Metal, tech stocks cull gains

STOCKS REPORT

The Sensex scaled to a new 2-month high on back of buying support in auto, consumer durable and FMCG stocks. However, investors sold metals and IT sector stocks in a relatively lacklustre trading day.

The benchmark BSE Sensex slipped from its day's high of 6763.28, to finally close 14.79 points higher at 6729.90. The Nifty ended almost flat at 2087.55.

Brokers said, "the markets are expected to exhibit volatile trend as it lacks fresh impetus for an upside. We expect the markets to trade sideways for the next couple of days."

Select frontline stocks ended positive on renewed buying interest. Among the big gainers, Reliance group stocks hogged the limelight for the second consecutive day.

Reliance Energy was the third biggest gainer in the Sensex basket of 30 stocks, gaining 2.08 per cent to close at Rs 527.10. Reliance Industries scrip was up 0.96 per cent to Rs 540.40 and IPCL was up 0.98 per cent to Rs 164.9. The buzz in the market is that the Ambani brothers will reach a settlement soon.

The other big gainers were HLL, up 4.33 per cent to Rs 149.35, Bajaj Auto scrip was up 2.35 per cent to Rs 1,256.20, ICICI Bank was up 1.67 per cent to Rs 398.60, Tata Motors was up 1.28 per cent to Rs 438.50 and Hero Honda was up 1.22 per cent to Rs 559.75. Of the 30 share BSE basket, only 12 stocks ended negative.

The breadth of the market was negative with 743 stocks advanced as against 948 declines. The volumes were slightly higher and accounted for Rs 1,952.11 crore on BSE and Rs 4,271.26 crore on NSE.

Pharma sector stocks witnessed some buying interest with front-line stocks such as Ranbaxy gaining 1.22 per cent to Rs 1,114.40 and Cipla gaining one per cent to Rs 292.35. Dr Reddy's gained nearly one per cent to end at Rs 731.45.

An equity dealer with a domestic broking firm said, "The markets clearly lack direction and there would be profit booking at each higher level in frontline stocks."

In Wednesday's trading, the big losers in frontline stocks were Tata Power, down 2.43 per cent to Rs 377.15, Tata Steel was down 1.82 per cent to Rs 356.25, SBI lost 1.6 per cent to Rs 659.90 and Hindalco was down 1.5 per cent to Rs 1,113.25. The BSE metal index was the biggest loser in Wednesday's trading on selling pressure in most metal stocks.

SAIL was down 3.75 per cent to Rs 52.60 on announcement of reduction in steel price by Rs 500-2,000 per tonne, while Nalco dropped on reports that it has reduced aluminium prices by about Rs 2,500 per tonne taking a cue from subdued global aluminium prices.

Nalco was down 1.54 per cent to Rs 143. 05. Tisco lost 1.8 per cent to Rs 356, Ispat Industries was down 2.6 per cent to Rs 20.10, Uttam Galva Steel was down 3.5 per cent to Rs 47 and Lloyds Steel lost 4.8 per cent to Rs 17.75.

Foreign institutional investors were net buyers of Indian shares worth Rs 298.5 crore on Tuesday while domestic mutual funds were net sellers to the tune of Rs 75.4 crore.