Technology, metals lead recovery

STOCK REPORT

The benchmark indices went up by nearly 1 per cent on Thursday, led by gains in technology and metal shares, and short covering in the derivatives segment.

The markets oscillated between positive and negative territories throughout the session. The Sensex ended at 17734.68, up 117.08 points, and Nifty closed at 5191.80, up 37.35 points.

The shares rose over 1 per cent at opening bell due to positive cues from the US and Asian markets. A firm European market also provided support to the street. However, basket selling by funds caused share indices to erase gains and fall 1 per cent in the middle of the session.

"In the last hour of trade, investors who had gone short early in the morning covered their positions, helping the market recoup losses. The Nifty consistently faced selling pressure above 5200 levels," said a dealer.

The technology shares extended gains for a second session on value buying. Recent weakening of the rupee also aided gains in the sector.

Satyam was the top Nifty gainer, rising by 8 per cent to Rs 457, while HCL Technologies ended up 7 per cent to Rs 286. Infosys rose 4 per cent to Rs 1,628.

Metal shares were also firm, led by steel shares, on hopes of a hike in steel prices. Tata Steel ended up 4 per cent to Rs 806 and Sail rose 6 per cent to Rs 237.

Bank shares declined for a second session in a row with the CNX Bank Nifty ending down 2 per cent. Analysts said recent reduction in rates could hurt the banks' margins. ICICI Bank fell 2 per cent to Rs 1,141 and State Bank of India declined 1 per cent to Rs 2,179. Punjab National Bank was down 5 per cent at Rs 583.

The shares of capital goods companies also fell. ABB ended down 4 per cent at Rs 1,213 and Larsen & Toubro shed 0.3 per cent at Rs 3,452.

Reliance Energy and Cairn India, up nearly 3% each at 1,615 rupees and 214 rupees, respectively, were other major gainers on NIfty.