The Hindu Business Line : Cement, pharma, auto stocks prop up Sensex

THE positive sentiment following the recent exit poll results continued on Thursday. For the third consecutive day, the markets have closed in the positive territory.

Cement stocks dominated the show, while select pharma and auto stocks ruled firm.

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The BSE Sensex closed at 5,924.18 points, up 47.76 points from its previous close of 5,876.42 points.

The Nifty appreciated by 16 points and ended at 1,889.95 as against the previous close of 1,873.35.

The Sensex opened on a strong note at 5,888.7. Selling pressure in the earlier sessions brought it down to a low of 5,863.60.

However, it quickly bounced back and traded in the positive territory for the rest of the trading session. The positive sentiment that prevailed is manifest in the advance-decline ratio.

Of the 30 shares constituting the Sensex, as many as 25 stocks appreciated.

The major gainers included MTNL, L&T, Gujarat Ambuja, Grasim and ACC while prominent losers included Hindalco, HLL, Infosys, Satyam and Tata Steel.

Cement stocks were in the limelight with most of them registering higher gains.

With predictions of a normal monsoon this year, investors are optimistic about the prospects for the sector. Prominent gainers were Gujarat Ambuja, ACC, Birla Corporation and India Cements.

Pharma stocks also ruled steady with quite a few of the companies declaring good results.

Mid-cap companies such as Divi's Laboratories, Glenmark Pharma, Lupin, Lyka Labs and Matrix Labs were among the prominent gainers. Glenmark Pharma gained Rs 6.40 to close at Rs 159.60. The company's Q4 net profit rose 39 per cent.

Lupin gained Rs 73.15 to close at Rs 857.80. The company has received an INDA approval for psoriasis oral treatment.

Bucking the trend was Nicholas Piramal, which declared its results for the last quarter. It posted a 59 per cent rise in net profits. Despite posting good earnings numbers, the stock declined marginally by Rs 2.1 to close at Rs 787.75.

Sun Pharma declined marginally despite having declared a bonus of 1:1.

Dishman Pharmaceuticals made its debut on the BSE on Thursday. The stock opened at Rs 345, a 97 per cent premium to its issue price and closed at Rs 542, much higher than the issue price of Rs 175. About 89 lakh shares were traded on the NSE.

Auto stocks were also in favour. Maruti Udyog led the pack soaring by Rs 28.1 to close at Rs 590.45.

Tata Motors also appreciated by Rs 12.40 to close at Rs 524.75. The interest in the stock could be seen in the light of it recently receiving an order for $3.5 million from Russia.

Other prominent gainers included Mahindra & Mahindra, TVS Motors, Eicher Motors and Escorts.

Banking stocks, particularly the mid-cap stocks witnessed heavy activity.

Vijaya Bank put on Rs 1.05 to close at Rs71.3. The bank reported a 90 per cent jump in its bottomline in Q4.

Other banking stocks that gained include Union Bank of India, Andhra Bank, UCO Bank, Bank of India, SBI, IndusInd Bank, Canara Bank and ICICI Bank.

Satyam Computer declined by Rs 2.3 to close at Rs 331.24.

The company declared its fourth quarter results after trading hours. It had registered a rise of 66 per cent in profits.

Jubilant Organosys gained Rs 5.45 to close at Rs 685.25.

The board of the company has approved the signing of an MoU to purchase 80 per cent equity shares of two European pharmaceutical companies.

SKF Bearings appreciated by Rs 4.75 to close at Rs 94.6 on the back of good results.

Some of the stocks that witnessed large volume increases were Vesuvius India, iGATE Global, Sun Pharma, Nicholas Piramal and Divi Labs.