FMCG, pharma up in flat mart

STOCK REPORT

Key indices ended flat on Tuesday after a choppy session marked by profit sales at every small rise.

However, the market came off its intraday lows after the European markets opened firm and the Asian markets staged a partial recovery.

Here, investors shifted focus to defensive stocks such as pharmaceuticals and fast moving consumer goods from frontline technology shares.

Software shares were the worst hit ahead of Infosys Technologies' earnings on Friday.

Dealers said investors have their eyes peeled for the software giant's earnings guidance for 2007-08, which is likely to be conservative due to the strengthening of the rupee.

Analysts expect Nifty firms to post a growth of 34 per cent in January-March.

The Sensex ended at 13189.54, up 11.80 points or 0.1 per cent, after touching a low of 13075.48 and a high of 13236.20 intraday.

The Nifty ended at 3848.15, up 4.65 points or 0.1 per cent. It moved between a low of 3819.30 and a high of 3858.35 in the session.

Combined turnover on both the exchanges was Rs 12,600 crore, up 25 per cent from Monday.

On Tuesday, mid-caps outpaced frontline shares. The CNX Midcap Index was up 1.1 per cent and the S&P CNX 500 Index, up marginally.

The BSE FMCG Index was up 2.2 per cent and the BSE Metal Index rose 1.1 per cent.

Metal shares extended gains as zinc and copper prices rose sharply on the the London Metal Exchange.

Dealers said funds sold software shares on concerns over Infosys earnings guidance for 2007-08, at 26 per cent, may disappoint as the company is likely to take into account increasing wages and the appreciating rupee.

The BSE Infotech Index ended down 2 per cent.

Satyam Computer Services ended at Rs 445, down 3.7 per cent, Infosys Technologies ended at Rs 2,000, down 2.4 per cent, and Wipro, at Rs 548, down 2.3 per cent.

The biggest Nifty gainers were Bharat Petroleum, up 5.4 per cent at Rs 329, Sun Pharma, up 3.8 per cent at Rs 1,089, and Housing Development Finance, up 3.2 per cent at Rs 1,607.

Oil retailers rose on Tuesday as crude oil prices have fallen to around $61 a barrel on the New York Mercantile Exchange.

Among losers, Punjab National Bank was down 1.3 per cent at Rs 451, and Bajaj Auto, down 1.2 per cent at Rs 2,270.

Suzlon Energy ended at Rs 993, up 0.5 per cent. The stock had fallen earlier in the session on news the company has raised its bid for REpower Systems to 150 euros (Rs 8,632) per share from 126 euros.

Tata Motors bucked the weak trend in automobile shares on reports it has entered into a sales tie-up with Fiat's truck unit Iveco. The stock ended up 2.5 per cent at Rs 721.

Jet Airways shares ended marginally up at Rs 645. The stock did not seem to react to news the company has agreed to buy Air Sahara for Rs 1,800 crore.

Indiabulls Financial Services ended 13 per cent up at Rs 502 on talks it will shut 1,000 branches across the country in order to cut costs.