Markets gain on IT stocks; ends up 46 pts

Markets today ended a lacklustre session in the green on global cues and buying in IT stocks.

The Sensex touched a low of 17,892 on opening but recovered immediately. The index was volatile in a narrow range for most part of the day and surged towards the end. The Sensex touched a high of 17,980 - up 88 points from the day's low. It finally ended with a gain of 46 points at 17,956.

The Nifty ended up 15 points at 5,394.

Most Asian stocks fell on Friday after US manufacturing contracted and wholesale prices dropped, fueling concern an economic recovery may be faltering. Nikkei slumped 2.8% to 9,408. Seoul Composite and the Taiwan Weighted were down around 1% each.

On Thursday, market regulator the Securities and Exchange Board of India allowed stock exchanges to go for both physical and cash settlement in futures and options trading.

Under physical settlement, the derivatives contract has to be settled with the delivery of underlying shares, while in cash settlement change in the price of a contract has to be paid.

BSE IT index surged on strong results from TCS. The index was up 1.8% at 5,459.

TCS soared 6% to Rs 832. The company posted 24.3% jump in its consolidated (Indian GAAP) net profit at Rs 1,906 crore for the quarter ended June 30, as against Rs 1,534 crore during the same quarter of previous year. Revenue increased 14% y-o-y to Rs 8,217 crore during the recently concluded quarter.

However, the oil & gas index was in red and ended down 0.3% at 10,523. Metal and power indices were also in red.

Tata Motors gained 2.6% at Rs 832. ICICI Bank surged 2.3% to Rs 902.

Reliance Communications added 2% to Rs 187. ONGC, Jaiprakash Associates, Hindustan Unilever and Cipla advanced around 1% each in trades today.

However, Mahindra & Mahindra dropped 2% to Rs 604. HDFC Bank was down 1.2% at Rs 2,039.

Market heavyweight, Reliance, slipped 1% to Rs 1,062.

Metal stocks -  Jindal Steel, Hindalco and Tata Steel shed 0.5% each in trades today.

BSE market breadth was positive. Out of 3,040 stocks traded, 1,604 advanced while 1,306 declined.

Value toppers...

TCS topped the value chart with a turnover of Rs 128.94 cr, followed by IFCI (Rs 71.14 cr), Tata Motors (Rs 66.02 cr), HPCL (Rs 62.05 cr) and Sesa Goa (Rs 56.52 cr).