The Hindu Business Line : Exit poll predictions fuel markets

AFTER subdued trading interest on Tuesday, the stock markets witnessed strong buying activity on Wednesday. The benchmark BSE Sensex rose 71.61 points (1.23 per cent) on the back of buying interest in key index heavyweights Reliance Industries and ONGC.

The 30-stock index opened the day's trading at 5803.7 points, marginally lower than the previous day's closing. However, during the course of the day, the Sensex steadily rose and reached the day's high of 5890.02 points, before closing at 5876.42 points.

On the BSE, most of the indices, including the BSEPSU, BANKEX and the BSE TECk, ended the day on a positive note. On the NSE, the 50-stock S&P CNX Nifty rose 29.1 points (1.58 per cent) to 1873.35 points.

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The indices gained substantially as the recent exit poll results seemed to indicate a favourable outcome for the ruling coalition Government. Positive sentiment in the indices may also be due to the decision taken by the US-based CalPERS, one of the biggest pension funds with assets of $166 billion, to invest in the Indian equity market.

On the BSE, of the total 1,972 stocks traded, 1,281 logged gains, 610 registered declines and the rest remained unchanged. Among the Sensex constituents, 22 stocks recorded gains and the rest declined.

Among the index heavyweights, Reliance Industries (2.9 per cent) and ONGC (1.7 per cent) recorded gains. Infosys Technologies and ITC also edged up. ICICI Bank, however, dropped 3.3 per cent to Rs 296.40.

The stock of Cipla rose 4.8 per cent to Rs 1,310.10 on the back of good earnings growth. The company's net profit, during the quarter ending March 2004, rose over 100 per cent to Rs 101.7 crore from the corresponding previous period.

Other gainers in the index included Tata Steel (3.6 per cent), Reliance Energy (4.3 per cent) and Tata Motors (4.2 per cent).

The stock of IDBI Bank rose 3 per cent to Rs 55.85. For the quarter ending March 2004, the company posted a net profit of Rs 37.6 crore as against Rs 16.4 crore registered in the corresponding quarter of the previous year.

The stock of Avery India gained 1.7 per cent to Rs 36. The company has offered to buy back its shares (19.36 per cent of the paid-up capital) at Rs 35 a share, through the tender offer route.

The stock of Goodlass Nerolac Paints rose 13.3 per cent to Rs 534.1. This has to be seen in light of the company's plans to issue bonus shares.

The stock of Hiran Orgochem fell by 9.5 per cent to Rs 10.4. The company plans to issue equity to the tune of 10 lakh shares at a price of Rs 25 a share, through preferential allotment.

The stock of Glenmark Pharma rose 2.7 per cent to Rs 153.2. The company's drug candidate GRC-3886 is completing its pre-clinical studies and is expected to enter phase one of clinical trials in July 2004.

The stock of Wockhardt also rose 1.8 per cent to Rs 853.4. The company has unveiled plans to establish its own sales and marketing organisation in the US.

The stock of Matrix Labs rose by 1.3 per cent to Rs 1,435. India Newbridge Investments along with Maxwell Mauritius have made an open offer to the public shareholders of the company to acquire 2.9 lakh shares at a price of Rs 1,500 a share.

The stock of Indo Rama Synthetics rose 2.2 per cent to Rs 68.85 on the back of robust earnings growth in the recently concluded quarter.

The stock of the paper tube maker Bilcare rose by 2 per cent to Rs 146.7. The company has plans to raise funds to the tune of Rs 35 crore, through preferential allotment.