Nifty stays in the limelight

STOCK REPORT

The Nifty closed at a record high for the second straight session, settling marginally higher than Monday's finish, as investors were cautious due to worries over long-term sustainability of recent gains.

Trade on Tuesday was volatile due to alternate bouts of bottom fishing and profit sales, dealers said. Firmness in other Asian markets provided support to key indices.

After opening at all-time high, the Nifty succumbed to profit sales as some investors opted to stay on the sidelines, dealers said.

CLSA Asia-Pacific Markets has said that global markets are in the blow-out stages of one of the biggest bubbles.

The Bombay Stock Exchange Sensex ended at 14453.72, up 35.12 points or 0.2 per cent, after touching a low of 14348.26 and a high of 14483.59 intraday.

The National Stock Exchange Nifty ended at 4278.10, up 17.20 points or 0.4 per cent. It moved between a low of 4234.10 and an all-time high of 4281.60 in the session.

The combined turnover on the two exchanges was Rs 16,600 crore. "There is more hedging and speculation taking place in the market right now. The focus is on frontline stocks. Until we see buying in the mid-cap segment, there will be worries over whether these gains can sustain," a dealer said.

The CNX Midcap Index ended up 0.6 per cent and the S&P CNX 500 Index up 0.3 per cent.

The biggest sectoral gainer was BSE Capital Goods Index, up 0.6 per cent. Media stocks took centre stage in Tuesday's trade amid some news-driven, stock-specific activity. Zee Entertainment, up 4.5 per cent at Rs 312, was the top Nifty gainer.

Sentiment for media shares was up amid positive news flows and as valuations are attractive, dealers said. Zee Entertainment gained on reports Telecom Regulatory Authority of India will review tariff of non-CAS (conditional access system) areas.

Balaji Telefilms, up 2 per cent at Rs 245, extended gains for the second straight session. NDTV was up 2.4 per cent at Rs 428.

Shares of TV18 group companies hit upper circuit after the parent announced a 50-50 joint venture with Viacom Inc, called Viacom18. Television Eighteen ended up 2.4 per cent at Rs 868, Global Broadcast News up 5 per cent at Rs 780, and Network 18 Fincap up 5 per cent.