The Hindu Business Line : Markets recover despite hike in petro prices

AFTER a prolonged lull, the markets on Thursday gained over a percentage. The advance to decline ratio was positive indicating a positive sentiment in the stock markets.

Despite a hike in the prices of petrol, diesel and coal during the week, the markets recovered. Oil stocks, HPCL, BPCL and Kochi Refinerires were in limelight after a hike in petrol prices.

The Nifty rose 1.16 per cent to 1512 points. Though the Nifty was buoyant, the broader indices such as the S&P Midcap200 and NiftyJunior were subdued. However, select mid-cap stocks such as Blue Dart, Ballarpur Industries, SKF Bearings, Adlab Films and Berger Paints were active gainers.

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Stocks in the auto and banking sector in the forefront. Stocks such as Maruti, Tata Motors and M&M, that were beaten down in the past few days, attracted some buying interest. These stocks gained over 3 per cent during the day.

The BSE Bankex index was the top gainer among sectoral indices. Except Jammu & Kashmir Bank, all other stocks that constitute the BSE Bankex index gained. J&K Bank dipped 2 per cent.

Among the top gainers in the banking sector were Oriental Bank and Punjab National Bank. Others such as Canara Bank, Bank of Baroda, Bank of India and Syndicate Bank too were some of the top gainers.

Pharmaceutical stocks across the board slid after CLSA, a foreign brokerage firm downgraded Indian pharma stocks.

CLSA cut its recommendation of five Indian pharma companies, Ranbaxy, Cipla, Sun Pharmaceuticals, Wockhardt and Biocon. It maintained a sell on Dr Reddy's.

Dr. Reddy's and Ranbaxy slid close to 4 per cent. Traded volumes were much higher as compared to the previous day in these two stocks. Most other pharma stocks such as Natco Pharma, Neuland Laboratories, IPCA and Nicholas Piramal too followed.

The stock of Siemens India gained two per cent after it announced that it is selling its life support system business for a consideration of Rs 9.76 crore. The product belonged to its medical equipment division, which has been a drag on the company's profitability. The stock closed at Rs 840.5. Traded volumes rose to over 2000 shares as against just 500 shares the previous day.

Ramco Systems gained close to 12 per cent to Rs 237.9 after the company announced that it announced its fourth quarter results.

Among the socks that witnessed a price rise and good volume growth were Orient Paper (8.3 per cent up at Rs 41.65), and Navneet Publications (4.61 per cent up at Rs 151). Alps Industries, Premier Explosives and Prime Securities are stocks that gained in excess of 8 per cent. Mather & Platt gained close to 20 per cent.

Among major losers were Clariant India, Global Trust Bank, Engineers India, Indo Gulf Fertilisers and Harrisons Malayalam. Engineers India has recorded a 25 per cent growth in net profit. It has also declared a dividend of Rs 6.5 per share for the year 2004. The announcement was made after trading hours.

Thermax, which has been range bound for a long time gained marginally at Rs 365. However, traded volumes rose substantially.

BHEL gained close to Rs 1.65 per cent. The company announced that it has bagged an order for Rs 80 crore from Oman for compressors. The company has been receiving repeat orders form Oman.

The shares of SBI rose 1.5 per cent supported by a substantial increase in traded volumes. The company is interested in selling stake in non core businesses such as mutual funds. Apart from the broad based rally in bank stocks, this could have also perked up interest in the stock.

Britannia Industries gained 1.46 per cent to Rs 610 after the company announced a buyback of shares at Rs 650 a share. The price rise was accompanied by substantial rise in volumes.

Metal stocks such as SAIL and Hindalco were prominent losers Moser Baer, Ashok Leyland, Bharat Forge and MICO too lost.