The Hindu Business Line : Breadth of markets clearly in favour of declines

Taking cues from global markets, Indian equity markets opened strong with a gain of 100 points. However, profit-booking at higher levels dragged the benchmark Sensex below the previous close. With strong support at lower levels by bulls, despite volatile movements through out the trading session on Tuesday, the markets managed to close with the gain for the third consecutive day.

Sensex closed at all-time high of 13425.50 by adding 26.5 points to the previous close. Nifty managed to add 7.15 points to 3865.9. However, the mid and small-cap indices lost 43 and 60 points, respectively. The breadth of the markets was clearly in favour of declines. Against 933 advanced 1,619 shares ended in red. The Nasdaq closing at six-year high, boosted the sentiment for IT stocks and most of them added values. Banking sector was the other prominent gainer on a flat trading day.

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Metals continue to bear the brunt of the markets for the second straight day. Sectors such as consumer durables and FMCG shed flab along with cements.

Buzzing stocks

TCS spurred 3 per cent to Rs 1106.25 on the back of the news that the company won a $100-million order from Kimberly Clark. Other large cap gainers were ONGC, Bharti Airtel and Larsen & Toubro, which announced the tie-up with Mitsubishi Heavy Industries managed to gain marginally. In the mid-cap space, Atul surged 20 per cent, Allcargo added Rs 105 to close the day at Rs 942; other prominent gainers in the BSE were Divis Laboratories, Eveready Industries, Balaji Tele and Bajaj Electrical.

Sector Focus

The BSE IT index was the biggest gainer among the sectoral indices. The top gainer was Hexaware, which added 3.15 per cent followed by Infosys, Mphasis BFL, Satyam Computer, Wipro and Patni Computer. The ones that bucked the trend to close in negative were i-flex Solutions and Financial Technologies.

Banking sectoral indices gained 1 per cent. Most of the private sector stocks were back in action. Kotak Bank gained 4 per cent, UTI Bank added Rs 22 to close at Rs 473.75. ICICI Bank and HDFC Bank were the other gainers. State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India and Canara Bank were the prominent losers in the public sector space.

Metals continue to crack and it was the biggest loser among the sectoral indices. Hindustan Zinc, which announced a cut in prices, has come in for a selling, the stock lost 4.8 per cent to close at Rs 861.2. Other prominent losers were Hindalco, SAIL, Tata Steel and Jindal Stainless Steel. The few that bucked the trend to close in green were Nalco, Sesa Goa and Jindal Saw.

Colgate Palmolive, United Spirits, Dabur India, Hindustan Lever, ITC and Marico were among the losers in the FMCG space. Tata Tea and Godrej Consumer were the gainers from this sector.

Gainers and Losers

Hindustan Petroleum, Sun Pharma, IPCL, BPCL, Corporation Bank, Asian Paints and Indian Hotels were the prominent gainers on the NSE. VSNL, M& M, Siemens, Suzlon Energy and Zee Telefilms were among the losers.