Markets stay range-bound as Sensex gains seven points

Our Markets Bureau

Mumbai, Dec 10: Begining the new week on a cautious note, stock markets remained rangebound on Monday and managed to post marginal gains with majority of players shifting their attention from new economy to defensive old economy stocks.

The benchmark indices posted nominal gains as the BSE Sensex gained by 7 points, while the S&P CNX Nifty was up by 3 points.

Dealers said, barring few second rung counters frontline, new economy stocks like Infosys Technologies and Satyam Computer experienced selling pressure in the wake of weakness in the overseas markers on Friday last. Operators and other market players exited from these stocks to enter more safer counters of old economy stocks — like cement stocks.

The BSE Sensex opened on a firm note at 3445.22 and amidst lacklustre trading, moved in a narow range of 34 points with a high of 3468.19 and a low of 3434.04 after closing at 3442.89, a gain of 6.52 points. Nifty followed suit and closed at 1115.25, gaining 2.95 points.

Among the new economy stocks, NIIT was the only exception which attracted good buying support and was locked in the upper circuit of 10 per cent at Rs 269.45. Other frontline technology stocks like Infosys Technologies (down 3.34 per cent at Rs 4398.35) and Satyam Computer (down by 2.58 per cent at Rs 266.80), attracted all round seling, including foreign players.

Selling in FMCG major HLL and refinery giant Reliance Petroleum (RPL) also played an important role in the Sensex shedding its earlier gains. RPL was down by 1.49 per cent at Rs 33.10, while HLL
was down by 0.23 per cent at Rs 214.80.