Volatility hits recovery

STOCKS REPORT

Operators were back in force on Wednesday, helping the market recover from its intra-day low.

In a volatile trading session, the Bombay Stock Exchange (BSE) Sensex closed lower but traded volumes were marginally higher.

Technology, auto and metal counters were among the biggest losers, while select consumer durables and pharma scrips witnessed buying.

The Sensex hit a high of 6458.29 and a low of 6380.53 in intra-day trades before finally closing at 6447 points, down 19 points (0.29 per cent) from its previous close. The BSE Small-Cap index was up 0.37 per cent and the Mid-Cap index gained 0.33 per cent.

A dealer from a local brokerage said, "Frontline counters faced selling pressure after recent gains but action was seen on side counters. Some unwinding was also seen, which lead to the intra-day volatility. Investors are awaiting some strong impetus and the monsoon will now be closely watched."

The Sebi order on UBS Securities dampened sentiment somewhat, brokers said.

Among frontline counters, 18 out of the 30-scrip Sensex basket closed lower. The breadth of the market was positive, with gainers outpacing losers 13:10 on the BSE. Volumes were higher than on Monday, with a turnover of Rs 2,106.34 crore recorded on the BSE and Rs 4,158.39 crore on the NSE.

SBI was the biggest gainer in the Sensex basket, rising 2.41 per cent to close at Rs 642.25, Tata Power was up 1.77 per cent to Rs 365.75, Hero Honda gained 1.24 per cent to Rs 557, L&T was up 1.21 per cent to Rs 1,036.60 and Ranbaxy was up 0.96 per cent to Rs 969.55.

BHEL was the biggest loser in the Sensex basket, falling 2.98 per cent to Rs 837.55, Hindalco was down 2.83 per cent to Rs 1,175.20, Bharti Tele-Ventures fell 2.59 per cent to Rs 214.25, Tata Motors was down 2.22 per cent to Rs 436.90 and Gujarat Ambuja Cement fell by 1.43 per cent to Rs 438.95.