Financial Daily from THE HINDU group of publications
Wednesday, Jun 29, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jun 29, 2005 |
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Stock Markets Markets - Commentary Columns - Sensor Steel, oil stocks key losers in plunging market Shanthi Venkataraman
AFTER a rather tepid gain on Monday, the markets nose-dived on Tuesday on the back of profit booking. The decline was witnessed across the board, though steel and oil stocks were prominent losers. With oil prices ruling at $61 per barrel, a bearish mood set into the market even as the stocks of Reliance companies cooling off. The BSE Sensex declined 102.1 points from its record high of 7151 points to close at 7049 points. The Nifty declined about 30 points or 1.4 per cent to close at 2169.85. Mid-cap and small-cap stocks, too, were out of favour. The CNX Midcap 200 dropped 1.8 per cent, while the BSESMLCAP declined 1.7 per cent. The Sensex did open on a mildly positive note. It rose to reach an intra-day high of 7175 in the first hour of the trading session. It, however, rapidly lost steam thereafter. The breadth of the market was negative, with close to 80 per cent of the stocks trading on the BSE registering a decline. Selling of index heavyweights Reliance, Infosys, ITC, Tata Steel and Tata Motors dragged the benchmark index to the negative territory. Other stocks of the Reliance group - Reliance Energy, IPCL and Reliance Capital - also declined. Prominent gainers amid the widespread selling were ACC, TCS and HDFC. Other major gainers for the day include Container Corp, Union Bank of India, Taj GVK, Praj Industries and Aarti Industries. Steel stocks bore the brunt of selling pressure on Tuesday. Concerns that the softening of steel prices at the global level may force steel makers to announce another cut in steel prices could explain the decline in stocks. Besides stocks of leading players such as Tata Steel and SAIL, the stocks of Jindal Vijayanagar, Jindal Stainless, Essar Steel and Lloyd Steel were among the prominent losers. While most sectors took a beating on Tuesday, there was plenty of stock -specific action. Prominent gainers for the day include IL&FS Investmart, Prime Securities and Zodiac Clothing. The stock of IL&FS Investmart rose about 10 per cent to close at Rs 102.7. The company is to come out with a seasoned offering shortly. The stock of Prime Securities gained smartly on the back of its proposal to buy back its shares at a price of Rs 50. The stock spurted 13.4 per cent to close at Rs 39.40. The stock of Zodiac Clothing shot up 10 per cent, hitting its upper circuit filter, despite declaring a fall in profits in FY05. The company is to consider offering bonus shares, which appear to have given a boost to the stock. The stock of Punjab Alkalies also soared about 10 per cent to close at Rs 63.30. The Punjab Government is to consider selling stake in the company. The stock of Indra Gas put on 2.7 per cent to close at Rs 101.20. The gains come on the back of the company hiking prices of natural gas by seven per cent. IPCA Labs was another prominent gainer, even as it declared a drop in profit during the fourth quarter. The stock gained Rs 6 to close at Rs 357.55. The stocks of MSK Projects and Gammon India stayed out of market action, even though they both bagged new orders. The stock of MSK projects ended the day almost flat. The stock of Gammon India dropped Rs 8.7 to close at Rs 263.40. Momentum stocks such as Pantaloon Retail, Astra Microwave and Rajesh Exports stayed out of the limelight. The stock of Gokaldas Exports, which has been losing steam over the past couple of trading sessions, also ended the day in the negative territory.
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