Bargain buying prop-up

STOCKS REPORT

Last minute bargain buying by institutions helped the market close in the positive territory on Tuesday.

In a volatile session, select selling pressure in frontline companies at higher levels was seen. Opening in the negative territory, the benchmark Bombay Stock Exchange (BSE) Sensex closed marginally higher as investors bought consumer durables, capital goods, oil and technology stocks, which were among the biggest gainers during the day.

Select fast moving consumer goods, pharmaceutical and metal counters closed lower on selling pressure.

In the Sensex basket, 17 out of the 30 scrips closed higher. The breadth of the market was positive, with gainers outpacing losers in the 7:5 ratio.

A dealer at ICICI Securities said the market was seeing profit taking at higher levels but bargain buying was helping to recover losses. Volatility was visible as investors appeared undecided because of a lack of fresh impetus, he added.

The next big trigger is expected to be the Union Budget, which will be announced at the end of this month, analysts said.

Strong buying support from foreign funds in the last few sessions has helped the market record a rally but the undertone appeared cautious, brokers said.

A lack of active domestic participation has also raised concerns among market players, they added.

Opening in the negative territory, the Sensex hit a high of 6,573.93 and a low of 6,508.33 in intra-day trades, before closing at 6,544.77, up 9.60 points (0.15 per cent) from Monday's close.

Volumes were at the same levels as on Monday in the cash segment. The BSE reported a turnover of Rs 2,299.74 crore, while the National Stock Exchange posted a turnover of Rs 4,908.32 crore.

HDFC was the biggest gainer in the Sensex basket, rising 3.04 per cent to close at Rs 816.50, followed by Maruti Udyog, up 1.75 per cent to Rs 467.05, HDFC Bank gained 1.66 per cent to Rs 570.25, Hindalco up 1.30 per cent to Rs 1383.35 and ACC up 1.12 per cent to Rs 369.60.

Bharti Tele-Ventures was the biggest loser in the Sensex basket, losing 2.67 per cent to close at Rs 214.85, followed by Cipla, down 1.40 per cent to Rs 273.90, Hindustan Lever fell 1.30 per cent to Rs 160.05, State Bank down 1.17 per cent to Rs 635.15 and Ranbaxy Labs down 1.06 per cent to Rs 1,050.40.

Foreign institutional investors were net buyers worth Rs 105 crore on Monday, while domestic mutual funds were net sellers to the tune of Rs 85 crore, as per data on the Securities and Exchange Board of India website.