 9.95 points to close 1,916.75.

"The market is looking for results season to provide fresh triggers," said Manish Kumar, a fund manager with UTI Mutual Fund.

He said some investors are booking profits at higher levels while those who missed the early rally are getting in. "We expect continued volatility till the big result on Friday," said Kumar.

Cement and steel stocks bounced back amid hopes of strong growth in quarterly earnings. Grasim Industries, the nation's No 3 cement maker, jumped 5.17 per cent to Rs 1,050.25.

Larsen & Toubro rose 2.50 per cent to Rs 534.55. Gujarat Ambuja Cements edged up 2.11 per cent to Rs 314.60. Associated Cement Companies stock prices vaulted 1.62 per cent to Rs 266.35.

Tata Steel, the biggest private sector steel maker, climbed 2.78 per cent to Rs 442.45, off from day's high of Rs 443.60 in intraday trades.

Elsewhere, Reliance Industries surged 2.01 per cent to Rs 579.65 on reports that Reliance Infocomm, in which the company owns 45 per cent stake, has emerged as the largest mobile telecom service provider in the country.

But MTNL shed 4.15 per cent to Rs 142.20 and Bharti Tele-Ventures eased down 0.93 per cent to Rs 111.95 on profit-taking, after recent gains.

ICICI Bank tumbled 2.29 per cent to Rs 304.95. Dr Reddy's Labs lost 2.10 per cent to Rs 1,411.65. While Ranbaxy Labs eased down 0.82 per cent to Rs 1,069.50.

Technology stocks took cue from the Nasdaq Composite Index's higher close overnight and settled higher. Software bellwether Infosys Technologies rose 0.34 per cent to close at Rs 5,674.05.

Other technology issues ended broadly firmer. Wipro surged 0.98 per cent to Rs 1,692.70. Satyam Computer added 0.04 per cent to Rs 357.90 on fund-based buying.

Elsewhere, Nocil surged 11.91 per cent to Rs 24.90 on talks of Reliance Industries in the final stages of buying out the company.

IVRCL Infrastructure added 6.94 per cent to Rs 166.50, spurting in an otherwise weak market after the company announced that it has been awarded three transmission projects of the value of Rs 78.79 crore, which are to be completed by October 2004.