The Hindu Business Line : Markets end on bullish note

The Sensex gained 11.78 points to close at 5662.87 points in an extremely volatile trading session. The Sensex lost much of its intraday gains towards the end after touching an intra day high of 5699.18. The Nifty gained 2.8 points to close at 1783.85 points. The markets were volatile ahead of expiry of derivatives contracts on Thursday. Traded volumes were low with shares worth Rs 1,660 crore being traded on the BSE compared to Rs 1,699 crore on Tuesday. The undertone was bullish with 1378 stocks closing on a positive note and just 719 stocks slipping from their previous close.

The primary trigger for the days trading session was the earnings numbers declared for the September quarter. Unlike the earlier 6-7 quarters, this time, the earnings numbers have not been buoyant across the board. A number of manufacturing companies have reported decline in earnings despite an impressive revenue growth. The higher input costs is finally showing up on the bottomline of several companies. Stocks such as Kirloskar Brothers and Kirloskar Oil Engines have reported marginal decline in net. The stocks lost ground in the recent trading sessions. On the other hand, commodity stocks in the mid cap and large cap space remained bullish. Nav Bharat Ferro Alloys, Gujarat NRE Coke, ACC and Gujarat Ambuja, to name a few, rose steadily.

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Chennai Petroleum and Kochi Refineries gained ground on the back of strong quarterly results. Stand-alone refineries stand to gain from the recent rise in global crude oil prices as gross refining margins rise. Chennai Petroleum stock gained more than 10 per cent to close at Rs 245.6. Other stocks that triggered interest due to impressive results were Alembic, Amara Raja Batteries, Titan Industries and Glenmark Pharma.

Pharma stocks across the board witnessed a buying spree. Vimta Labs, Shasun Chemicals, Dishman Pharmaceuticals, Pfizer, Ind Swift, Elder Pharma, Aventis Pharma, Ajanta Pharma, Aurobindo Pharma were all on an upmove. Despite a sharp decline in earnings, the stock of Dr Reddy's was up 3 per cent. Cipla, Aventuis Pharma and Glaxo reported impressive numbers. Ind Swift Labs was up on news that the company is tied up with European companies for contract research and also plans to expand its statins capacity five-fold.

Among the mid cap space, Valecha Engineering, Sat Investeck, Saregama India, Coral Labs, FACT, Precision Wires and Shah Alloys gained sharply. Traded volumes spurted in tandem with the share price. CNX Mid cap gained over 1 per cent despite the Nifty ending on a near flat note. Reliance Capital has acquired a further 2.3 per cent stake in Rallis India taking its total stake to 11.79 per cent, fuelling the stock.

The Maruti stock, that suffered a heavy beating in the recent past, gained some momentum after the company declared impressive results.

Satyam Computer featured among the top gainers moving up Rs 11 to Rs 380.65. The interest could have been triggered by newspaper reports of the company scouting for acquisitions in Europe. Subex Systems, Geometric Software, Rallis India, Bharat Electronics, Eimco Elecon, Hikal, Siemens, Phoenix Mills and Ravolgaon Sugar recorded sharp gains during the day. The price gains was on limited volumes.

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