The Hindu Business Line : Relentless buying keeps up northbound journey

Markets opened on a firm note on Wednesday. Relentless buying activity saw the Sensex hitting a century and touching the day's high of 9,664.9, before settling at 9,648.1 - up 108.7 points. In the broader markets, the S&P CNX Nifty added 21 points to 2,904.4.

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Firm trends across the Asian and US markets, coupled with continuing FII inflows also boosted market sentiments. Net inflows of Rs 478 crore from overseas investors on Monday showcased confidence of FIIs.

Stocks in the BSE 30 witnessed plenty of action. Gujarat Ambuja Cements, Satyam Computer Services and HDFC Bank made smart gains. Tata Motors gained 2.1 per cent to Rs 6,58.7. The company's vehicle sales for December rose by 11 per cent compared to the same period in 2004. ITC climbed 2.5 per cent to Rs 146.8 after reports that the company plans to expand its network of Internet kiosks used by farmers to trade agricultural goods.

ONGC, Tata Steel and Hindustan Lever, however, lost ground and closed in the red.

Banking, cement, pharma and auto stocks evinced buying interest throughout the day.

Cement stocks built a firm foundation. Increase in cement prices in the western region, coupled with strong dispatch figures, saw intense buying action in the sector. India Cements rose 5.4 per cent to Rs 112.4. Birla Corporation and Mangalam Cements also cemented gains of about 3 per cent.

Auto stocks continued to run in top gear on the back of impressive monthly sales figures.

Bajaj Auto, TVS Motor and Scooters India closed in the green. Mahindra & Mahindra rose 1.1 per cent to Rs 524. The company has acquired a stake of 98.6 per cent in the UK-based Stokes Group, an auto forgings company.

Banking indices at the NSE and BSE surged by 2 per cent. Bank of Baroda, UTI Bank, Bank of India and Union Bank of India surged ahead.

ICICI Bank gained 1.1 per cent to Rs 613.8. The bank plans to issue foreign currency bonds to fund expansion of its international operations.

IndusInd Bank failed to weather challenges from the bear and declined on selling pressure.

Select pharma stocks witnessed active buying. J.B. Chemicals & Pharmaceuticals gained 10 per cent to Rs 114.8. The stock has gained 17 per cent in the last two days. Jubilant Organosys climbed Rs 19.6 to Rs 1,090.8. The company has entered into an agreement to provide research services for drug discovery to the US-based Eli Lilly & Co.

Capital goods stocks appear to carry forward the strong gains made in 2005. Amforge Industries, KEC International, Dredging Corporation and Aban Loyd were in the limelight and closed with solid gains.

Gems and jewellery stocks failed to glitter. Suashish Diamonds, Su-Raj Diamonds, Classic Diamonds and Goldiam International closed with declines.

Surging crude oil prices did not deter oil stocks from moving northward. Hindustan Petroleum, Indian Oil Corporation and Bharat Petroleum closed in the green.

New listing

PVR rose 32 per cent on its trading debut. The stock, which was offered at Rs 225 closed at Rs 295.9 on the BSE.

Ramsarup Industries also made a debut and closed at Rs 83.4 as against the offer price of Rs 60.

Stock-specific action

Mid-Day Multimedia rose 1.4 per cent to Rs 106.3. The company plans to sell a stake in its radio venture to a unit of British Broadcasting Corporation.

NDTV gained Rs 8.5 to Rs 211.1 after reports that it has bought a stake in a closely held company that runs FM radio channels under the Red FM brand.

Oriental Bank of Commerce, IFCI, Salora International and MphasiS BFL were prominent gainers among the Nifty constituents. Dabur India, Aventis Pharma, Patni Computer Systems and Asian Paints were conspicuous losers.