The Hindu Business Line : Banking, IT stocks prop up Sensex

Banking stocks were in the limelight, with HDFC Bank and ICICI Bank propping up the indices. The BSE Sensex rose 0.3 per cent or 23.1 points to close at 6,781.25 points. The S&P CNX Nifty ended the day higher by 5.35 points at 2,098.15 points.

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The markets traded in a range-bound manner for a greater part of the trading session. Beginning on a weak note at 6,756.6 points, the Sensex traded at a narrow band in the early trade. A bout of buying activity in index heavyweights subsequently drove it to a high of 6,795 points. The index, however, lost some ground towards the last half hour of the session. Nineteen out of the thirty stocks constituting the Sensex advanced. The stock of HDFC Bank led gains, soaring 6.5 per cent to close at Rs 589. The stocks of ICICI Bank, HDFC, Infosys and Wipro were the other key gainers. ITC, Hindustan Lever and Tata Steel were among the stocks that came under selling pressure and capped the day's gains. ITC shed Rs 31.2 to close at Rs 1550.

Banking stocks continued to be in favour. The BSE Bankex appreciated by about three per cent. Prominent gainers include J&K Bank, Punjab National Bank, Oriental Bank and Bank of India. Kotak Mahindra Bank was also a notable gainer. The stock put on 1.9 per cent or Rs 7.25 to close at Rs 397.7 after declaring its fourth quarter results and has announced bonus shares. The bank is to offer its shareholders three shares for every two held.

Several stocks were in the limelight on Tuesday, on the back of news and earnings announcements. The stocks of SRF, Khaitan India, Saksoft and Amara Raja Batteries were strong gainers. SRF gained 21 per cent to close at Rs 168.15.

Amara Raja Batteries appreciated by 7.1 per cent to close at Rs 129.3 after the company said that it would be exclusive supplier to Maruti for its latest "Swift" model.

Maruti Udyog gained Rs 2.3 to close at Rs 457.3. This gain was however on the back of the carmaker's decision to increase the price of "Swift", by as much as Rs 10,000.

The stock of Ind-Swift gained smartly by Rs 5.4 or 8.5 per cent to close at Rs 68.8 on the back of its Rs 100 crore expansion plan.

A prominent loser on Tuesday's trading was the stock of Indian Hotels. The owner of the Taj chain of hotels had turned in a strong performance in FY05, with its profits growing by more than 70 per cent over the previous year. The stock, however, fell for the second day in a row, declining by Rs 10.6 to close at Rs 651.10.

The stock of Williamson Tea fell by Rs 6.55 to close at Rs 146.3. McLeod Russel, a unit of the B.M. Khaitan Group, is to buy a 70 per cent stake in the bulk tea player for Rs 170 per share. It ill also be making an open offer for an additional 20 per cent stake in the company.

The stock of Apollo Tyres rose by Rs 3.5 to close at Rs 282.95 on the back of its announcement of fourth quarter results.

Other prominent gainers include the stocks of Gokaldas Exports, Container Corporation, Praj Industries and Tata Tea. Stocks that were out of favour include Nagarjuna Construction, Jaypee Hotels, Pantaloon Retail, Super Spinning and Kalpataru Power, to name a few.

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Banking, IT stocks prop up Sensex