Sensex edges higher after sharp setback

Last Updated: Mon, Mar 12, 2012 06:49 hrs

The market, which opened on a buoyant note this morning thanks to a surprise 75 basis points cut in Cash Reserve Ratio (the central bank came out with this announcement last Friday evening), but retreated a bit subsequently, briefly slipped into negative territory amid high volatility a little while ago.

With a few blue chip stocks finding support at lower levels, the Sensex, which had tumbled to 17,494.65, has now edged up to 17,532.79, netting a modest gain of 29.55 points or 0.17%. Earlier, the barometer had vaulted nearly 270 points to 17,772.10 this morning.

The Nifty index of the National Stock Exchange is up 6 points or 0.12% at 5339.40, off the day's low of 5327.30. The Nifty touched a high of 5327.30 in early trades today.

According to the data released by the Commerce Ministry this morning, the factory output, as measured by the index of industrial production, grew by 6.8% in January as against 1.8% in December.

While manufacturing output grew by 8.5% in January, electricity generation rose by 3.2% and Mining output declined by 2.7%.

Information technology stocks are trading weak. Automobile, healthcare, power and metal stocks are well of their earlier high levels. A few top notch stocks from these sectors have even drifted down into negative territory due to selling pressure.

FMCG, oil, realty and bank stocks are trading mixed. Capital goods and consumer durables stocks are fairly steady. Midcap and smallcap stocks, which opened on a rousing note, have pared a significant portion of their gains now.

IT bellwether Infosys has eased to Rs 2793, recording a loss of around 2.3%. Tata Consultancy Services is down with a loss of 1.75% at Rs 1185, while Wipro, the other IT major in the Sensex, is up in positive territory at Rs 435.60 with a gain of around 0.8%.

Cipla has lost a little over 2%. Mahindra & Mahindra is down 1.6%, while NTPC, Hindalco, HDFC Bank, ONGC, Tata Motors and Maruti Suzuki are trading lower by 0.6% - 1.3%.

State Bank of India is trading firm with a strong gain of nearly 3.5%. Larsen & Toubro is up by a little over 2.5%. BHEL, ICICI Bank and Reliance Industries are up by around 1.5%. Sun Pharmaceuticals, Bajaj Auto, Hero Motocorp, GAIL India and Coal India are also trading notably higher.

United Breweries has zoomed to Rs 498, gaining more than 9%. Wockhardt has gained over 7%. JP Infratech, Gitanjali Gems, Voltas, United Spirits, Andhra Bank, Neyveli Lignite Corporation, Britannia Industries, Syndicate Bank, Havells India, Bharat Forge, Idea Cellular and Torrent Pharma have also risen sharply.

Redington India, NMDC, ACC, Glenmark Pharmaceuticals, Godrej Consumer Products, Adani Ports, Max India, Castrol India, Yes Bank, EIH, Mangalore Refineries & Petrochemicals and Sesa Goa are some of the prominent losers in BSE 'A' Group.

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