The Hindu Business Line : ONGC, HDFC, HDFC Bank ensure index gain

DRIVEN by gains in key index stocks such as ONGC and the duo of HDFC and HDFC Bank, the benchmark Bombay Stock Exchange (BSE) Sensex rose by 33.13 points to finish at 9372.30 points. The Nifty rose 12.35 points to end at 2835.25 points. Gains in the indices came after two consecutive days of ending in negative territory.

Trading during the day was characterised by choppiness. The Sensex opened higher by about 60 points compared with its close on Wednesday, and scaled an intra-day high of 9413.70 points.

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The Sensex lost steam thereafter and even slipped into the red during trades in the afternoon. It then recovered subsequently to finish the day sporting gains.

Even as crude prices rose in international markets, if there was one company that was not complaining, it was ONGC. The stock gained Rs 29.80 to finish within striking distance of the Rs1,200-mark. About 3.5-lakh shares were traded on the counter.

The duo of HDFC and HDFC Bank also chipped in with their bit to prop up the Sensex. The former put on Rs 20.20 to settle at Rs 1,289.40 on the back of trading volumes of 13-lakh shares; the latter moved up smartly by Rs 17 to end the day at Rs 742.65, on trading volumes of 1.25-lakh shares.

Moving on to the losers in the Sensex, the outcome of the Lipitor patent challenge case continued to act as a drag on the Ranbaxy stock, as it shed Rs 6.15 to end at Rs 358.4. Reliance was another prominent loser, responsible for the highest drop among all the index constituents. Even as it announced January 25, 2006, as the record date for the proposed demerger, the stock shed Rs 4.85 to end at Rs 855.10. Trading volumes on the counter were at 18-lakh shares.

Outside of the indices, VSNL, CMC, IBP and IPCL were a few stocks that moved up on the back of a news development. The street reacted positively to a media report that stated that the Government may consider selling the stake it holds in these companies.

In event-specific price action:

* Repro had a smart listing with gains of about 40 per cent. This printing and publishing services company had offered shares at Rs 235 and the stock closed at Rs 165.

* Kernex Microsystems — a recent listing — lost about 10 per cent, as initial investors appeared to be taking profits.

* Provogue was marked up on news flow of acquisition of a Prozone Enterprises, which will now be its 100-per-cent subsidiary.

* Ginni Filaments shed value ahead of its seasoned equity offer closing for subscription today; the offer has received a lukewarm response from investors so far.

* Ucal Fuel maintained a firm undertone aided by the completion of sale of its 30 per cent stake in the equity in Engelhard Environmental Systems for Rs 28 crore.

* Thomas Cook edged higher driven by the imminent open offer by Dubai Financial, as there has been a change in control. Dubai Financial has acquired an effective stake of 60 per cent in Thomas Cook (India). Upside may be capped, as the open offer price is likely to be linked to the recent price trends.

* Television Eighteen gained about five per cent on announcement of a stock split and swap ratios for the demerger proposed by the company earlier.

* Markets appear to have take a favourable view of the expansion plans with an outlay in excess of Rs 1,500 crore announced by Mahavir Spinning, as it gained about five per cent.

Momentum stocks that maintained an upswing included Zenith, Zodiac JRD MKJ, K.M. Sugar, Jaiprakash Associates and Hexaware.