The Hindu Business Line : Sensex gains on positive sentiment

THE markets picked up from where they left off on Friday and gained further on Monday, reflecting a more positive sentiment. The BSE Sensex gained 49 points and ended the day at 4938.15 points, up from its previous close of 4,889 points. The Nifty rose by about 21 points to close at 1,542.55, higher than its previous close of 1,521.10.

The Sensex opened on a firm note at 4,927 points, higher by 38 points from its previous close. The markets traded firm for most of the trading session. However, towards the later session, selling pressure drove the benchmark index down, eroding a major part of the day's gains. Even so, the index managed to remain in the positive territory and closed one per cent higher. For every stock that declined, two stocks gained, reflecting the upbeat mood in the market. The main gainers among the Sensex constituents included the stocks of Bharti Tele-Ventures, HDFC, Grasim, ONGC and Satyam Computer.

Click here for table

Stocks that witnessed the most declines include BHEL, Hero Honda, Tata Steel, HLL and Wipro.

Banking stocks were in the limelight. The stock of Federal Bank gained impressively on the back of its announcement of a 2:1 bonus. The stock gained Rs 24 to close at Rs 354. Other banking stocks that witnessed heavy activity include Union Bank of India, SBI, Bank of Baroda, PNB, Oriental Bank and Bank of India.

Stocks of companies related to the infrastructure sector also saw some buying interest. This came on the back of the President's address to Parliament where he reiterated the new Government's commitment to development of infrastructure in the country.

Cement stocks were among the stocks that gained. The stock of Grasim witnessed a sharp surge, gaining Rs 40 to close at Rs 1,080. The stocks of Gujarat Ambuja and ACC also gained. Stocks of construction companies also gained. Prominent gainers were Madhucon projects, IVRCL, Nagarjuna Construction and Hindustan Construction.

Stocks of the steel sector witnessed some activity with SAIL, Jindal Iron & Steel and Essar Steel registering an appreciation in prices. The stock of Tata Steel, however, bucked the trend, falling by Rs 6.7 to close at Rs 308.75. This was despite the company's recommendation of a bonus of one share for every two held.

The stock of Tata Motors gained by Rs 4 to close at Rs 395, on the back of a 35 per cent jump in sales during the month of May. The stock of Eicher Motors also rose by Rs 3 to close at Rs 209.55. The company saw a 17 per cent increase in sales in May. The stock of Mahindra & Mahindra also surged by Rs 13 to close at Rs 444. This could be viewed in the context of the company earmarking a $100 million for acquisitions both domestically and abroad. Other prominent gainers in the auto sector included Maruti, TVS Motor and Bajaj Auto.

Oil stocks ruled firm on Monday. Reliance Industries gained a smart 2.5 per cent to close at Rs 444. The stocks of ONGC, HPCL, BPCL and IOC also ended the day higher.

Textile stocks also gained. The stock of Gangotri Textiles gained on the back of announcement of a dividend of Rs 3 per share. The stocks of Arvind Mills, Alok Industries and Zodiac Clothing appreciated smartly. The stock of Indian Rayon gained Rs 3.3 to close at Rs 204. The company recently declared good earnings numbers.

The stock of Banco Products appreciated by Rs 9.45 to close at Rs 105 on the back of a dividend declaration of Rs 7.5 per share.

The stock of Magna Electro Castings remained stable, even as the company declared an 18 per cent dividend.

Some of the stocks that witnessed large trading volumes include Arvind Mills, Canara Bank, Bank of Baroda and Alka India to name a few.