ON Tuesday, a cautious mood prevailed in the early part of the trading session with most of the indices moving in the negative territory.
Net selling of about Rs 2,100 crore by FIIs appears to have caused the downtrend in the markets in the early part of the session. This comes on the back of FIIs pumping in about Rs 2,000 crore in the earlier sessions this month.
The markets were range-bound. However, buying interest towards the close contributed to the gains.
After opening with a marginal gain of 15 points, the BSE Sensex moved within a narrow range of 47 points. The index moved for most part of the day in the positive territory. Late buying contributed to the day's gain of 27.5 points.
The S&P CNX Nifty opened on a cautious note. Within hours of opening, the index touched the day's low of 2098.7 points. Later, it moved erratically, dipping twice into the negative territory.
Buying interest towards the end of the session lifted the market sentiment, with the Nifty managing to close with a gain 0.46 per cent at 2112.35 points.
Banking, media and steel stocks were in the limelight, with majority of them recording gains.
Accompanied by a substantial jump in volumes, IndusInd Bank recorded a sharp gain. The volumes were up nearly eight fold at 26 lakh shares. It flared up by 7.69 per cent to close at Rs 72.85.
Other gainers in the private sector were Federal Bank, Jammu & Kashmir Bank, Bank of Rajasthan, Centurion Bank and ING Vysya Bank.
The gainers in the public sector included Allahabad Bank, Canara Bank, Union Bank, Bank of Baroda and Punjab National Bank. However, Corporation Bank bucked the trend; it lost 3.49 per cent to close at Rs 360.
Media stocks attracted buying interest on expectations of an increase in the FDI limit. Crest Animation, Creative Eye, TV Today, Shri Adhikari Bros, Padmalaya Telefilms and Pritish Nandy rose more than 3 per cent. Accompanied by a sharp jump in volumes, almost 19-fold, NDTV increased 6 per cent to close at Rs 200.
After sustained losses in the recent trading session, the metal index on the BSE gained 0.76 per cent to close above the 5300-mark. The top gainers were Jindal Stainless, Man Industries, Maharashtra Seamless, Sesa Goa, Bhushan Steel Strips, Jindal Saw and Welspun Gujarat.
Mahindra & Mahindra announced a bonus offer at 1:1. It also came out with plans to set up a joint venture with International Trucks & Engine Corp of the US. The joint venture, at Rs 400 crore, is to manufacture trucks and buses in India. M&M plans to hive off its LCV business to the joint venture. Despite the buying interest in the latter hours of trade, it failed to salvage the opening gains. It closed with a modest gain of 0.42 per cent.
Among the other automobile stocks, Bajaj Auto was the only other visible gainer, which closed higher by more than 1 per cent.
Maruti Udyog, TVS Motors, Hindustan Motors and Tata Motors dragged the BSE Auto index into the red.
Rajasthan Spinning's proposal to venture into manufacturing towels and home textiles propelled the stock upwards. It gained 3.7 per cent to end the session at Rs 127.6.
A mixed trend prevailed in the textile sector with Bombay Dyeing, Raymond, Welspun, Patspin and Super Spinning gaining. Alok Industries, Indian Rayon, Arvind Mills and Mahavir Spinning closed lower.
Prominent gainers among the Nifty constituents were Dabur, ICICI Bank, Bharti Tele-Ventures, HDFC Bank, Reliance Energy and GAIL.
Notable losers in the Nifty were VSNL, Zee Telefilms, Shipping Corporation, BPCL, HPCL, HDFC, HLL and Colgate.