Tech Counters Turn South

Equities closed higher on the Bombay Stock Exchange (BSE) today, as institutions scooped up bargains, mildly cheered by reports that some drought-hit areas in the country had received rains this week.

The BSE sensex ended with a modest gain of 9.20 points at 2,985.01. Brokers said the market recovered on reports that the country's key soybean-growing areas had received rains, raising hopes of improved production.

"It was a sharp and swift recovery, which took most traders by surprise," a dealer with a domestic brokerage said.

However, on the National Stock Exchange (NSE), the S&P CNX Nifty settled with a small loss of 2.95 points at 954.75.

Cigarette major ITC rallied by 5.08 per cent to Rs 671.20 on reports that the Unit Trust of India may sell its 11.87 per cent equity stake in the company at Rs 1,500 per share, a premium of 126 per cent over the current market price, to any interested buyer.

FMCG major Hindustan Lever advanced 1.99 per cent to settle at Rs 171.50 on renewed institutional buying.

Meanwhile, cement stocks too bounced back. Cement stocks like ACC (up 3.44 per cent to Rs 135.35), Grasim (up 1.57 per cent to Rs 314.70) and L&T (up 0.70 per cent to Rs 158.35) ended higher on renewed buying after a recent fall from higher levels.

Even select pharma stocks like GlaxoSmithKline (up 0.48 per cent to Rs 377.70), Cipla (up 0.47 per cent to Rs 932.95), Ranbaxy Labs (up 0.37 per cent to Rs 857.55) and Dr Reddy's Labs (up 0.11 per cent to Rs 881.90) ended with modest gains.

However, technology stocks finished lower, trailing overnight losses on Wall Street. Infotech major Infosys Technologies shed 1.46 per cent to settle at Rs 3,012.60. Satyam Computer's shed 1.10 per cent at Rs 198.45 amid concerns that weakness in the US economy could affect the growth of the sector in the country.

Wipro settled 3.69 per cent lower at Rs 1,087.55, while media major Zee Telefilms (down 3.63 per cent to Rs 99.65) slipped below the Rs 100 mark on sustained selling pressure.