Derivatives trend provides the lifter

STOCKS REPORT

Smooth rollover of open positions in the derivatives on expiry of March contracts lifted key indices towards close.

Banking, steel, and auto shares which were battered in the run up to the expiry of the contracts, were the biggest gainers as investors began focussing on the quarterly earnings season which kicks off in early April, analysts said.

In fact, several mid-cap stocks witnessed hectic action. Derivatives contracts expire on the last Thursday of every month.

The 30-stock Sensex rose 19.16 points or 0.36 per cent to close at 5,414.44. During the day, Sensex swung between a high of 5,438.86 and a low of 5,368.88. On the National Stock Exchange (NSE), the broader S&P CNX Nifty gained 12.35 points or 0.7 per cent to close at 1,704.45.

Market momentum was with gainers outnumbering losers following a surge in mid-cap stocks. Of a total of 1,835 stocks that changed hands on BSE, 1,166 stocks advanced and 604 stocks declined. The turnover on BSE was higher today at Rs 2,006.24 crore compared with Wednesday's 1,810.50 crore.

Sanjay Sinha, a fund manager with UTI Mutual Fund, said, "The end of expiry-related selling, which was the fear in investor's minds, triggered the rally and now investors are hopeful about the earnings season."

The Thursday rally was led by State Bank of India, which surged more than three per cent to close at Rs 566.35 on hectic foreign fund buying. Buying interest spread across other second-line banking counters too.

Bank of Baroda rose 7.60 per cent to Rs 226, Punjab National Bank (PNB) gained 4.50 per cent to Rs 303.45, Oriental Bank of Commerce jumped 4.50 per cent to Rs 270, and Vijaya Bank gained 3.60 per cent to Rs 60.75 on bargain hunting.

Tata Steel vaulted 4.30 per cent to Rs 371.75 on renewed buying interest after a recent setback to the stock. Meanwhile, short covering and value buying at lower levels triggered recovery in auto counters.

Eicher Motors gained 7 per cent to Rs 207, Kinetic Motor gained 4.30 per cent to Rs 25.40, Ashok Leyland gained 3.50 per cent to Rs 236.45, and Tata Motors gained more than three per cent to close at Rs 453. But Hindustan Lever reeled under selling pressure today. The stock slipped 1.80 per cent to close at Rs 145.45 on heavy volume

Elsewhere, Tata Power surged 3.8 per cent to Rs 359.55, on reports that GAIL has joined Tata Power and British Petroleum to bid as a group for bankrupt US energy firm Enron Corp's Indian assets.

Bharti Tele-Ventures surged more than four per cent to close at Rs 145.45 on reports that the company plans to raise funds by issue of foreign currency convertible bonds (FCCBs).

Technology shares rebounded after being hammered in the past two days on fears that a weakening dollar could hurt the margins of these export-oriented companies.

Infosys Technologies rose 2.40 per cent to Rs 5,166.10 and Satyam Computer Services jumped 2.20 per cent to Rs 306.40. The rupee has appreciated by 1.1 per cent in the past four trading sessions and is near a 44-month high against the dollar.

But pharma stocks continued to reel under selling pressure. Dr Reddy's slid 1.70 per cent to Rs 970 and Ranbaxy Laboratories shed 2.30 per cent to Rs 894.55. Cipla lost 3.90 per cent to Rs 1,127 on disappointment that the company did not announce bonus shares with stock-split.