Return of stability

It has been a steady day for the markets. In what would soothe many a frayed nerve, post the volatility seen on the previous day, the markets have confined themselves to a narrow range of 100 points (on the Sensex). The market barometer is now quoting at 17446, higher by 66 points and the Nifty is at 5238, up 22 points. The mid-cap and small-cap indices are also up around a per cent each at 7098 and 9166 respectively.

Metal stocks are back in contention after suffering a two-day fall. Sterlite is the leading gainer among the Sensex 50 scrips, having strengthened by 2.8% at Rs 836 and Tata Steel is up 1.7% at Rs 635.

Banking stocks have received a boost after the latest data showed food price inflation eased in mid-April 2010. The food price index rose 16.61 per cent in the 12 months to April 17, lower than an annual rise of 17.65 per cent in the previous week.

Realty stocks are back in contention after the recent fall. Reliance Infra has added 0.9% at Rs 1123 and Jaiprakash Associates is up 0.7% at Rs 147. Unitech and Indiabulls Real Estate are up around 2% each.

And index heavyweight Reliance Industries (RIL) has risen 0.8% to Rs 1025 thanks to bargain hunting at lower levels. The stock had declined more than 5% post the disappointing Q4 numbers.

Hindustan Unilever, which had outperformed the markets during the previous day's correction, is seeing profit-bookingthis afternoon. The FMCG major is quoting at Rs 237, lower by 1.8%. Sun Pharma has shed 1.4% at Rs 1598 and Grasim has lost 1.3% at Rs 2766.

The market breadth is strong, with the advancing stocks outnumbering the declines in the ratio of 2:1.