Sensex rebounds after setback

Last Updated: Thu, Feb 28, 2013 07:44 hrs
People walk pass BSE building in Mumbai

The market, which plunged into negative territory even as the finance minister was concluding his budget speech, has rebounded now, thanks to resumption of buying in some front line stocks from realty, information technology, FMCG and consumer durables sectors.

Automobile, capital goods and healthcare stocks are trading mixed. Metal, power and oil stocks are also turning in a mixed performance, while bank stocks are slightly weak.

The Sensex, which tumbled to around 19,028 in early afternoon trade, from the day's high of 19,322.28, is currently up 55.72 points or 0.29% at 19,208.13. The Nifty is up 13.05 points or 0.23% at 5809.95, off the day's low of 5756.40.

Consumer durables stocks Rajesh Exports, Titan Industries, VIP Industries and Whirlpool are trading sharply higher.

Realty stocks DLF, Anant Raj Industries, Sobha Developers and Unitech are trading firm, with the proposal to allow additional interest deduction on housing loans valued up to Rs 25 lakhs, triggering some buying in that space.

Coal India is trading 2.7% up following the finance minister proposing to encourage public-private partnership model with Coal India to boost output.

Tata Consultancy Services, Jaiprakash Associates, HDFC Bank, Kotak Bank, Cipla, Wipro, Sun Pharmaceutical Industries, HCL Technologies, Ultratech Cement, ITC and Bharti Airtel are trading notably higher.

Meanwhile, ICICI Bank, State Bank of India, Power Grid Corporation, Lupin, IDFC, Cairn India, Jindal Steel & Power, Tata Steel, Axis Bank and Hindalco are down with sharp to moderate losses.

The proposal to hike duties on high end cars is a negative for carmakers. Automobile stocks Maruti Suzuki, Mahindra & Mahindra and Tata Motors are all trading notably lower. However, shares of two wheeler makers Bajaj Auto and Hero Motocorp are faring relatively better, seeing some modestly bright spells in positive territory.

With the budget proposing higher allocation for defence expenditure, shares of Bharat Earth Movers and Bharat Electronics saw some strong buying this afternoon.

The reduction in Securities Transaction Tax triggered some buying in shares of brokerage firms Motilal Oswal, Indiabulls Financial Services, Religare Enterprises and India Infoline, but due to overall weak sentiment, these stocks have retreated from their higher levels subsequently.

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