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Sensex ends flat amid mixed trends

The market ended flat on Wednesday amid mixed trends, recovering after a subdued opening on selective buying in defensive sector stocks. After remaining in the red for the better part of the day, the BSE 30-share Sensitive Index (Sensex) settled with a modest loss of 5.57 points to 3,405.38.

While selective Old Economy and defensive sector stocks gained ground on institutional buying, New Economy stocks lost ground on fresh selling pressure after an early rally on Wall Street fizzled out on Tuesday. A promising business outlook from Oracle failed to convince investors that corporate profits have bottomed out.

The BSE Sensex opened flat at 3,410.10 today. Selling pressure in New Economy stocks pulled down the BSE Sensex below the 3,400-mark immediately to touch the day's low of 3,369.31. The market moved in the 3,380-3,400-range range for the better part of the day. It recovered towards the close of the session. The Sensex touched the day's high of 3,420.43 before closing at 3,406.65, losing 4.90 points or 0.14% from its previous close.

The NSE S & P CNX Nifty Index was down 1 point to 1,095.65.

New Economy stocks were the worst hit.

Media major Zee Telefilms (down 7.96% to Rs 105.85) came off on profit booking after recent gains. Over 42 lakh Zee shares were traded on BSE today.

Tech pivotals Satyam Computer (down 4.31% to Rs 185.25), Infosys Technologies (down 3.18% to Rs 3,352) and NIIT (down 2.66% to Rs 346.45) lost ground on profit booking on hopes of a further weakness in the tech-heavy Nasdaq on Wednesday.

Selling was seen in heavyweight pivotals like ITC (down 1.42% to Rs 780), Reliance Industries (down 0.78% to Rs 344.70) and Reliance Petroleum (down 1.02% to Rs 48.55).

Selling was seen in Old Economy pivotals like Bajaj Auto (down 2.01% to Rs 263.30), Tata Steel (down 1.47% to Rs 123.75), ICICI (down 1.20% to Rs 70) and Bhel (down 0.51% to Rs 165.10).

On the other hand, FMCG heavyweight Hindustan Lever (up 2.94% to Rs 206.35) gained further ground on institutional buying. The stock has been attracting fresh institutional interest in the hope of a normal monsoon.

Banking major State Bank of India (up 2.22% to Rs 225.40) gained ground on talks of a cut in bank rate. The banking major is scheduled to announce its Q4 results tomorrow.

BSES (up 4.15% to Rs 199.50) was the biggest gainer among Sensex stocks on continued buying interest.

Buying was seen in pharmaceutical pivotals like Ranbaxy Laboratories (up 0.90% to Rs 450.05, Dr Reddy's Laboratories (up 0.61% to Rs 1,460) and Cipla (up 0.30% to Rs 1,089).

Buying was seen on Old Economy stocks like MTNL, HPCL, M &M, Telco and Castrol.

Among non-Sensex tech stocks, Mastek (up 5.51% to Rs 112) bounced back from an intra-day low of Rs 102 on talks that an European tech major is planning to take a stake in the company.

SSI (up 2.55% to Rs 313.50) also recovered on institutional bargain hunting. Over 23 lakh SSI shares traded on BSE today.

Buying was seen in tech stocks like i-flex Solutions, Geometric Software, PSI Data Systems, Soffia Software, Ramco Systems, Mphasis BFL, Tata Infotech and CMC.

On the other hand, counters like VisualSoft, Nucleus Software, Kale Consultants, Aptech, Subex Systems, DSQ Software, Fujitsu ICIM, Digital Equipment, Pentasoft Technologies, Trigyn Technologies, Mascon Global, Information Technologies, HCL Technologies, Wipro, Silverline Technologies, R S Software, Infotech Enterprises, Mascot Systems and Rolta India were weak.

Among telecom stocks, Global Tele-Systems (Rs 157.95) and HFCL (Rs 93.65) ended at their 8% lower limits on profit booking after recent gains.

Krone Communications (Rs 122.65) and Mobile Telecom (Rs 20.85) hit the 8% lower limit of the circuit breaker.

Selling was seen in telecom-related stocks like Goldstone Technologies, Usha Beltron, Punjab Communications, Finolex Cables, Birla Ericsson, Shyam Telecom, Framatome Connectors, VSNL, Surana Telecom, Nelco and Tata Telecom.

Media stocks like Tips Industries, Crest Communications, Vision Techno, Cinevista Communications, Pentamedia Graphics, Pritish Nandy Communications, Creative Eye, Padmalaya Telefilms, Jain Studios, Adlabs Films and TV 18 lost ground on profit booking.

On the other hand, Balaji Telefilms recovered from a low of Rs 176 to Rs 194.65 before settling at Rs 187.25, gaining 1.85% over its previous close. Local institutions are believed to be active on the Balaji counter.

Mid-Day Multimedia, Mukta Arts, Saregama India and G V Films also settled in the positive zone.

Among non-Sensex pharma stocks, Abbott Laboratories (Rs 164.15) was frozen at the 8% upper limit of circuit breaker.

Selective buying was seen in pharmaceutical stocks like Lupin Laboratories, Morepen Laboratories, Rhone Poulenc, Sun Pharma, Ranbaxy Laboratories, Torrent Pharma, Suven Pharma, Alembic, Wockhardt, Hoechst Marion Roussel, Knoll Pharma, Pfizer and E.Merck.

Among FMCG counters, Tata Tea (down 6.95% to Rs 203.60) lost ground on a poor FY 2001 show. Tata Tea posted FY 2001 results after market hours on Tuesday. For the year ended 31 March 2001, the tea major recorded a 19.59% drop in net profit to Rs 100.21 crore (Rs 124.63 crore) on sales of Rs 891.16 crore (Rs 974.49 crore).

Others like Bausch & Lomb, Dabur India, Bata India, Reckitt Benckiser, Gillette India and Britannia Industries also lost ground.

Banking stocks like HDFC Bank, ICICI Bank, Oriental Bank of Commerce, Bank of Rajasthan, Bank of Baroda, Global Trust Bank, Bank of Punjab, Corporation Bank and UTI Bank were steady on hopes of a cut in bank rate.

Among side counters, Bayer India (Rs 652) and Colour Chem (Rs 51.05) hit the 8% upper limit of the circuit breaker.

D-Link India (Rs 207) hit the 8% lower limit of the circuit breaker.

Source: www.capitalmarket.com

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