Continuing gains

STOCKS REPORT

Despite a weak opening, the Bombay Stock Exchange (BSE) Sensex recovered in early afternoon trades to eventually close higher for the fifth straight day.

Pharma, consumer durables, technology and auto counters were among the biggest gainers today while select metal scrips witnessed selling pressure.

The BSE Sensex hit a high of 6612.25 and a low of 6537.61 in intra-day trades before finally closing at 6597.60 points, up 32.23 points (0.49 per cent) from its previous close. The BSE Small-Cap index was up 0.38 per cent and the Mid-Cap index gained 0.37 per cent.

A dealer from a domestic broking house said, "Despite a weak opening session, the market recovered on good buying interest in frontline counters. We saw some profit booking in mid-cap and small-cap counters today."

Investors are making small purchases in select counters, awaiting fresh impetus and direction. The current month's futures contracts expires on Thursday and investors will look for a trend from the roll-over numbers, brokers said.

A fund manager with a mutual fund said, "The market has been rangebound and volatile but we may be in the midst of a extended rally this time. All the factors are positive and I am extremely bullish."

Commodities should be the rally leader once again as most pressure points such as rising interest rates, international oil prices and inflation have been factored in.

The market looks fairly valued now and as new money continues to flow in via good initial public offerings, the market looks set to gain. But he added that unforeseen events will hang heavy on sentiment. Rainfall is a crucial element going forward.

Among frontline counters, 21 out of the 30-scrip Sensex basket closed higher. The breadth of the market was positive, with gainers outpacing losers 13:12 on the BSE.

Volumes were higher than on Tuesday, with a turnover of Rs 2,196.96 crore recorded on the BSE and Rs 4,244.74 crore on the NSE.

Foreign institutional investors were net sellers of Indian shares worth Rs 162.50 crore on Tuesday while domestic mutual funds were net buyers to the tune of Rs 347.84 crore.

SAIL was in the limelight today after an impressive Q4 result, analysts said. The counter hit a high of Rs 54.35 in intra-day trades before closing at Rs 54.05, up 3.44 per cent over its previous close. More than 1.44 crore shares were traded on the BSE.

Ranbaxy Labs was the biggest gainer in the Sensex basket, rising 3.77 per cent to close at Rs 1,040.20, followed by SBI, up 2.13 per cent to Rs 676.85, Dr Reddy's gained 1.98 per cent to Rs 704.55, Hero Honda was up 1.77 per cent to Rs 578.65 and ONGC was up 1.35 per cent to Rs 883.30.

Zee Telefilms was the biggest loser in the Sensex basket, falling 3.15 per cent to close at Rs 140, HDFC Bank was down 0.89 per cent to Rs 540.25, Tata Steel fell 0.77 per cent to Rs 355.10, BHEL was down 0.33 per cent to Rs 870.15 and HPCL fell 0.21 per cent to Rs 336.45.