The Hindu Business Line : Profit booking stems bull run; markets end flat

The markets ended on a flat note after a day marked by volatile trading. The bulls were unable to keep up the strong upward momentum witnessed on Monday.

After the markets opened on a strong note, selling pressure was witnessed for the rest of the day. A majority of the sector indices, except for the IT index, ended weak.

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The domestic market refused to absorb positive vibes from the Asian markets even as a majority of them closed in the green. Information of net buying by FIIs on March 24 also failed to enthuse the local market, which succumbed to profit booking.

Overseas investors were net buyers to the tune of Rs 138 crore on March 24. Declining stocks outnumbered advancing stocks in the ratio of 2.4:1, reflecting the negative sentiment of Tuesday's trading session.

Sector focus

Metal stocks underwent some correction after reaching a high on Monday. SAIL declined 4.1 per cent to Rs 80.90. Jindal Saw, Madras Aluminium, Hindalco and Hindustan Zinc were raided by the bears and closed in the red.

IT stocks appeared to be the flavour of the day as they ruled firm till close of session. Apart from frontline stocks Infosys and Wipro, mid-cap players such as Zensar Technologies, Hexaware Technologies and Mphasis BFL saw buying interest and surged northward.

The capital goods indices failed to weather challenges from the bear and slipped 1.2 percent. While Alstom Projects lost over four per cent, Thermax, Bharat Earth Movers and Praj Industries also ended weak.

There were, however, a few exceptions such as Kalpataru Power Transmission and Bharat Bijlee, which made smart gains despite pessimism seen in the space.

Buzzing stocks

Hindustan Dorr-Oliver, a subsidiary of IVRCL Infrastructures, plans to split each share into five shares. The stock hit the upper circuit and later settled at Rs 813.6 - a gain of 4.9 per cent.

McDowell added Rs 41.5 or 6.1 per cent to close at Rs 723.4. Unitech, Renuka Sugar, United Western Bank and Kinetic Motor were some of the stocks that hit the upper circuit.

Stock-specific action

IL&FS Investment Managers rose 3.8 per cent to Rs 193.3. The company's board will meet on April 4 to consider issue of bonus shares and raise funds overseas.

Kirloskar Oil Engines gained Rs 7.9 to Rs 262.5. The company bought the stake of Kirloskar Group in a joint venture with Toyota Motor.

L&T has entered into a joint venture with the Kanoo Group of Saudi Arabia to sell electrical systems in the Saudi Arabian market.

Post-trading events

Towards close of market, Neyveli Lignite Corporation announced plans to spend Rs 5,560 crore to expand mines and power plants. The Government has approved the company's plan to raise its lignite-mining capacity.

Biocon has won a bid to acquire the US-based Nobex Corp. The two companies were developing an oral insulin drug. Biocon will pay $5 million (Rs 23 crore) for the acquisition.

Gujarat Fluorochemicals, Sakthi Sugars, Provogue Asian Electronics and Harrison Malayalam were prominent gainers among the Nifty constituents.

Berger Paints, Morarjee Realties and recently listed stocks Jagran Prakashan, Indo Tech Transformers, and PBA Infrastructure were key losers.