The markets opened on a steady note today, but soon lost ground. The indices were trading with losses of a per cent each within an hour of opening as profit booking emerged after a long gap.

Buying at lower levels helped the indices to recover and a definite up move started before noon. After going very close to Friday's closing levels the frontline indices slipped again. The downtrend persisted till closing. The indices slipped considerably in the closing minutes, bit the last half hour averaging helped them to reduce the losses.

Banking stocks had a rough day, as ICICI Bank lost 3 per cent after declining a per cent on Friday. HDFC Bank closed nearly 3 per cent lower. SBI lost close to 2 per cent while PNB closed flat. HDFC added over 2.5 per cent.

Steel stocks gave up their Friday gains as both SAIL and Tata Steel lost around 2.5 per cent each. Among the other metal stocks, Hindalco was the big loser. The stock closed nearly 2.5 per cent lower, adjusted for the rights entitlement.

Cement was once again one of the best performing sectors today, led by Grasim. The stock closed with gains of more than 3 per cent. Gujarat Ambuja managed to close flat the spectacular rally on Friday while ACC lost a per cent.

Technology stocks had a mixed day today. HCL Technologies was the sole winner, adding well over 2 per cent. Satyam lost close to 2.5 per cent. Infosys declined well over a per cent while TCS and Wipro lost over half a per cent each.

Two-wheeler stocks maintained their strength in today's trading as both Bajaj Auto and Hero Honda closed with gains. Both stocks added around 2.5 per cent each. For Bajaj Auto, today's close is yet another lifetime high.

Four-wheeler stocks did not fare well as Maruti came under selling pressure and lost well over 2 per cent. M&M added over half-a-per cent. Tata Motors ended marginally lower.

Pharma stocks had a relatively better day, led by Cipla which gained close to 1.5 per cent. Glaxo and Sun Pharma closed with gains of half a per cent each. Dr Reddy also closed half a per cent higher while Ranbaxy was the sole loser in the big pharma sector, closing more than a per cent lower.

Both ONGC and Reliance Industries added a third of a per cent each, but were not strong enough to help the indices.

Tata Chemicals and Jet Airways were the other significant gainers among index stocks.

Sensex closed at 8611, a loss of 76 points, and the Nifty at 2603, lower by 17 points. Nifty November futures closed at a discount of 3 points to the spot index.

Grasim, Hero Honda and HDFC were the major gainers among Nifty stocks while Reliance Energy, ITC and ICICI Bank were the major losers.

Bajaj Auto may spend up to Rs200 crore next year to expand capacity to 3- million units per year from 2.4-million at present. The company has been steadily gaining market share this year and is planning to launch three new motorcycle models and four new scooters according to news agency reports.

Mid-Cap Action

Mid-cap action also came under selling pressure and declined. There was no panic sell off and buying support was seen in good quality stocks at lower levels. Losses on the mid-cap index were marginally lower than the frontline indices. The CNX Mid-Cap index lost 23 points and closed the day at 3756.

Steel manufacturer Ispat Industries tumbled today after the company announced an equity restructuring package. The company said it is planning to reduce equity capital by 40 per cent. Shareholders would be issued redeemable preference shares to compensate for the reduction in capital. The preference shares are redeemable after 11 years.

Ispat has also announced that an unlisted company called Ispat Metallics would be merged with it. The shares of Ispat would be suspended from trading till the restructuring procedures are completed. The company had reported disappointing results for the second quarter and the management had blamed heavy rains for the losses.

Software company Aztec will spend Rs40 crore to set up a new development centre near Pune. The facility would have the capacity for 1,500 employees and would focus on systems integration.

Another software company Helios & Matheson has announced that it will expand the development facilities in Tamil Nadu. The company is planning to spend Rs25 crore every year for the next three years for setting up new facilities.

US-based First Magnus Bank has selected the core banking software suite of I-Flex for its complete banking operations. I-Flex's product Flexcube is one of the most popular core banking software suits globally.

Subhash Projects has informed the exchanges that it has won a contract from the government of Rajasthan for construction of a water treatment plant and pumping station. The value of the contract is Rs269 crore.

Aurobindo Pharma has informed the exchanges that the company has received US FDA approval for cephalexin in capsule form. The company said the US market for the drug is worth $80 million per annum.

Another mid-cap pharma company which announced a US FDA approval for its drug was Cadila. The company informed the exchanges that it received the approval for promethazine in tablet form. The market for the drug according to the company is $116 million.

IT education provider NIIT Limited has announced a tie-up with the Open University of UK. Under the agreement NIIT would offer IT related graduate programmes of the university in select countries in Africa and Asia.

Polaris Software informed the exchanges that UK based Lloyds TSB Bank has selected its software suite for cash management services.

MSK Projects informed the exchanges that its board would meet later this month to consider an FCCB issue for $10 million.

Liqour company Radico Khaitan announced that its board would meet later this month to consider a stock split.

According to media reports, Elder Pharma is planning to enter Pakistan. The reports suggest that the company has initiated talks with local business groups for a partnership.

Motherson Sumi, Mahindra Gesco and Helios & Matheson were among the significant mid-cap gainers on the NSE.

Geodesic Info, Premier Limited and Spic were among the significant mid-cap losers on the NSE.

*Disclaimer:The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.