The Hindu Business Line : Banking, auto sectors shine; IT suffers

ON Tuesday, with bulls taking charge in the post-lunch session, the bellwether indices at one stage were down more than one per cent. Gains in the banking and auto sectors managed to stave off the losses.

The Sensex ended flat losing only a marginal 2.79 points, the S&P CNX Nifty recorded a gain of 0.09 per cent.

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Higher earnings from increasing credit offtake appear to be a never ending story as most of the stocks in the sector led by Bank of Baroda, Bank of India, ICICI Bank and Canara Bank scored marked gains of more than two per cent.

In the auto sector, it was the turn of the four-wheeler majors to record sharp gains. Tata Motors, Hindustan Motors and Maruti Udyog recorded gains of more than two per cent.

Tech stocks took a beating. Infosys led its peers downhill as the IT-index on the BSE declined 2.74 per cent. Prominent losers were TCS, Patni Computers, SSI and Aptech.

Infosys, which reported a 37 per cent growth in earnings for the first quarter, appeared to have failed in raising market expectations. The bears took control of the counter browbeating it by 4.12 per cent.

Kinetic Motor's plans to come out with a 2:1 rights offering at Rs 40 did not have much of an impact, as investors already appeared to have factored in on the proposal. It opened with a marginal gain at Rs 60, and closed lower by 1.83 per cent.

ITC opened lower at Rs 1,698.9, however, its plans to set up a paper plant appear to have created interest among investors, which propelled the stock to a 52-week high of Rs 1,775. Driven by the negative sentiment that prevailed in the market, it lost some of its sheen to close at Rs 1743.85 recording a gain of 2.23 per cent.

Hindalco, which opened on a strong note, driven by plans of 10:1 stock split touched a high of Rs 1,272, Rs 37 higher than Mondays' close. Failing to sustain the pace the stock dipped by 0.38 per cent in a flat market.

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