Profit hunters on the prowl

STOCKS REPORT

The markets came off from the day's high on profit booking in the last half an hour of the session on Monday.

The Bombay Stock Exchange (BSE) Sensex closed with a modest gain of 1.01 per cent or 49.15 points at 4,938.15 after touching an intra-day high of 4,991.48. The NSE S&P CNX Nifty Index closed 21.45 points higher at 1,542.55.

Infrastructure stocks witnessed a smart rally as President Abdul Kalam said that the United Progressive Alliance government at the Centre would boost core sector development through increased investment in roads, ports, airports and power.

"Though the markets gained nearly 50 points at close, it was on thin volumes. Traders are extremely cautious due to the extreme volatility and investors are looking at higher levels to exit," said an equity dealer with a leading broking firm.

The lack of buying was evident from the fact that the cash volumes on the BSE accounting for a mere Rs 1,722.42 crore.

Construction and infrastructure sector stocks were in the limelight with JMC Projects gaining 16.78 per cent to Rs 17.05. Others like IVRCL Infrastructure, Gammon India, Hind Construction and Nagarjuna Construction were up in the range of 2.5-6.4 per cent on hopes of emphasis on infrastructure development. Among index heavyweights Reliance Industries gained 2.57 per cent to Rs 444.75, while ITC was up 1.43 per cent to Rs 890.50.

Meanwhile, Hindustan Lever ended at Rs 136.75, down 1.37 per cent on profit booking at the fag end of the trading session.

Bharti Tele-Ventures witnessed value buying after the recent fall on concerns over foreign direct investment in the telecom sector. The stock gained 6.42 per cent to Rs 140.90 on impressive volumes.

Select public sector stocks also gained on value buying at lower levels. Oil major Oil and Natural Gas Corporation ended 3.45 per cent higher at Rs 673.15, while Mahanagar Telephone Nigam was up 2.60 per cent to Rs 120.25. Hindustan Petroleum Corporation ended marginally higher at Rs 330.70, after the recent hammering.

Federal Bank ended 7.19 per cent higher to Rs 354.20 after the company declared a 2:1 bonus issue. The stock, in intra-day trades, zoomed to the day's high of Rs 363.75 backed by huge volume of over 8.1 lakh shares on the BSE.

Reliance Energy was up 2.47 per cent to Rs 537.70 after hitting the day's high of Rs 544.50 ahead of the company's board meeting on June 9 to consider a buy-back of shares.