The Hindu Business Line : Buying in heavyweights props up indices

The announcement of robust October sales numbers by auto companies and strong quarterly results of select companies also added a dash of optimism to the market. Metal stocks also recovered after receiving a drubbing on Friday.

The Sensex witnessed volatility in the earlier hours of the trading session. After falling more than 20 points to a low of 5,649.03, the benchmark index moved upwards into the positive territory. The stocks of SBI, Infosys and Hindalco led the rally.

Among the Sensex constituents, 19 stocks advanced while 11 declined, reflecting the bullish sentiment. Nearly 60 per cent of the shares on the BSE rose on Monday.

The stock of SBI appreciated nearly 5 per cent or Rs 21.50 to close at Rs 468.65. The stocks of Hindalco and Infosys appreciated by more than 2 per cent. The smart gains recorded by Hindalco as well as

Tata Steel helped investors recoup some of the losses suffered on Friday. The stocks had come under selling pressure on fears of a slowdown in demand from China.

The stock of Zee Telefilms was the prominent loser; the stock fell 2.5 per cent to close at Rs 145.85.

With oil companies being forced to sell petrol and diesel at prices below the international level, the stocks of oil companies were at the receiving end. The stock of HPCL fell by Rs 1.1 to close at Rs 306.7, while the stock of IOC fell Rs 2.4 to close at Rs 429.15.

Select auto stocks came under the limelight on Monday as they announced their sales figures for October.

Maruti Udyog announced an increase in sales of more than 25 per cent during October over the previous year. The stock gained Rs 3.50 to close at Rs 378.90.

The stock of Hero Honda was another prominent gainer, rising by Rs 3.70 to end at Rs 427.05.

Other strong gainers for the day include the stocks of Greaves Cotton, Esab India, Blue Dart Express, Malwa Cotton, Indian Hotels, Oriental Hotels, IVRCL, Amtek India and Tata Tea.

The stock of Indian Hotels was a prominent gainer on the Nifty, appreciating 4.8 per cent to close at Rs 491.

The stocks of hotel companies have been on the uptrend, with occupancy rates and room tariffs ruling at peak levels this year.

The stock of IVRCL gained Rs 21 to close at Rs 255.85. The company has been awarded four irrigation contracts worth Rs 923 crore, by the Government of Andhra Pradesh. It has also reported an improvement in its order book position, which also perked up buying interest in the stock.

Money continued to chase stocks of companies that declared good earnings for the quarter.

The stock of Television Eighteen gained smartly to close at Rs 165.30. The company's profits more than trebled during the quarter.

The stock of Gujarat Narmada Fertilisers also gained after it reported a 35 per cent growth in profits.

Poor quarterly results, on the other hand, were received negatively.

The stocks of Asahi India Glass and Aurobindo Pharma fell as they announced results that were below expectation. The stock of Aurobindo Pharma declined by a whopping Rs 30 to close at Rs 340.15 after it reported a 92 per cent drop in profits.

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