Financial Daily from THE HINDU group of publications
Thursday, Mar 31, 2005
Financial Daily from THE HINDU group of publications Thursday, Mar 31, 2005 |
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Markets
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Commentary Columns - Sensor Textile stocks shine Alagappan Arunachalam
ON Wednesday, the market moved into the correction phase. A volatile trend was visible across sectors and categories. After opening nearly flat, the market shifted gears to alternate between positive and negative territory. Though the advances outnumbered the declines, the strength of the downward movement among the declines, remained an obstacle for the upward rally. For every stock that declined three registered gains. The sharp fall of 143 points on the BSE Sensex on Tuesday appears to be at the instance of the mass dumping by FIIs; they were reported to be net sellers to the extent of $394 million - the largest-ever net selling by FIIs in a day since 1999. Led by HDFC, ONGC and Tata Power, the bellwether indices managed to end up with gains after erratic movement that prevailed in the day. The BSE Sensex opened at 6371.4 points, moved within a narrow band of 80 points touching a low of 6321, picking up pace towards the close with a gain of 14 points. The S&P CNX Nifty was range-bound, the index moved within a band of 30 points; it closed with a gain of half-a-per cent. Contrary to Tuesday's low volumes, intense trading activity was witnessed in banking stocks. The sectoral index on the BSE moved in a volatile manner, but picked up pace to close in positive territory. The upward movement came after favourable reports from Fitch Ratings of the Indian banking system showing signs of healthiness, which appeared to have created interest among investors in banking stocks. PSU banks were the major gainers, Union Bank, UCO Bank, State Bank of India, Bank of India, and Bank of Baroda all of which gained more than two per cent. The Cabinet clearance amending the Factories Act enabling women to work in the night shift appears to have had a favourable impact on the textile stocks. Despite thin trading volumes, most of the stocks registered gains. Bombay Dyeing, Arvind Mills, Raymond, Indian Rayon and Vardhaman Spinning registered gains. Despite thin volumes in the auto stocks, many of them managed to recover a portion of Tuesday's losses. Exide, Ceat, LML and Motherson Sumi were the major gainers. Steel stocks continued to be under pressure; massive selling pushed the stocks lower.
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