Nifty up 16 points in range-bound trade; banks, oil shares rally

Mumbai: Equities posted modest gains on August 21 after a brief overnight fall on firm buying in select counters on the National Stock Exchange (NSE) and continued optimism over corporate earnings. Banking stocks were the clear winners along side FMCG, auto and healthcare.

However, technology and metal counters saw good amount of profit-taking. Trading began on a flat note, weighed down by lacklustre Asian cues amid investor caution after US Fed minutes indicated ending its ultra-loose monetary policy earlier than expected. The benchmark Nifty mostly traded in a tight range with sharp volatility before rebounding towards mid-afternoon.

Meanwhile, other Asian bourses ended mixed after data showed a surprise deterioration in Chinese manufacturing figures as well as confusing commentary from Fed amid concerns over an early rise in US interest rates. The 50-share Nifty fluctuated between a high of 7,919.65 and a low of 7,855.95 before ending at 7,891.10, a gain of 15.80 points, or 0.20 per cent, over last close. Major gainers were HDFC Bank, SBIN, L&T, Sun Pharma, Bajaj Auto, M&M, Axis Bank, Kotak bank, ITC, PNB, Bank of Baroda and ONGC.

Shares of state-owned oil marketing companies (OMCs) rebounded sharply after a brief pause on the back of falling crude oil prices. BPCL, IOC and HPCL rose over 2-4 per cent. Prominent laggards included United Spirits, DLF, Jindal Steel, NTPC, Sesa Sterlite, UltraTech, Tata Steel, Hindalco, Dr Reddy's and Grasim. Turnover in the cash segment rose to Rs 16,952.06 crore from Rs 15,456.86 crore yesterday. A total of 8,352.01 lakh shares changed hands in 71,74,131 trades, while market capitalisation stood at Rs 90,46,143 crore.