The Hindu Business Line : Profit-booking trims Sensex gains

Profit-booking during the second half of the session, however, pulled the benchmark index to a low of 8661.6 before adding 25 points to close the session. The Sensex has recovered over 1000 points in the last three weeks. The S&P CNX Nifty closed at 2620 - up 16.1 points or 0.6 per cent.

Positive rally in the Asian and global markets coupled with US crude oil reaching its lowest close since June 15 may have spurred the domestic market sentiments.

Cement and auto stocks witnessed fresh buying interest while the banking stocks failed to sustain interest and succumbed to selling pressures.

Among the frontline stocks Gujarat Ambuja Cement, Associated Cement, Bajaj Auto and Maruti Udyog were prominent gainers.

Bajaj Auto surged by 3.6 per cent to Rs 2,000. The stock touched a record of Rs 2,019 during the day. The company plans to invest Rs 200 crore to increase capacity to three million units from 2.4 million units now. Dr Reddy's Laboratories, Tata Power, ICICI Bank and NTPC bucked the trend and ended in the red.

Stocks in the mid-cap space saw mixed reaction. The BSE and NSE Midcap indices rose by about 0.5 per cent. Kirloskar Brothers, HMT, Indian Hotels and Jaiprakash Associates made smart gains, while the bears raided Monsato, Sintex Industries and Geodesic Information.

Cement stocks were in the limelight on Friday. Kakatia Cement surged ahead with a gain of 11.2 per cent. Grasim was up 2.1 per cent to Rs.1284.

Drop in crude oil prices induced buying interest in auto stocks. BSE Auto index was the biggest sectoral gainer.

In the automobile space Tata Motors, TVS Motors, Hero Honda and Ashok Leyland made significant gains. Other auto stocks that made the northward journey include Lumax Industries, Shanti Gears and Pricol.

Hotel stocks kindled market appetite for the day. Indian Hotels gained over 4 per cent. Hotel Leelaventure and Oriental Hotels also made smart gains.

In the metal space, Mahindra Ugine, Sterlite industries, Jindal Steel and Uttam Galva ended in positive turf while Hindustan Zinc, SAIL and Kalyani Steel closed on a weak note.

Capital goods stocks also evinced selective buying interest. BHEL, Thermax and Areva were key gainers.

Thermax added Rs 22 to Rs 904.4. The company on Thursday announced doubling of its second quarter profit. It has also bagged two orders worth Rs 179 crore from the cement and steel industry.

After a brief rally, banking stocks switched back to profit-booking mode. UTI Bank, Canara Bank, Bank of Baroda and State Bank of India were key losers for the day.

In the pharma space, Cipla, Strides Arcolab and Aventis Pharmaceuticals rallied northwards while Wockhardt and Pfizer ended on a weak note.

Stock-specific action

Patni Computers added Rs 5.5 to Rs 472.2. The company expects to raise $138 million (Rs 620 crore) through issue of American Depository Receipts in order to fund expansion plans.

Centurion Bank of Punjab climbed 10.7 per cent to Rs 20.6. The Reserve Bank of India has allowed further overseas investment in the company after the investment limit dropped subsequent to merger of Centurion Bank with Bank of Punjab rose by 2 per cent to Rs 168.5. The company plans to buy back 10 per cent of its equity at Rs 210 per share.

Among the Nifty constituents Jet Airways, Glaxo, Sirpur Paper Mills and Aventis Pharmaceuticals were key gainers while HCL Technologies, GAIL, IFCI and Trent were conspicuous losers.

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