Correction after peak

STOCKS REPORT

Markets corrected from higher levels on profit booking in frontline stocks at the fag end of the trading.

The benchmark BSE Sensex zoomed past 6800 levels in the morning trades on the back of strong opening in index heavyweights such as Reliance, SBI, Ranbaxy and Infosys.

However, investors sold metals, IT and oil stocks for various reasons. The Sensex finally settled at 6785.19, up 5.19 points. The Nifty closed almost flat at 2092.80.

Brokers said, "The buzz on settlement between the Ambani brothers led to a strong buying interest in Reliance group companies for the third consecutive days. However, concerns over high oil prices and below average monsoon forecast resulted in profit booking in frontline stocks."

Among Reliance group companies, Reliance Industries stock was down 0.58 per cent to close at to Rs 551.80. Reliance Energy, however, ended marginally higher at Rs 546.70, up 0.05 per cent.

"The market is nearing its top end of trading territory and the worry about higher oil prices, growth slowdown, delay in monsoon and deteriorating global liquidity may drift market into correction mode. We expect markets to remain range bound till there is a clarity on monsoon," said an equity analyst with a domestic broking firm.

The breadth of the market turned negative with 778 stocks advancing as against 1,007 stocks declining. Among the 30-share BSE basket, 14 shares ended negative on Monday. The volumes were moderate and accounted for Rs 2,007.48 crore on BSE and Rs 4,021.96 crore on the National Stock Exchange (NSE).

The BSE Oil and Gas index and BSE Tech index were the biggest losers in Monday's trading. BPCL ended lower at Rs 389.85 and HPCL ended 0.65 per cent lower at Rs 331.15.

Among technology stocks, Infosys Technologies was down 1.08 per cent to Rs 2,218.65, Satyam Computer was down 1.33 per cent to Rs 459.30, Wipro was down 1.04 per cent to Rs 714.90 and TCS was down 0.10 per cent to Rs 1,280.25.

Foreign institutional investors were net buyers of Indian shares worth Rs 32.7 crore on Saturday and Rs 302.50 crore while domestic mutual funds were net sellers to the tune of Rs 102.5 crore on Friday.

Among the gainers in Monday's trading were the new entrant NTPC, which ended 3.5 per cent higher to close at Rs 85.70, followed by HDFC Bank, up 2.67 per cent to Rs 553.20, SBI, up 2.42 per cent to Rs 682.25, ACC, up 1.83 per cent to Rs 380.55, HDFC, up 1.78 per cent to Rs 780.25, Ranbaxy, up 1.57 per cent to Rs 1,109.55, Tata Power, 1.55 per cent to Rs 380.85 and ONGC, up 1.11 per cent to Rs 936.30.

Metal stocks continue to drag lower following reduction in prices from June 1. The BSE Metal index was the biggest loser, down 0.93 per cent to close at 5357.35.

Hindalco was the biggest loser in the Sensex basket, down 2.55 per cent to Rs 1,080.50.

Among index heavyweights, HLL stock was down 2.06 per cent to Rs 147.55, Tata Steel was down 1.08 per cent to Rs 349.25, Hero Honda was down 0.95 per cent to Rs 552.50, ICICI Bank was down 0.27 per cent to Rs 394.25 and Tata Motors was down 0.11 per cent to Rs 436.45.

PSU banks and private sector banks edged higher in Monday's trading. The BSE Bankex was the biggest gainer, up 1.24 per cent at 3856.66. The bank stocks were in limelight on back of reports that the government is considering lifting the 20 per cent FII investment restriction in the largest commercial bank, SBI.

Marketmen also expect relaxation in foreign institutional investros' stake in other PSU banks from the existing 20 per cent. Indian Overseas Bank jumped 5.6 per cent to Rs 79.75, Bank of India gained 3.5 per cent to Rs 102.70, Oriental Bank of Commerce advanced 2.7 per cent to Rs 270.30, Bank of Baroda gained 2.6 per cent to Rs 197, Corporation Bank gained 2.5 per cent to Rs 350, Union Bank of India gained 2 per cent to Rs 107.75, State Bank of India gained 1.9 per cent to Rs 679 and Punjab National Bank gained 1 per cent to Rs 389.50.