The Hindu Business Line : Market ends flat on late-hour selling

The Sensex gained 7.7 points to 8,815.5. After a cautious start, markets picked momentum to reach an intra-day high of 8,915.1. Following a gain of over 1 per cent during the day, the Sensitive Index witnessed bear carnage similar to that of Monday. In the broader markets, the S&P CNX Nifty added just 1.8 points to 2,662.3.

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In the global markets, Asian stocks ended in the red following a bounce back in crude oil prices. Net buying by overseas investors to the extent of Rs 515 crore on December 2 failed to lift the local market sentiment.

In the basket of BSE 30 (Sensex) 17 stocks witnessed a decline. Among the heavyweight stocks ONGC was the biggest gainer. The stock piled Rs 28 to Rs 1,052.3. Expectation of increase in earnings on rebounding of oil prices may have spurred the stock. Reliance Energy and Tata Power were other energy stocks that closed with gains. Grasim Industries, Gujarat Ambuja Cements, Bharti Tele-Ventures and Bharat Heavy Electricals led the pack of losers.

Mid-cap indices in the BSE and NSE ended flat. The space however saw action in select stocks. Godrej Industries, DSP Merrill Lynch and Morarjee Realties saw intense buying interest. DSP Merrill Lynch added Rs 123.8 to Rs 1,797.2 after reports that Merrill Lynch & Co is planning to increase its stake in the Indian company.

In the capital goods and engineering sector, Larsen & Toubro added Rs 9 to Rs 1,728.6. The company expects operating margins from its engineering and construction business to expand. Alfa Laval, Asian Electronics and ABG Heavy Industries were other gainers in the sector. ABB succumbed to selling pressures and declined 2 per cent to Rs 1,891.2. Amforge Industries and Numeric Power Systems were key losers in the small-cap space.

Pharma stocks ended on a poor note. Front line stocks Ranbaxy, Dr Reddy's Laboratories and Biocon closed in the red. Wockhardt and Natco Pharma were other key losers. Matrix Laboratories saw some action after the company's announcement to acquire a 55 per cent stake in biotechnology company, Concord Biotech of Gujarat. The stock climbed 3.3 per cent to Rs 204.6. Merck, Lupin and Aurobindo Pharmaceuticals joined the northbound journey.

The IT space saw heightened activity in small and mid-cap stocks. PCS Technology, Nucleus Software, Subex Systems and Mphasis BFL ended the day in style while the bears raided GTL, Ramco Systems and Sonata Software.

Metal stocks lost sheen and witnessed heavy selling. Tata Steel, SAIL, Mukand and Kalyani Steel ruled weak. Monnet Ispat, PSL, Sesa Goa and Hindustan Zinc however bucked the trend and closed with gains.

Construction stocks were a mixed bag. Madhucon Projects was in the limelight throughout the day. The stock piled 6.1 per cent to Rs 214.9. The stock has been on an uptrend since its stock split. Hindustan Construction made marginal gains while Nagarjuna Construction and Gammon India stayed out of rally.

In the energy sector even as ONGC surged, Reliance Industries lost 0.5 per cent to Rs 837 after a court deferred a ruling on the company's reorganisation plan. Gujarat Gas Company also managed to move northward while Kochi Refineries, IBP, IOC and Bharat Petroleum lost ground and ended lower.

Media stocks lost glamour on Tuesday. NDTV, Television Eighteen, TV Today and Balaji Telefilms declined.

Piramyd Retail made its trading debut in the BSE. The stock rose 9.7 per cent to Rs 131.6. The company has raised Rs 108 crore from the public offer.

Prominent gainers in the Nifty constituents include VSNL, HDFC, Raymond and Corporation Bank. Hindustan Petroleum, Wheels India and Praj Industries were conspicuous losers.

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