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Rediff.com  » Business » IT, banking help markets to close in the positive

IT, banking help markets to close in the positive

June 06, 2011 16:13 IST

BSEThe markets closed the first day of the week on a positive note where the Sensex gained 43 points at 18,420 and the Nifty added 15 points to close at 5,532 even thought the start was disappointing.

The broader markets had a muted day with the midcap index closing in the negative, down 0.2% and the smallcap index gaining marginally by 0.1% as compared to the BSE benchmark index, Sensex up 0.2%

Earlier the day the markets started lower due to weak global cues as Asian stocks fell in the aftermath of disappointing US job data.

Volatility was high in which the key benchmark indices skidded to one-week lows where the Sensex touched the day's low of 18,258, down 86 points from the day's opening.

However the markets gathered steam in the afternoon trades and moved into the positive due the gains in IT, health care and banking stocks.

Among the sectoral indices, metal and auto indices were the major laggards through the day.

Metal and mining stocks had a tough time as weak US economic data raised doubts over global economic recovery.

Hindalco Industries, Welcorp, Bhushan Steel, Sesa Goa and Jindal Saw down 1% each were the major losers.

The auto stocks too tumbled through the day on reports a government panel is expected to meet on Thursday, 9 June 2011, to decide on raising prices of diesel and cooking gas. Of the total 11 scrips listed, nine scrips dcelined and only two advanced.

The draggers for the day were Ashok Leyland, Bajaj Auto, Mahindra & Mahindra and Exide Industries which lost in the range of 1-2%.

On the global front, the Asian markets were in the red on account of disappointing US economic data. The major losers were Nikkei and Straits Times which lost 1% each.

Meanwhile, stock markets in Hong Kong, Seoul, Taiwan and Shanghai were all closed for holidays.

The US index futures data suggest that the Dow may fall by 25 points at the start.

The shares of media companies, New Delhi Television, UTV Software, Communications, TV Today and Sun TV Network have rallied on the bourses on acquisition buzz.

There was buzz that UTV will be going for stake sale and Disney might increase the stake in UTV.

Also, there was a talk that DE Shaw is planning to acquire stake in NDTV. UTV Software Communications scaled its 52 week high at Rs 748 and closed at Rs 730.

Fertiliser shares were also in limelight today as the early onset of monsoon this year may boost fertiliser demand.Chambal Fertilisers and Chemicals, National Fertilizers, Nagarjuna Fertilisers and Rashtriya Chemicals and Fertilizers added nearly 2% each.

BS Reporter in Mumbai
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