Positive ending

STOCKS REPORT

The market managed to close in positive territory but a highly volatile trading session suggested that the direction was sorely missing.

And most market entities are hoping that heavyweight Infosys Technologies will provide just that tomorrow when the company announces its results.

The benchmark Bombay Stock Exchange (BSE) Sensex closed above the breakeven despite numerous sorties in negative territory in intra-day trades.

Investors bought fast moving consumer goods (FMCG), cement and capital goods scrips which were among the biggest gainers on Wednesday but some selling was seen in metal and consumer durables counters.

Brokers said that the market is expected to remain rangebound and are hoping that the results season will provide the much awaited direction. Opening in positive territory, the BSE Sensex hit a high of 6515.82 and a low of 6449.33 in intra-day trades before closing at 6467.92, up 3.31 points (0.05 per cent) from Tuesday's close.

In the BSE Sensex basket, 15 out of the 30 scrips closed higher. But the breadth of the market was negative, with losers outpacing gainers 13:10. Volumes were higher than on Tuesday in the cash segment of the bourses; the BSE reported a turnover of Rs 1,828.17 crore and the NSE reported a turnover of Rs 3,819.04 crore. Volumes remain subdued as investors await some impetus before taking big buy calls, analysts said.

A dealer at a local brokerage house said, "The trading session started out on a positive note, extending gains from yesterday but nervousness was evident as investors await Infosys results to give a clear indication."

Volatility was seen on account of alternate bouts of buying and selling but volumes were low, he added. Brokers said that investors also played safe, preferring to stay away, ahead of the holiday tomorrow for Babasaheb Ambedkar Jayanti.

Cement stocks rose after Gujarat Ambuja Cements announced that it will consider an issue of bonus shares and a stock-split, analysts said.

The Gujrat Ambuja scrip was the biggest gainer in the Sensex basket, rising 4.75 per cent to close at Rs 425.25, HDFC was up 1.86 per cent to Rs 722.90, Hindustan Lever gained 1.55 per cent to Rs 134.70, HPCL was up 1.42 per cent to Rs 327.85 and BHEL gained 1.27 per cent to Rs 801.45.

The Hero Honda counter was the biggest loser in the Sensex basket, falling 2.28 per cent to Rs 513.60, Tata Steel was down 2.01 per cent to Rs 380.90, Reliance Energy fell 1.65 per cent to Rs 513.55, Zee Telefilms was down 1.45 per cent to Rs 136 and Dr Reddy's fell 1.08 per cent to Rs 736.95.

Foreign institutional investors (FIIs) were net sellers to the tune of Rs 108.70 crore on Tuesday while mutual funds were net buyers to the tune of Rs 57.29 crore according to figures on the Securities and Exchange Board of India (Sebi) website.