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Nath Balakrishnan

SNAPPING a two-day losing streak, the BSE Sensex moved northward, buoyed by buying in frontline technology counters such as Infosys Technologies, Satyam Computer and HCL Technologies. The positive sentiment in tech stocks was also due to the strong overnight closure on the Nasdaq, which moved up smartly on hopes that Microsoft would make a huge dividend payout to shareholders. As a consequence, the Sensex gained 17.15 points to close at 3,629.68 points, off its day's high of 3,645.64 points.

The Nifty moved up by 5.35 points to close at 1,145.90 points, after having scaled an intra-day peak of 1,153.15 points. The total traded value on the Nifty stood at about Rs 3,100 crore compared to about Rs 2,700 crore witnessed on Monday.

Tech stocks within the Sensex ruled firm, ahead of the declaration of quarterly numbers by bellwether Infosys Technologies, due on Thursday. The results would be crucial not only in terms of providing an indication of what to expect from other companies in the IT sector, but also in broadly determining the direction of market movement. Infosys showed none of those pre-results jitters as it rode up by close to Rs 150 to end at Rs 3,241.25.

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The other tech stock in the Sensex also mirrored the upward movement seen in Infosys and ended the day higher. Satyam Computer climbed by Rs 4.90 to settle at Rs 192.05 on trading volumes of about 3.1 million shares. HCL Technologies leapt by Rs 9.10 to end the day at Rs 155.50 on trading volumes of about 0.4 million shares.

Other prominent gainers on the Sensex included ITC, which gained close to Rs 10 to end at Rs 775; Larsen & Toubro, which closed at Rs 262.45 with a gain of Rs 8.10; and Hindalco, which put on about Rs 22 to end at Rs 767. Zee Telefilms posted a rise of Rs 3.75 to close at Rs 99.05 in spite of news that the implementation of the Conditional Access System (CAS) is likely to be deferred. The CAS is considered to be more beneficial for broadcasters such as Zee.

Moving outside the Sensex, the stock of telecom-software maker Hughes Software vaulted by Rs 9.50 to end at Rs 229.75 on trading volumes of about five lakh shares. The company had announced, after the markets closed on Monday, the buyout of Bangalore-based Tenet Technologies for a consideration of Rs 18 crore.

Revathi Equipment was another prominent gainer after it announced that its board would consider a buyback at the company's AGM to be held on July 11. The stock surged by Rs 9.40, or about 7 per cent, to park itself at Rs 142.35.

The stock of pharma major Wockhardt received a boost after it announced that it was acquiring the UK-based CP Pharmaceuticals along with its subsidiaries. This acquisition would provide Wockhardt with a strong foothold in the UK market and provide a further momentum to its exports to Europe. The stock moved up by Rs 17.70 to end the day at Rs 401.65 on trading volumes of 0.1 million shares.

It was a sweet-and-sour day for stocks in the sugar sector that had a dream run at the markets on Monday. Dhampur Sugar, one of the major gainers during Monday's trade, found the going bitter as it reversed direction and shed about 8 per cent to settle at Rs 20.45. Balrampur Chini, which put on about 12 per cent on Monday, slid by close to Rs 9 to finish at Rs 146.40.

However, Sakthi Sugars bucked the negative trend and ended the day higher at Rs 13.20.

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