Slight correction

STOCKS REPORT

Buying interest in auto, bank and cement stocks failed to arrest the downfall as the market corrected after a sharp rally in the past few days.

The benchmark Sensex ended 25.58 points lower to 7119.76, recovering from the day's low of 7090.48. The Nifty ended 3.50 points higher to close at 2183.

Brokers feel that a correction of 200-250 points will be good for the markets. The Sensex needs to cool off and consolidate at 7000 levels.

The breadth of the market turned positive, (after four consecutive days of negative outing) with 1,273 stocks advancing as against 1,212 stocks declining.

A fund manager with a domestic broking firm said, "The markets may correct further, but there is no sign of panic. The breadth of the market has improved in the last two days which shows that the overall mood in the market is not very bearish."

The volumes on the exchanges were moderate and accounted for Rs 2,780.32 crore on BSE and Rs 5,162.76 crore on the National Stock Exchange (NSE).

Among the indices, the BSE Auto index was up by 1.22 per cent or 35.19 points to 2911.49, Bankex appreciated 0.69 per cent or 27.29 points to 3973.87 and the BSE PSU index was up 0.48 per cent to 4326.18. Among the losers, the BSE TECK index was down 1.08 per cent to 1863.80 and the BSE Oil&Gas index was down 0.56 per cent to 3404.59.

Frontline stocks witnessed profit booking pushing the Sensex down at close. Among the big losers, TCS was down 2.05 per cent to Rs 1,306.55, HDFC was down 2.03 per cent to Rs 854.05, Infosys ended 1.97 per cent lower to Rs 2,343.50.

Auto stocks witnessed renewed buying in anticipation of good monsoon. Hindustan Motors was up 6.14 per cent to Rs 44.95, TVS Motors was up 4.85 per cent to Rs 76.75, Hero Honda was up 4.82 per cent to Rs 580.80, Bajaj Auto was up 3.23 per cent to Rs 1,311.60 and Swaraj Mazda was up 2.84 per cent at Rs 353.50.

Among the Sensex gainers, SBI was up 3.37 per cent to Rs 683.30, Ranbaxy Laboratories was up 1.66 per cent to Rs 1,097.85, Hindalco was up 1.16 per cent at Rs 1,194.45, ACC was up 0.99 per cent to Rs 386.70, Hindustan Lever was up 0.58 per cent to Rs 155.10 and Gujarat Ambuja Cement was up 0.47 per cent to Rs 64.45.

Foreign institutional investors were net buyers of Indian shares worth Rs 1,467.60 crore ( this include the HDFC block deal of Rs 1,000 crore) on Wednesday, while domestic mutual funds were net sellers to the tune of Rs 305.05 crore.

Selected bank stocks ended higher on renewed buying interest. Bank of India gained 5.9 per cent to Rs 101.40, UCO Bank was up 4.44 per cent to Rs 28.25, Karnataka Bank was up 4.38 per cent to Rs 94.15 and Andhra Bank was up 3.81 per cent to close at Rs 99.40.

However, Centurion Bank lost 1.96 per cent to Rs 14.97, HDFC Bank lost 1.74 per cent to close at Rs 579.20, ICICI Bank lost 0.68 per cent to Rs 417.75 and UTI Bank lost 0.52 per cent to Rs 240.25.

Refinery stocks had a mixed day with frontliners such as Bhrat Petroleum ending 1.27 per cent at Rs 364.15, ONGC, down 0.64 per cent to Rs 953.05, IBP, down 0.60 per cent to Rs 489.65, Petronet LNG, down 0.48 per cent to Rs 41.80 and Chennai Petro ending 0.34 per cent lower to Rs 191.65.

The top gainers in the sector were Kochi Refineries, up 0.92 per cent at Rs 158.85, HPCL, up 0.17 per cent at Rs 317.10, Bongaigaon Refineries, up 0.16 per cent at Rs 94.35, MRPL, up 0.11 per cent at Rs 46.75 and Indian Oil Corporation, up 0.02 per cent at Rs 429.05.