Markets pullback: Sensex ends above 6150

MUMBAI, JANUARY 25 (AGHENCIES)The markets bounced back from lower levels following fresh buying interest in the bank, metal, auto, FMCG, technology, and oil stocks.

The Sensex closed up 56.55 points at 6162.98, bouncing back from an intra-day low of 6069.33. The Nifty closed up 22.85 points at 1931.85. This is the fourth time the Nifty has bounced back from the 1900 levels since January.

After today’s trading the market breadth remained positive . Bank & metal shares were firm . Auto stocks rallied.

The market breadth was positive as several midcap stocks gained. About 1339 shares advanced, 895 shares declined, and 76 shares remained unchanged.

The market sentiment is not looking good despite some robust results as FII inflows have slowed down and global markets are depressed. Analysts said the direction of the market would become clear only after the Nifty breaks out of the 1900-1950 range.

There was high turnover & rollover seen in the futures segment. Over 52% rollover was completed in futures. The Nifty futures rollover was over 47% of positions. FIIs net buy Rs 73.83 crore (Rs 738 million) in F&O on Monday. They rolled Rs 2166 crore (Rs 21.66 billion) to February on Monday and the total FII open interest was at Rs 9764.54 crore (Rs 97.64 billion).

Analysts said, sectors related to infrastructure such as cement and engineering capital goods will lead the pre-budget rally around mid-February.

The Bankex outperformed the other indices. It closed up 2.5% at 3438.91 as most of the private as well as the PSU banks bounced back after remaining depressed earlier during the day.

The BSE Metal Index closed up 2.21% at 5791.20 as most of the steel and aluminium stocks firmed up. Sail, Tisco, Ispat Industries, Nalco and most of the midcap metal shares gained.

The BSE Auto Index closed up 1.49% at 2661.68 as Ashok Leyland, Hero Honda, Maruti, Bajaj Auto, M&M, and Tata Motors rallied. Ashok Leyland announced good Q3 numbers. Santosh Mohan Dev has said the Maruti and BHEL stake sale are to take place next year.

Among FMCG shares, ITC, HLL, Tata Tea, and Dabur gained. Dabur is to buyout Balsara in a deal valued bet Rs 175-200 crore.

Technology stocks also bounced back and ended with modest gains after witnessing selling pressure on the back of the weakness in the US markets.

Some gains were also seen in the oil and gas stocks inspite of crude oil prices firming up.

Most of the cement, media, pharma, and telecom shares closed mixed. Among power shares Tata Power ended lower on disappointing quarterly results.