The Hindu Business Line : Sensex loses out from positive track midway

As the Railway Budget did not throw up any surprises, the Sensex closed 43.29 points (or 0.42 per cent) lower at 10,200.76 points. The S&P CNX Nifty also shed 12 points (0.39 per cent) to close at 3,050.05.

Though the Nifty drifted down, the total market capitalisation at the NSE touched a record level at Rs 24.97 lakh crore during the day's trading. The market breadth continued to be weak.

Sector focus

The banking sector caught the fancy of the markets during the day's trading, with several public sector banks such as Bank of India, Canara Bank, Andhra Bank, Indian Overseas Bank and Bank of Baroda, among others attracting heightened market interest.

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The cement sector also hogged investor attention, with select stocks such as Gujarat Ambuja Cement, Ultratech Cemco, and Madras Cements gaining during the day.

Other sectors that attracted trading activity were engineering and petrochemicals.

The sector that had a mixed bag was telecom, following the lowering of the access deficit charge by the telecom regulator. Stocks as MTNL and VSNL inched up, but Bharti retreated marginally.

The sectors that were out of favour were technology, pharma, auto and tea.

Select tea stocks that had run up sharply such as Dhunseri Tea, Warren Tea and Bengal Tea witnessed selling pressure.

Buzzing stock

Kernex Microsystems was the stock that rocked during the day's trading, with the trading volumes surging 12-fold. Call it the rub-off effect of the Railway Budget, the stock gained 19.2 per cent to close at Rs 274.95.

Event specific action

* Reliance Energy Ventures, second of the four demerged entities from Reliance Industries, listed on the bourses. The stock opened at Rs 45.70 and closed for the day at Rs 43.65.

* Alfa Laval and SKF India shed about 7 per cent each during the day's trading in the light of a poor quarterly/ yearly performance for the period ended December 31, 2005

* Following the decision of the board of Greenply Industries to consider a preferential issue of equity to promoters and financial investors and redeem preference shares, the stock moved up by 1 per cent to close at Rs 126.35.

* The Sayaji Hotels stock attracted heavy trading volumes and the stock went up by 2 per cent in the light of the preferential equity to be allotted by the board at a price of Rs 50 in early March.

* Dynemic Products, that debuted on Thursday at Rs 28.2 as against an offer price of Rs 35, closed for the day at Rs 32.90 on heightened trading volumes.

* Inox Leisure, the other stock that listed on the same day, marched up by 7 per cent to close at Rs186.85, on relatively lower trading volumes.