Markets end with small gains

The markets ended in green but near the lowest point of the day after a strong start. Select cement, energy, tea, pharma, bank stocks saw good buying interest. Global equity markets ended higher.

The sensex closed at 12706 with a gain of 60 points while the Nifty 50 index closed at 3698 just 18 points up.

Bank shares edged up on short-covering in the derivatives segment. HDFC Bank gained 2.8% to Rs 953 and State Bank of India rose nearly 3% to Rs 955. Traders had built short positions in leading bank counters last week.The rupee’s rise weighed on IT shares. Infosys shed 1.6% to Rs 2052. Wipro shed 1.3% to Rs 571.25 and TCS shed 0.8% to Rs 1250. TCS and Wipro moved fluctuated between positive and negative territory during the day. IT shares derive a lion’s share of their revenue in dollar terms. A higher rupee, therefore, may lead to a fall in their revenue and profits to that extent.Ranbaxy surged 5.6% to Rs 334.60, on a report that the company had pulled out of the bidding war for Merck's generic-medicines unit, citing high valuations.