Sensex underperforms broader mkts; banks, metals, IT dive

The BSE Sensex and NSE Nifty continued to trade in a range around their previous closing values as the rally in Reliance Industries, L&T and auto stocks counter balanced a fall in ITC, banks, metals and technology stocks.

The BSE benchmark fell 26.50 points to 17,701.70 and the NSE benchmark was down 6 points to 5,374.50, the BSE Midcap and Smallcap indices gain 0.4% each.

Index heavyweight Reliance Industries shot up 2.6% to Rs 820 as PTI reported that the company proposed to drill exploration well in KG-D6 block at own cost. Foreign research firm Goldman Sachs has raised the target price from Rs 870 to Rs 936 a share.

Housing finance company HDFC, engineering and construction major Larsen & Toubro, commercial vehicle maker Tata Motors and drug producer Dr Reddy's Labs gained more than 1%.

Utility vehicle manufacturer Mahindra & Mahindra jumped 2% while two-wheeler major Hero Motocorp surged 3%.

ITC, which has highest market share in cigarette business, tanked 3% after the news that Australian court has approved logo ban on cigarette packs.

Shares of metals companies extended losses as the CAG report may be tabled in parliament soon. The leaked Comptroller and Auditor General report suggested that the private companies could have got windfall gain of up to Rs 1.86 lakh crore.

Sterlite Industries plunged 3% while Hindalco was down over 2% and Tata Steel declined 1.7%.

Private sector lenders ICICI Bank and HDFC Bank were down 1.4% and 0.5%, respectively.