The Hindu Business Line : Banking stocks take centre-stage

AFTER taking a breather on Wednesday, the markets resumed their upward trend. The BSE Sensex gained 28.19 points to end at 6441.85 points, led by Reliance and SBI. The S&P CNX Nifty appreciated by about 10 points to close at 2045.15.

The Sensex opened on a flat note. Sustained buying, however, kept the benchmark index in the positive territory throughout the trading session.

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Although trading in the index stocks was mixed, the advance to decline ratio reflected a more bullish sentiment, with 17 among the 30 stocks constituting the index advancing.

Besides the stocks of Reliance and SBI, the stocks of Bharti Tele-Ventures, Hindalco and Tata Steel were prominent gainers.

The stocks of Ranbaxy, HDFC, Wipro and Satyam figured in the losers list.

The bullishness was, however, more pronounced in mid-cap stocks on Thursday.

This is reflected by the gains in the CNX Midcap 200.

The index recorded a gain of 1.23 per cent against the 0.48 per cent gain in the Nifty.

The CNX Nifty Junior topped the performance of the Midcap 200, with its return of 2.20 per cent.

Banking stocks partied like there was no tomorrow. Stocks of Syndicate Bank, Bank of India, UTI, Andhra Bank, Vijaya Bank and Kotak Mahindra Bank were among those that logged strong gains.

The stock of Bank of Rajasthan added another 20 per cent, extending Wednesday's gains. The bank proposes to consider placement of equity shares on a preferential basis. It has also made a presentation to Societe Generale, which is reportedly interested in picking up a stake in the bank.

Trading volumes surged from 64 lakh shares on Wednesday to 1.08 crore shares on Thursday. The stock closed at Rs 68.4, up 20 per cent from its previous close of Rs 57.

The stock of Bank of India was another prominent gainer. The stock put on Rs 11.25 to close at Rs 92.9. The bank plans to raise Rs 100 crore by selling shares next fiscal.

Select pharmaceutical stocks, which have been in the limelight in recent trading sessions, took a breather.

Stocks such as Divi's Labs, IPCA Labs, Zandu Pharma and Dishman Pharmaceuticals, ended in the red.

The stock of Lyka Labs, however, surged by six per cent to close at Rs 71.95. Volumes catapulted from 0.68 lakh shares on Wednesday to 5.49 lakh shares on Thursday.

The stocks of Nicholas Piramal, Wockhardt and Glenmark Pharmaceuticals were other gainers.

IT stocks were out of favour. Infosys fell for the second consecutive day, following its statement that it may not be able to sustain its margins.

Other frontline companies, TCS, Wipro and Satyam, also fell.

Mid-cap IT stocks such as Geometric Software, Mastek and Patni Computers also fell.

Stocks and news: The stock of Sundaram-Clayton gained 11 per cent or Rs 76.25 to close at Rs 744.85. The promoters of the company are discussing the demerger of its brake business into a separate company.

The stock of Saregama India gained Rs 13.45 to close at Rs 147.7 on the back of its proposal to issue shares on a rights basis in the ratio of four equity shares for every seven held, at a premium of Rs 35 per share.

The stocks of IOC and IBP fell by Rs 2 and Rs 3.05 to close at Rs 513.95 and Rs 612.65 respectively. 125 equity shares of IOC would be offered for every 100 shares in IBP.

The stock of MRF gained Rs 74.25 to close at Rs 2705 on the back of its declaration of dividend of 140 per cent.

Other gainers for the day include the stocks of Gujarat NRE Coke, Satnam Overseas, Balrampur Chini, and Bharat Forge.

The stocks of Indian Hotels, Taj GVK, Crompton Greaves, TV18 and Subex Systems were among those that figured prominently in the losers list.

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