The Hindu Business Line : Equities rebound from initial setback

THE markets ended on a flat note on Monday. The euphoric sentiment that had caused the markets to touch 6,000 the previous week appears to have been tempered by the alleged rift between the Ambani brothers.

The market mood was bearish until the Chairman of Reliance, Mr Mukesh Ambani, clarified that all ownership issues had been settled.

The markets then headed towards the positive territory and just managed to end the day's session at a marginally higher level than its previous close. The BSE Sensex ended the day at 5,963.8, just two points higher than its previous close. The S&P CNX Nifty closed one point higher at 1,873.35.

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Of the 30-strong Sensex, about 17 stocks advanced. Reliance stocks witnessed considerable activity. The stock of Reliance fell to a low of Rs 509 during the trading session. It, however, rebounded to Rs 532. The stock of Reliance Energy suffered steeper losses, declining by 3.64 per cent to close at Rs 605.55.

The key index gainers include Tata Power, HDFC, ACC, ITC and Zee Telefilms.

The stock of Tata Power gained more than 5 per cent to close at Rs 335.95. The stock of HDFC rose by 2.58 per cent or Rs 18.30 to close at Rs 726.30. The gains come on the back of the company decision to hike the interest rate on its floating rate loans by 50 basis points. The prominent losers of the day were HPCL, Reliance Energy, Tata Steel, Reliance and ICICI Bank.

Buying was weak in stocks such as BHEL, ONGC, Ranbaxy, Gujarat Ambuja and Hero Honda. The stock of Ranbaxy ended almost flat even as it announced the launch of Flotral, used in the treatment of urological disorders.

Fertiliser stocks were in the limelight on Monday, with a host of stocks ending the day's session at a higher level. The stocks of Nagarjuna Fertilisers, Chambal Fertilisers, Coromandel Fertilisers, Madras Fertilisers, GSFC, GNFC and Deepak Fertilisers were among the stocks that gained.

The textile buzz continues to pervade through the markets. Prominent gainers include Vardhman Spinning, Mahavir Spinning, Indian Rayon and Zodiac Clothing.

The stock of Vardhman continues its uptrend gained Rs 12.5 to close at Rs 261.45. The stock of Indian Rayon has also been climbing steadily.

Madura Garments recently announced plans to launch the Italian brand of suits, Armani, in the Indian market.

Pantaloon Retail added another Rs 16.5 to its Friday closing, ending the day at Rs 549.3. The stock has been popular with foreign institutional investors and has attracted considerable interest in the past year. Reports of a strong Diwali season for the company appear to have spurred increased interest in the stock. The stock gained over 10 per cent last week.

Apart from these stocks that have been regularly hitting the gainers list over the past couple of weeks, a couple of stocks that have been out of action in recent times emerged in the gainers list. These include HMT, Apollo Hospitals, Indian Card Clothing, McDowells and United Breweries.

The stock of Indian Card Clothing touched its upper circuit filter at 10 per cent on Monday, building on the gains of Friday's trading. The company is one of two companies in the domestic market that manufactures carding machines, catering to the requirements of spinning mills.

McDowells was another stock that was up sharply. The stock gained Rs 20 per cent to close at Rs 105.80.

The stocks of Shaw Wallace and United Breweries were also up on Monday. Reports that bids have been made for a strategic alliance with the United Breweries Group has spurred interest in the stock of United Breweries, which gained Rs 5.8 to close at Rs 74.45. The company is apparently reviewing unsolicited offers for the alliance.