The Hindu Business Line : Good show by banking, tech stocks

AFTER a wave of profit-booking on Tuesday, the markets bounced back on Wednesday even amid apprehensions that the proposal to tax fringe benefits may have a negative impact on companies.

Banking stocks, which witnessed selling pressure on Tuesday, found their way back into the gainers' list. Technology stocks led the initial gains but lost steam over the course of the trading session.

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The BSE Sensex ended the day 36 points higher at 6686.89 points, buoyed by buying interest in index heavyweights ICICI Bank and Bharti Tele-Ventures. The S&P CNX Nifty gained about nine points to close at 2093.25 points, up from its previous close of 2084.40 points. There was action in the mid-cap space, with the CNX Mid-cap 200 gaining 1.71 per cent, as against the Nifty's gain of 0.42 per cent. The CNX Nifty Junior trounced all other NSE indices, soaring 2 per cent.

The Sensex opened on a positive note at 6658.94, up from the previous close of 6651.08. Market sentiment was positive throughout, as reflected by the advance-decline ratio. Of the 30 stocks that constitute the Sensex, 17 advanced while 13 declined. Key index gainers included the stocks of Bharti Tele-Ventures and ICICI Bank, which gained 5.45 per cent and 4.62 per cent, respectively. Weakness in the stocks of ONGC, HDFC, L&T and Ranbaxy tempered the day's gains.

Banking stocks were the prominent favourites. The BSE Bankex Index spurted by close to 3 per cent. The stocks of Union Bank, Kotak Mahindra Bank and Bank of India gained smartly; the stocks appreciated by more than 5 per cent during the trading session.

The renewed thrust on infrastructure and the decision to allow FDI in construction had stocks belonging to the steel, cement and construction sector evince buying interest. Steel stocks such as Tata Steel, SAIL, Jindal Steel and Essar Steel were notable gainers. Essar Steel gained close to 10 per cent to close at Rs 49.7. Volumes shot up to 1.08 crore on Wednesday from 32 lakh on Tuesday's trading.

Selective buying was also seen in construction stocks such as Gammon India, Nagarjuna Construction, Madhucon Projects and Simplex Concrete. The stock of Nagarjuna Construction rose by Rs 27.8 to close at Rs 520, following an announcement that it had secured orders worth Rs 330 crore over the past month.

Stocks of companies in the real estate space, such as Ansal Properties and Morarjee Realties, also picked up.

The stock of Bombay Dyeing continued its upward trend, adding Rs 14 to close at Rs 308.45. It has attracted attention over the past few days, due to the company's considerable real estate holdings.

Other gainers included pharmaceutical stocks such as Aventis Pharma, Glenmark Pharma, GlaxoSmithKline and Orchid Chemicals. Stocks such as KPIT Cummins, Saint Gobain, TNPL, Crew B.O.S, Nava Bharat Ferro Alloys, Aban Lloyd Chiles, Rajesh Exports, Avaya Global and Gujarat Gas also figured in the gainers' list.

The stock of Bharat Forge shot up by Rs 98.7 to close at Rs 1,419.30. The gains are on the back of the company's proposals to increase the limit on FII holdings in the company and go in for a five-to-one stock split. Volumes surged from 2,894 shares on Tuesday to 1.2 lakh shares on Wednesday.

The stock of Solectron Centum rose by Rs 10.75 to close at Rs 185.70. The company has bagged an order worth Rs 35 crore from the Department of Space for the supply of equipment.

Stocks that turned up on the losers' list included Tourism Finance Corporation, Mahindra Gesco, Zodiac Clothing, SB&T International, Rei Agro and EIH.

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Good show by banking, tech stocks