Cement, metals in rescue act

STOCK REPORT

Benchmark indices recovered to close up marginally on selective rise in cement and metal shares as the Railway Budget detailed on Monday left freight charges unchanged while proposing connectivity to upcoming units.

Reduction in freight rates on petrol and diesel by 5 per cent is also seen lowering metal and cement company's transportation costs.

Rise in bank shares also supported the indices further as valuations appeared to be attractive after last few week's sustained fall.

The Reserve Bank of India's announcement late Friday that it will pay interest to banks on their cash reserve ratio balance eased concerns over banks January-April earnings. CNX Bank Nifty rose 1.1 per cent on Monday led by 5 per cent rise in Punjab National Bank.

Build up of long positions in Nifty March contract that ended at a 19-point premium to the spot and 11 per cent rise in open interest also helped the index recover towards close, dealers said.

"The market revived as there was some last moment value buying, particularly in cement and banking stocks," Biranchi Sahu, head of institutional equity, Khandwala Securities, said.

The Bombay Stock Exchange's 30-share Sensex on Monday ended at 13649.52, up 16.99 points of 0.1 per cent from Friday.

The National Stock Exchange's 50-share Nifty provisionally ended at 3952.35, up 13.40 points or 0.3 per cent.Turnover on both exchanges collectively was Rs 13,000 crore .

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Reliance dips 2% on warrant move

Shares of Reliance Industries fell on concern that it will sell stock to help fund more than $13 billion of investments.

The stock dropped as much as 2.2 per cent to Rs 1,381.75 on BSE after the company's board on Saturday approved a proposal to allow Chairman Mukesh Ambani and his associates to buy warrants convertible into shares.

The promoters would hike the stake by as much as 8.6 per cent in a move widely interpreted as an attempt to thwart possible takeover threats.