The Hindu Business Line : Zee Tele, Maruti Udyog surge ahead

AMID volatile trading and large trading volumes, Sensex and Nifty ended the day in positive territory. In early trade, Sensex opened weak and dipped to levels well below 5,600. Trading in Sensex stocks picked up momentum in late afternoon trade and the index surged to levels of about 5,630.

The momentum was, however, not maintained and the both the major indices could close with a gain of only about one-fifth of one per cent.

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Price action in select mid-cap counters was, however, more robust. Nifty Junior ended the day with a gain of 1.76 per cent while CNX Midcap 200 ended the day with gains of about 0.44 per cent.

Trading volumes in National Stock Exchange scaled above Rs 5,000 crore. Volumes this year were of this order previously only on July 29.

Among index heavy weights, major gainers were Zee Telefilms and Maruti Udyog. The stock of Zee Telefilms appears to have gathered momentum in the wake of Zee's move to legally challenge decision of cricket control authority to scrap the tender for award of telecast rights.

The stock of Maruti Udyog bounced back after the Heavy Industries Minister, subsequent to a meeting with the top officials of Suzuki, said that the proposed diesel engine plant would be a joint venture.

Buzz in banking: Much of the trading interest, however, appeared to remain riveted around financial sector stocks. The BSE Bank Index gained 2.46 per cent for the day. Out of the 16 stocks in the index, 15 recorded gains.

Major gainers in the index were Canara Bank, Andhra Bank and Union Bank of India.

A number of stocks outside of the banking sector index sizzled even more. The stock of IDBI gained 8.6 per cent while the stock of IFCI gained 13 per cent. Stocks of private sector banks too rose albeit by a smaller percentage.

Auto stocks gain: The BSE auto index gained more than a per cent. Apart from Maruti Udyog, stocks of two-wheeler companies also gathered momentum. Bajaj Auto, Hero Honda and TVS Motor advanced.

The stocks of Mahindra & Mahindra and Ashok Leyland also gained more than a per cent while the stock price of Tata Motors slipped.

Capital goods stay firm: The BSE Capital Goods Index was another out performer. Eleven out of the 16 stocks in the index registered gains.

The stocks of Alstom Projects and Dredging Corporation flared up to gain more than 5 per cent. Construction firms Larsen & Toubro and Gammon India also firmed up.

Metal stocks slip: The BSE Metals Index was the major loser for the day. Aluminium majors Hindalco and Nalco led the list of losers. The stocks of Tata Steel and SAIL also shed value marginally. The stocks of Saw Pipes and Hindustan Zinc, however, bucked the trend to end with gains.

News and stocks: The stock of Rajesh Exports gained 5 per cent. The company informed the stock exchange that it has received an export order for Rs 185 crore. The stock of RPG Life Sciences gained 5 per cent. The company denied a news report, which stated that it is on the look out for acquisitions.

The stock of Kinetic Engineering gained 4.8 per cent. The company denied a news report, which had stated that it is hiving off its Pune plant. The company clarified that it is now focusing on auto component exports.

Stocks of Universal Cable, Vindhya Telelinks and Birla Ericcson, the telecom cable companies from the MP Birla stable, which is now in the centre of a controversy, sizzled during the day. All the three stocks gained 20 per cent. The stock of Birla Corporation, however, registered declines.