Profit sales negate gains

STOCKS REPORT

The market closed flat as profit booking in blue-chips dragged the market down. The Bombay Stock Exchange Sensex rose 46 points to hit an intra-day high of 5148.53 before profit taking dragged the market down.

The Sensex closed at 5102.94, rising by 0.57 point over the Monday's close. Volumes continued to remain low with 21 out of the 30 scrips in the Sensex basket closing tad higher that their previous close, but lower than their intra-day highs. Gainers outpaced losers 11:7 on the BSE.

The National Stock exchange (NSE) Nifty index gained 5.20 points to close at 1,604.35.

Select buying was visible at lower levels as the undertone remained positive. But concerns over inflation still dampen sentiment, brokers said.

Brokers said that profit booking was visible in blue-chip counters after every rise and action has shifted to select mid-cap counters as buyers are chasing cheaper valuation scrips.

Players are busy churning their portfolios, selling over-valued scrips and looking to invest in under-valued counters, said a dealer from a local brokerage.

Brokers said that the Sensex should remain range bound in the near term as a lack of impetus is failing to give the market any direction.

The BSE consumer durable index rose 3.80 per cent, followed by the BSE TECk index, up 0.39 per cent and the capital goods index was up 0.37 per cent. The BSE FMCG index was the lone loser, down 0.05 per cent.

The Zee Telefilms counter was the biggest gainer in the Sensex basket, up 4.1 per cent to Rs 139.75, followed by Grasim, up 2.2 per cent to Rs 1049.90. ACC was up 1.9 per cent to Rs 265.45 and Gujarat Ambuja Cements gained 1.63 per cent to Rs 311.40.

Index heavyweights HLL gained 1.59 per cent to Rs 108.35, Reliance Industries gained 0.16 per cent to Rs 479.70, State Bank of India was up 0.1 per cent to Rs 441.80, but ITC fell 1.86 per cent to Rs 1018.25.

Ranbaxy Labs was the biggest loser on Tuesday, down 2.85 per cent to Rs 921.95, followed by the HDFC, down 2.27 per cent to Rs 541.10 and Dr Reddy's, down 1.06 per cent to Rs 720.70.

Satyam Computer fell 0.57 per cent to Rs 333.75, Infosys Technologies fell 0.39 per cent to Rs 1,481.45. But Wipro gained 1 per cent to Rs 545.75.