Auto, tech Q4 numbers restrict Sensex gains at 33 pts

Reversing two days of losses, the benchmark BSE Sensex today edged up by 33 points to 27,564.66 on gains in banking stocks amid prevailing rate cut hopes even as the auto and tech shares plunged on poor earning numbers.

Trading in the negative zone for most part of the day, the index recovered on fag-end buying ahead of the May derivatives expiry.

"With the continued pressure of derivative contracts expiry, markets are in the consolidation mode. It has been a dismal quarter of earnings so far for the India Inc, adding to the spoiled sentiment," said Gaurav Jain, Director of Hem Securities.

After opening lower at 27,447.40 points, the Sensex continued to slide and touched the day's low of 27,363.72 points due to sustained selling.

However, the Sensex bounced back following emergence of value-buying particularly in banking stocks in the last half-an-hour of trading on hopes of rate cut by RBI.
The barometer settled higher by 33.25 points or 0.12 per cent  at 27,564.66.
The gauge had lost 426.09 points in the previous two sessions on lower-than-expected earnings from bluechip firms.

The wider 50-issue NSE Nifty, however, closed down by 4.75 points or 0.06 per cent at 8,334.60.

On Sensex, among banking stocks, Axis Bank rose by 2.26 per cent, HDFC Bank by 1.32 per cent and ICICI Bank by 1.1 per cent. State-run SBI gained 1.23 per cent.
Foreign portfolio investors bought shares worth Rs 114.81 crore yesterday and domestic institutional investors bought worth Rs 123.85 crore yesterday, as per provisional data.

"With just a day before near month derivative contracts expire, rollovers of futures are seen to be quite low, suggesting that traders are less likely to continue with the same bets in the June contracts too," said Anand James, Co Head Technical Research Desk of Geojit BNP Paribas.

In the overseas market, Asian stocks ended mixed as key indices in China, Japan and Taiwan firmed up by 0.25 per cent to 0.63 per cent, while  Hong Kong, Singapore and South Korea fell by 0.60 to 1.68 per cent.

Meanwhile, European markets were trading higher in their early trade amid the easing of tensions around Greek situation. The key benchmark indices in the UK, France and Germany rose in the range of 0.19 to 0.63 per cent.

Back home, of 30-share Sensex, 17 scrips finished higher.

"Initially indices started the day on a weak note and slipped down further following disappointing results by Tata Motors and Tech Mahindra dented the confidence of investors over the market, but ended slightly higher on fag-end buying from operators," said Jignesh Chaudhary, Head Of Research at Veracity Broking Services.

BHEL was the biggest gainer on the Sensex with a rise of 3.34 per cent, followed by ONGC (2.70 pc), Axis Bank (2.26 pc), Coal India (2.11 pc), Bharti Airtel (1.91 pc), NTPC (1.66 pc), HDFC Bank 1.32 (pc), SBI (1.23 pc), ITC (1.10 pc), ICICI Bank (1.10 pc), Tata Power (1.00 pc) and L&T (0.96 pc).

However, Tata Motors fell by 5.12 per cent, followed by M&M (2.80 pc), Infosys (2.00 pc), Sun Pharma (1.97 pc), GAIL (1.84 pc), Vedanta (1.69 pc) and Tata Steel (1.37 pc).

Among BSE sectoral indices, auto fell by 2.11 per cent, IT by 1.88 per cent and teck 1.42 per cent, while bankex rose 1.19 per cent, followed by oil&gas 0.97 per cent, consumer durable 0.95 per cent and power 0.58 per cent.

Total market breadth continued to show negative trend as 1,435 stocks closed lower, 1,196 finished higher and 109 ruled steady. The total turnover rose further to Rs 2,769.66 crore from Rs 2,436.33 crore yesterday.