The Hindu Business Line : IT, pharma, auto record sharp gains

IT was a day marked by heightened bullish activity, which pushed the benchmark indices to record highs. Spurted by the Government's positive outlook on economic growth, markets recorded a spectacular rise. The benchmark Sensex, which had touched the 9000-mark on several occasions in the last month, closed above that level for the first time.

While it gained 160.9 points at its close of 9067.3, the broader Nifty closed 49.7 points higher at 2756.5.

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After a flat closing on Thursday, markets, on Friday, opened on a positive note. Across-the-board buying added buoyancy to the markets and propelled them to higher levels. Stocks from IT, pharma, auto and capital goods recorded sharp gains. A good number of stocks from the mid-cap and small-cap sectors also witnessed widespread market interest.

Among the index heavyweights, Reliance advanced by 2.1 per cent to Rs 863.8 after a Court approved a reorganisation plan for its businesses, setting aside a petition filed by a shareholder.

The undertone in the market was largely bullish. This was reflected in the advances to decline ratio of 1.9:1, tilted heavily in favour of the advances. Among the sectoral indices on the BSE, Capital Goods index was an outperformer with a gain of over two per cent.

In the IT sector, Polaris was a significant gainer whose stock surged by 9.4 per cent. Others that closely followed included Geometric Software, Aptech, Hexaware, iGATE Global and Mastek. Frontline IT stocks such as Infosys, Wipro and Satyam and TCS trailed their counterparts in the second-rung category, as they ended with marginal gains.

Most stocks in the pharmaceutical sector had a fine outing. Shasun Chemicals, which flared by 12.7 per cent topped the list of gainers. Following RBI's announcement on Thursday that foreign investors will be allowed to buy 49 per cent equity in Shasun Chemicals, the stock gained 6.1 per cent at its close. Dabur Pharma, Elder Pharma, Aurobindo Pharma, Ranbaxy and Sun Pharma also recorded healthy doses of gains. Novartis, Matrix Lab, Ajanta Pharma and Abbott India, however, failed to buck the trend. The stocks closed marginally lower.

Among FMCG stocks, counters of Britannia, Gillette, Radico, Tata Tea and ITC witnessed active buying interest. Few of them that failed to attract the bulls included CCL Products, Liberty Shoes, Shaw Wallace and Nestle among others.

A good number of metals stocks managed to add sheen to the markets. Buoyed by strong bullish sentiment, stocks of Kalyani Steel and SAL Steel rallied sharply, gaining about 6.5 per cent on an average.

Others that closely followed included Maharashtra Seamless, Tata Steel, Essar Steel, Hindalco and Uttam Galva. Jindal Saw, Hindustan Zinc, Vesuvius and Gujarat NRE Coke, however, failed to put up a smart show.

Auto and auto-ancillary stocks sported a positive look. Hero Honda, Bajaj Auto, Maruti and Eicher recorded respectable gains. Jay Bharat Maruti was the biggest gainer, whose stock shot up by 19.9 per cent.

Bharat Forge gained 2.1 percent at its close. The auto-parts maker on Thursday announced that it would form a venture with China Faw Group Corp as part of its plan to expand in China. CEAT, Asahi India and Ashok Leyland ended with marginal losses.

Capital goods counter also witnessed significant bullish activity. Stocks of Alfa Laval, Elgi Equipment, Siemens, Praj Industries, Alstom Projects and BHEL netted off handsome gains.

Barring a few exceptions of Kotak Bank, UTI Bank and Union Bank, a large number of banking sector stocks ended with moderate gains.

Notable gainers on the Nifty were ABB, Aegis Logistics, Aftek Infosys, Bombay Dyeing, Gokaldas Exports, IVRCL, Madhucon Projects, Nelco, Pidlite Industries, Thermax, Thomas Cook, VSNL and Visaka Industries among others.

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