Course correction

STOCKS REPORT

The market closed flat on Thursday. Volumes were low with the Bombay Stock Exchange (BSE) Sensex closing 0.07 points higher at 5,298.23. Moving in a range of 59 points on either sides of the breakeven, the Sensex hit a high of 5,328.33 points and a low of 5,269.51 points in lacklustre intra-day trades.

Blue-chips witnessed selling pressure, with 21 out of the 30-scrip Sensex closing lower. The broader markets were also negative. Losers outpaced gainers 13:5 on the BSE.

The BSE FMCG index was the biggest gainer, up 2.39 per cent, followed by the Healthcare index, up 0.16 per cent. The BSE consumer durables index was the biggest loser, down 2.02 per cent, followed by the PSU index, down 1.15 per cent.

Brokers said that a correction was expected after the gains of the last four sessions.

Said a dealer from a local brokerage, "Expectations of a strong economic growth and the easing of international oil prices have helped the market rise but concerns over rising domestic inflation has capped gains. Select buying was seen on Thursday with mid-cap counters witnessing selling pressure after hectic activity in the last few weeks."

Market players said that most mid-cap stocks have already appreciated a lot in the last few weeks and big players would be looking to exit from these counters.

Said a dealer from a local brokerage, "Everybody is talking of the mid-cap story now but most of the stocks have already appreciated a lot and we may just see shares moving from stronger hands to weaker hands in the near future."

He added that the small investor must be careful before buying scrips on hearsay. Another broker added that though the undertone is positive but there is a lack of impetus. Said a dealer from a local brokerage, "We expect the market to remain rangebound in the near term."

FMCG pivotal ITC was the biggest gainer in the Sensex basket, up 3.58 per cent to Rs 1,080.05, followed by the HLL counter, up 2.24 per cent to Rs 118.65. Ranbaxy Labs gained 1.33 per cent to Rs 998.70, Gujarat Ambuja Cements was up 0.82 per cent to Rs 336.75 and ICICI Bank was up 0.81 per cent to Rs 267.35.

Zee Telefilms was the biggest loser in the Sensex basket, falling 5.18 per cent to Rs 151.15, followed by the HDFC Bank, down 3.09 per cent to Rs 382, Bharti Tele-Ventures scrip fell 2.75 per cent to Rs 132.75.

Turnover was low in the cash segment of the bourses; the BSE reported a turnover of Rs 1,574.06 crore and the National Stock Exchange reported a turnover of Rs 3,556.87 crore.

Foreign institutional investors were net buyers of Indian shares worth Rs 45.50 crore on Wednesday while domestic mutual funds were net buyers to the tune of Rs 77.80 crore.