Markets opened flat in the morning and immediately dipped one third of a per cent. The recovery also came equally fast but the traders were too apprehensive to take the indices out of a narrow range.

Banks led by HDFC Bank and ICICI Bank were the flavour of the day. Both stocks maintained a steady up trend through out the day and closed with substantial gains.

HDFC Bank gained over 6 per cent while ICICI Bank gained around 3 per cent. HDFC, parent company of HDFC Bank, also gained over 3 per cent.

Punjab National Bank was the sole significant gainer among PSU bank stocks with gains of over 3 per cent. After languishing below Rs390, which was the price for its recent issue, causing much heartburn to retail investors the stock finally managed to close above Rs400.

The Nifty was stuck in a range for most of the session before making a move in the closing half hour. Recovery in some frontline stocks which were trading in losses earlier helped the indices to close the day with decent gains.

Sensex closed at 6781, up 23 points and the Nifty at 2098, up 5 points from yesterday's close. Nifty June futures discount to the spot narrowed to 10 points from yesterday's 14 points.

Among Nifty stocks, HDFC Bank, Punjab National Bank and VSNL were the major percentage gainers while Tata Steel, HLL and ITC were the major losers.

US markets closed flat yesterday as traders remained apprehensive before the Fed Chairman's testimony on Thursday. Decline in crude prices helped the markets to recover from early losses. Dow closed marginally lower while NASDAQ closed a few points in the positive.

Crude futures for July delivery declined a per cent yesterday to close at $54.49 to a barrel. The decline came on expectations of a rise in US crude inventory in data due tomorrow. The commodity has declined further and is trading closer to $54 in late Asian trades.

Indian tech ADR's Wipro and Infosys managed to close with good gains yesterday. Wipro gained 3 per cent while Infosys closed more than a per cent higher. Satyam, however, closed marginally in the red. Private banks ICICI Bank and HDFC Bank closed with decent gains. MTNL was the largest loser closing more than 2 per cent lower.

Wipro gained close to 2 per cent early in the morning itself and maintained the up trend for the rest of the day. In an interview, Wipro's chairman indicated that the company is ready for more acquisitions, now that it has fully integrated all the companies acquired so far. He mentioned that Wipro is looking at companies with revenues of $20 to $100 million which would help the company to strengthen its portfolio of services.

There have been some top level changes at the BPO division of the company, Wipro Spectramind. Wipro had acquired Spectramind to enter the fast growing BPO solutions business. The company says the BPO division has been fully integrated and the business is now ready for vertical integration.

After launching its new premium hatchback model Swift at aggressive price points, Maruti has announced that it will increase prices from tomorrow. However, the company's launch strategy has paid off with close to 20,000 bookings received so far. The stock closed half a per cent higher.

HDFC has successfully closed its real estate institutional fund. The fund, which was targeted mainly at institutions, managed to raise Rs1,000 crore. The fund will invest in large real estate and township projects.

Jet Airways said the US department of transport is studying the responses submitted by it after an American company of the same name had objected to a grant of permission to fly to the US. The Indian airline may also consider legal action against the American company.

Jet Airways expects to net revenues of close to $200 million per year from its international operations. It expects its long haul fleet to grow to over 20 aircrafts from the present three, over the next five years. The airline also mentioned that it is still in the process of evaluating the domestic air tariff after many low cost carriers have reduced the rates. The stock closed flat.

Mid-Cap Action

Mid-cap stocks closed with decent gains after touching new all time highs today. CNX Mid-Cap 200 index closed at 3046, up 10 points. This is a new all time high closing for the index.

Kotak Mahindra Bank declared its quarterly and yearly results for the period ended March. Fourth quarter profits have increased by over 12 per cent even when revenue growth was much higher at over 45 per cent. Full year profits have declined marginally on a consolidated basis.

The bank has declared a bonus issue of three shares for every two shares held. The bonus issue would help the bank to meet the RBI requirement of Rs300 crore paid up capital. The stock rallied close to 4 per cent in early trades before declining and closing with gains of 2 per cent.

Amara Raja batteries, manufacturers of automotive batteries, gained over 5 per cent in early trades after reports that the company would be the exclusive supplier for Maruti's new model Swift. The company has been focussing on exports in recent years and is an associate sponsor of the Jordan Formula One team.

Oil exploration and exploration service companies made a strong comeback as crude oil prices have bounced back to $55 levels. Hindustan Oil Exploration Company (HOEC) and Assam Company were among the major gainers. The former gained 5 per cent while the latter closed with gains of 20 per cent.

According to reports, HOEC has struck a small oil reserve in the Cambay basin of Gujarat. Assam Company has also struck oil in Assam along with a Canadian company. ONGC had given some marginal fields in Assam to the company for exploration.

Mid-cap pharma company Ind-Swift Limited gained over 5 per cent after the company announced its plans to invest around Rs100 crore for capacity expansion. The company is a leading exporter of pharmaceutical formulations.

Carborundum Universal, a manufacturer of industrial abrasives, gained over 3 per cent in early trades. The company announced that the shareholders have approved the proposal to issue bonus shares in the ratio of one share for every share held. The company also has a BPO division offering publishing solutions.

SRF Limited, Ahmedabad Electricity and Kothari Products were among the best performing stocks among mid-caps.

California Software, Gruh Finance and VIP Industries were among the significant mid-cap losers.

*Disclaimer: The author does not have any position in 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.

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