Tech shares in focus

STOCKS REPORT

Technology scrips were in the limelight as investors turned cautious buyers after the last three sessions saw a fall of more than 200 points.

The benchmark Bombay Stock Exchange (BSE) Sensex closed above the 6400 level as investors made small purchases in blue chips, taking a cue from strong quarterly results and encouraging outlook from technology major MphasiS BFL but volumes remained low.

Investors bought consumer durables, banking, technology and metal counters, which were among the biggest gainers on Tuesday. Brokers said that the market is expected to remain rangebound and are hoping that the results season will provide the much awaited direction.

Opening in positive territory, the BSE Sensex hit a high of 6472.04 and a low of 6404.35 in intra-day trades before closing at 6464.61, up 67.09 points (1.05 per cent) from Monday's close.

In the BSE Sensex basket, 26 out of the 30 scrips closed higher. The breadth of the market was also positive, with gainers outpacing losers 7:4. Volumes were marginally higher than on Monday in the cash segment of the bourses; the BSE reported a turnover of Rs 1,594.42 crore and the NSE reported a turnover of Rs 3,260.69 crore. Volumes remain subdued as investors await some impetus before taking big buy calls, analysts said.

A dealer at IL&FS Investsmart said, "The sentiment was positive on Tuesday but big buying was absent as investors await Infosys results to give clear direction."

Some volatility is expected going ahead as investors factor in company results. But some analysts said that the recent correction was actually to factor in any negatives in the Q4 results and a rally may be seen post results.

The ICICI Bank scrip was the biggest gainer in the Sensex basket, rising 3.53 per cent to close at Rs 408.15, Satyam was up 2.26 per cent to Rs 409.85, Tata Power was up 2.14 per cent to Rs 347.70, HLL gained 2 per cent to Rs 132.65 and Tata Steel gained 1.99 per cent to Rs 388.70.

The Sensex basket losers included HDFC Bank, down 0.13 per cent to Rs 558.35, Dr Reddy's fell 0.22 per cent to Rs 745, Wipro fell 1.02 per cent to Rs 645.65 and Zee Telefilms was down 2.58 per cent to Rs 138.