The Hindu Business Line : 2005 begins on promising note

The first trading day of 2005 saw strong buying in both large- and mid-cap stocks. The onset of the earnings season was one factor that drove the rally, as investors remain optimistic about the performance of corporate India.

Click here for table

Sectors that caught investors' attention include automobiles, sugar, cement and oil and gas stocks.

The BSE Sensex soared 77 points or 1.16 per cent to close at 6679.20 points, extending its 80- point gain on Friday. The Nifty rose 35 points or 1.66 per cent to close at 2115, just below its intra-day high of 2118.60. The broad-based S&P CNX 500 also logged returns of 1.65 per cent, while the CNX Midcap 200 continued to outperform benchmark indices with its returns of 1.95 per cent. The market remained bullish throughout the trading session. Reflecting the optimistic mood is the advance/decline ratio. On the BSE, for every three stocks that advanced, one declined.

Buying in the stocks of Reliance Energy, Bharti Tele-Ventures and Hero Honda Motors fuelled the rally in the Sensex. The stock of Reliance Energy was in the limelight, logging a smart, seven- per cent gain to close at Rs 561.85. Reports that a unit of UK-based CDC group may acquire three of its plants spurred interest in the stock. Stocks of other companies of the Reliance group remained in the black, even as Mr Anil Ambani announced his resignation from the post of Vice-Chairman and Director of IPCL.

The stocks of Bharti Tele-Ventures and Hero Honda were other strong gainers, appreciating more than 5 per cent each.

Auto stocks witnessed buying activity as players announced their December sales numbers. Apart from Hero Honda, the stocks of Bajaj Auto and Mahindra and Mahindra and Maruti also gained. The stock of Bajaj Auto gained Rs 11.4 to close at Rs 1142.8 after it recorded a 58-per cent increase in sales in December 2004.

Sugar stocks were also among the favourites of the day. The prices of sugar are expected to rule firm for the most part of this year as well. The stock of Bajaj Hindusthan spurted 18 per cent to close at Rs 136.75. Volumes surged from 2.8 lakh shares on Friday's trading to 9.17 lakh shares on Monday. The stock of Dwarikesh Sugar, which listed on Friday at a more than 100 per cent premium, extended its gains by adding another 12 per cent to close at Rs 148.60.

The stocks of Sakthi Sugars, Dhampur Sugar, Thiru Arooran Sugar, Balrampur Chini, Bannari Amman Sugars and EID Parry were the other strong gainers of the day.

Selective buying was seen in the oil and gas sector. The stock of Petronet LNG was a prominent gainer, appreciating 20 per cent to close at Rs 37.55. Volumes soared from 20.53 lakhs on Friday to 1.22 crore on Monday's trading. The stocks of GAIL, Gujarat Gas and Indraprastha Gas were other prominent gainers.

Other stocks that gained include that of Indiabulls. The stock gained nearly five per cent to close at Rs 83.9 on the back of news that Farallon Capital proposes to take up a 33-per cent stake in Indiabulls Credit Services, a subsidiary of the company.

Another stock that continues to notch up gains is that of Glenmark Pharmaceuticals. The stock appreciated by nearly nine per cent to close at Rs 526.10. The company will be meeting on January 6 to consider the issue of bonus shares.

Stocks that cooled off include that of Bharati Shipyard, which listed on Thursday at a strong premium. The stock declined 5 per cent to close at Rs 136.8. Other stocks that traded weak on Monday include some of the hotel and tourism scrips such as Taj GVK and Thomas Cook.

The stocks of Zodiac Clothing, Sintex, United Phosphorous and NDTV were also among the prominent losers.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NetVision Web plans open offer on BSE advice

Canbank plans mid-cap fund

Kotak Mutual Fund plans to launch equity-linked scheme

SEBI for depository model for MFs

GMO picks up stake in IVRCL

Bull domination

Sensex salutes New Year with 76-point gain

D-Link India: Institutions' interest seen

Short-term trend reversal likely in Tata Tea, Hero Honda

2005 begins on promising note