The Hindu Business Line : Infosys, HDFC, Reliance lead market fall

The markets snapped their four-day gaining streak to close in the red. A volatile session in the morning hours was followed by a selling spree as the markets shed about 0.7 per cent. Led by declines in Infosys, HDFC, Reliance Industries and Hindustan Lever the Sensex shed 89 points to close at 12,366. The midcap and smallcap indices on the BSE gained even as the benchmark indices shed value, reflecting the mixed sentiment that prevailed.

Buzzing Stocks

Rama Newsprint continued its gaining streak — the stock gained yet another 20 per cent to close at Rs 47.7. Teledata Informatics, which had been building up volumes since Thursday, was among the prominent ones to hit the upper circuit filter. Others that hit the upper circuit filter included NESCO and GMR Industries.

The BSE Metals index continued its gaining streak into the sixth straight day buoyed by gains in the steel sector; the index added 1 per cent on the back of a 2 per cent gain on Friday. Reports of steel majors raising prices on galvanised steel and cold-rolled steel appear to have driven interest in the steel space. Sesa Goa, Jindal Stainless and Jindal SAW contributed to a large part of the rally. Non-ferrous stocks such as Sterlite Industries and Hindustan Zinc also chipped in with gains of 2.2 and 1.3 per cent respectively. Shree Precoated, Bhushan Steel, Uttam Galva, Binani Industries and Ferro Alloys Corporation were among the top gainers in the steel space.

Sector Watch

A negative sentiment accompanied by low volumes prevailed in the sugar space. Rajshree Sugar, Dhampur Sugar, Simbhaoli Sugar, Ugar Sugar and DCM Sugar were among the top losers. Frontline stocks Triveni Engineering, Balrampur Chini and EID Parry also shed value.

A mixed sentiment prevailed in the shipping space. While midcaps Varun Shipping and Mercator Lines moved northwards, larger players Shipping Corporation and GE Shipping closed in the red. Driven by buying interest, Dredging Corporation closed with a 5 per cent gain.

Event-specific action

Despite a strong opening gain of about 2 per cent Pantaloon Retail closed for the day in the red as profit booking took centre-stage. The markets appeared to be unenthused by the retail chain's fourth quarter results. Pantaloon Retail reported a 47 per cent earnings growth backed by a 56 per cent revenue growth. The stock shed about 2 per cent to close at Rs 1,853.

Nicholas Piramal received Rs 17.8 crore for the commercialisation of the Boots OTC brands in India, which has been taken over by Reckitt Benckiser. Nicholas Piramal also acquired the remaining 51 per cent stake in Boots Piramal Healthcare from its JV partner The Boots Company after Alliance Boots (holding company of The Boots Company) decided to quit its OTC healthcare business globally.

Prominent gainers/ losers

Lupin, Mphasis BFL, Polaris, LIC Housing Finance, IDBI, JP Associates, TVS Motors, ING Vysya Bank and Reliance Capital were among the top gainers on the Nifty Junior.

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Top losers included Kotak Mahindra Raymond, Pfizer, IDFC, Container Corporation, Canara Bank, Bank of Baroda, Aventis and Cadila Healthcare.