The Hindu Business Line : ONGC, ICICI Bank ensure Sensex end positive

The Sensex ended the day at 4975.40, up 24 points from its previous close of 4951.7. The S&P CNX Nifty gained 13 points, closing at 1571.60 points, as against the previous day's close of 1558.80 points.

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Positive sentiment has returned to the markets on hopes of a review of the transaction tax. However, continuing fears of delays in monsoon, still hang over the markets, with the indices remaining range bound. The declaration of earnings for the quarter ended June 30, gave a boost to the prices of a number of stocks.

The Sensex opened on a positive note at 4957 points. The markets remained buoyant for most part of the trading session, until selling pressure towards the later session, drove the indices down to lower levels.

However, the index heavyweights such as ONGC an ICICI Bank helped the benchmark index to hold firm and end in the positive territory.

Among the stocks constituting the index, two stocks declined for every three that gained. Leading the gains were the stocks of ICICI Bank, ONGC, Cipla and Zee Telefilms. The stock of ONGC appreciated by 4.39 per cent to close at Rs 697.35. The gain in the stock was its highest in the last two weeks.

Among the broader indices, the BSE-PSU Index and the BSE Bankex gained more than one per cent. The Bankex appreciated by 1.39 per cent, led by the stock of ICICI bank. The stock gained 3.33 per cent. The appreciation could be in anticipation of sound earnings numbers from the bank. Other banking stocks that grabbed the attention of investors include Canara bank, UCO Bank, Andhra Bank, Global Trust Bank and Allahabad Bank.

Steel stocks also witnessed considerable action on Monday. The stocks of SAIL, Essar Steel, Jindal Vijayanagar and Tata Steel were in the limelight. Steel stocks had gained last week on the back of restoration of DEPB benefits and firming up of demand for steel from China.

The announcement of financial results drove trading activity in a number of stocks. Stocks that gained include Apollo Tyres, Allahabad Bank, National Fertilisers and CMC.

The stock of CMC and gained a whopping Rs 36 to close at Rs 514.85, while that of Allahabad bank gained Rs 2.45 to close at Rs 40.05.Both these companies witnessed a doubling of profits for the quarter ended June.

The stock of National Fertilisers also gained 3.5 per cent to close at Rs 39.45 on the back of good results. Interestingly, the stock of Apollo Tyres gained Rs 2.25 to close at Rs 180.65, even though the company has seen a drop in profits as against the corresponding previous quarter.

The stock of Syndicate Bank gained marginally following the announcement of its results. The bank has posted a moderate growth of profits. The stock of HDFC remained stable, even though the company posted a 22-per cent growth in profits. Meanwhile,

the stock of IPCL fell by Rs 2 despite the fact that the company had reported a substantial growth in profits.

Announcements of positive news failed to spruce up the prices of certain stocks. The stock of Alstom Projects gained marginally following the declaration of dividend at the rate of Rs 6 per share, which includes a special one-time dividend of Rs 3 per share. BHEL had bagged a Rs 218-crore order for setting up HPCL's 40 MW captive co-generation power plant on turnkey basis at Vishakhapatnam in Andhra Pradesh. The stock of BHEL, however, remained unaffected by the positive development.

In fact, the stock of Cadila Healthcare fell by Rs 10 to close at Rs 465 even as the US Food and Drug Administration, which had inspected Zydus Cadila's formulations manufacturing plant in May this year, approved its facility.