The Hindu Business Line : Auto, banking, consumer goods, energy stocks gain

THE markets bounced back on Wednesday after two successive sessions of losses. The BSE Sensex gained 103.4 points or 1.2 per cent to close at 8638.3. After a cautious opening, markets gained strength with the Sensitive index reaching a high of 8649.7. Buying interest was evident across sectors such as auto, banking, consumer goods and energy.

The S&P CNX Nifty also bounced back with a gain of 35.8 points or 1.4 per cent to 2608.6.

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The positive sentiment in the domestic market appeared to be in line with optimism in the global markets. Signal from the US Federal Reserve of an impending end to the US Central Bank's rate hikes fuelled a rally in the US markets yesterday. FIIs continued to be bullish and contributed to net inflows of Rs 424 crore on November 21.

Wipro led the pack of gainers among the basket of BSE 30 (Sensex). Gujarat Ambuja Cements, Maruti Udyog and ITC followed suite. Ranbaxy was a prominent loser among the front line stocks. The stock fell 2.9 per cent to Rs 366. A US appeals court yesterday upheld a ruling that blocks Ranbaxy from selling a generic version of Pfizer's drug for blood pressure.

Tata Steel declined by 2.4 per cent to Rs 342.6. The company is in talks to acquire an 80 per cent stake in South African steel maker Highveld Steel & Vanadium Corp.

Auto stocks rallied smartly on expectations of better sales figures. Mahindra & Mahindra, TVS Motors and Hero Honda moved northwards. TVS Motors was in the news for its plan to build a factory in Indonesia. Hindustan Motors, Escorts and Rane Engine, however, ended in the red.

In the media space Mid-Day Multi Media was a clear winner. The stock flared up by 19.3 per cent to Rs 98.7. The company is in talks with the British Broadcasting Corp and three other rival media companies to sell a fifth of its radio venture. TV Today also joined the rally and added Rs 11 to close at Rs 103.3. Zee Telefilms and Deccan Chronicle were key losers in the space.

Banking stocks made a strong comeback. Both the BSE and NSE, banking indices gained over 1.6 per cent. UTI Bank, State Bank Of India, Indian Overseas Bank and HDFC Bank led the bull rally in the sector. Allahabad Bank, Andhra Bank and Kotak Mahindra Bank failed to evince interest and stayed out of rally.

FMCG stocks witnessed fresh buying interest. Hindustan Lever, Tata Tea and Nirma were aided by the bulls to make smart gains.

In the mid cap segment, Bata, Parry Agro and Heritage Foods evinced market interest while Jindal Photo, Dabur India and United Breweries ended on a weak note.

In the energy sector, ONGC gained Rs 26.5 to Rs 1,020. ONGC Mittal Energy has signed an agreement with the Nigerian Government to invest in oil, power and refining in Nigeria. Reliance Industries, Gujarat gas Company and GAIL (India) also closed in the positive turf.

Stock specific action

Jindal Saw declined 4.2 per cent to Rs 372.2. The company's fourth-quarter profit fell by 4.7 per cent to Rs 24.1 crore.

HCL Technologies added Rs 5.3 to Rs 502.3. The company plans to sign an agreement with Dutch insurer Aegon NV to provide software services.

KEC International has won contracts worth $76.5 million (about Rs 340 crore) along with a Spanish company, to build transmission lines and power stations in Ethiopia. The stock rose marginally by 0.7 per cent to Rs 257.

MTNL declined 3.5 per cent to Rs 120.5 after Citigroup downgraded the stock's rating citing reduced business from its fixed-line operations.

Sintex, Sandesh, Tata Power, Jaiprakash Associates and Bank Of India were prominent gainers among the Nifty constituents while LIC Housing Finance, IDBI, Hindustan Petroleum and Dharani Sugars and Chemicals were conspicuous losers.

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