The Hindu Business Line : Pharma gains, tea stocks advance further

IT was yet another day of volatile trading in the bourses on Thursday. Markets opened on a positive note even as the Sensex reached an intra-day high of 10195.4. However, profit-booking soon led to the bellwether index closing flat at 10134.3, up by 11 points.

Positive cues from overseas markets appeared to have little influence on the domestic market. The decline in confidence was also reflected in the net buying by FIIs. Overseas investors sold Rs 502 crore more shares than they bought on February 14. In the broad markets, the S&P CNX nifty also ended flat at 3021.6.

Click here for table

Pharma stocks were in the highlight among the basket of BSE 30. Dr. Reddy's Laboratories put up a spectacular rally and surged by 9.4 per cent to Rs 1,282. The company has bought Betapharm of Germany for 480 million euros. This acquisition will give the company an entry into Germany. It peer Ranbaxy, which withdrew from the race to bid for the German company lost 3.5 per cent to Rs 432.

Tata Motors, Hero Honda and Tata Power also made smart gains while ITC, Hindalco and Bajaj Auto ended lower.

Sectors that saw action: In the oil sector, refinery scrips refused to be bogged down even as oil traded close to an eight-week low. IOC surged 4.5 per cent to Rs.557. Hindustan Petroleum, Bharat Petroleum and Kochi Refineries closed on positive ground.

Tea stocks advanced further on the back of tea prices reaching a seven-year record. Stocks of domestic players rose as the benchmark tea price in Malawi, Africa jumped by 22 per cent. McLeod Russel climbed 4.2 per cent to Rs.152. Harrisons Malayalam, Jayshree Tea & Industries and Williamson Tea also closed in the green. Tata Tea, however, succumbed to selling pressure.

Frontline cement companies benefited from increase in sales for January. ACC rose 1.5 per cent to Rs 586.8. Grasim Industries added Rs 52 to Rs 1,697.5.

Aluminium stocks reacted to decline in LME metal prices. Hindalco, National Aluminium Company and Madras Aluminium were key losers.

FMCG stocks appeared to have lost steam. Nirma, Dabur and Marico failed to weather challenges from the bear and closed lower.

Stock specific action:

- Gujarat State Petronet made its trading debut at the Mumbai stock exchange. The stock, which was offered at Rs 27 climbed 49 per cent to Rs 40.3. The company has raised Rs 373 crore through an initial public offer.

- GAIL announced an interim dividend of Rs 2 per share. The stock fell 1.5 per cent to Rs 281.6.

- McNally Bharat Engineering added Rs 6.3 to Rs 133.2 after it bagged an order worth Rs 134 crore from Vedanta Resources Plc to construct anode plants in Orissa.

Pointers to Friday's trade

- Larsen & Toubro plans to list its software unit - Larsen & Toubro Infotech within two years from now. The IT unit has witnessed growth in revenues of over 35 per cent for the nine months ended January 2006 and has also improved its operating margins over the period.

- Recently listed FM radio entertainment provider Entertainment Network, plans to set up two more radio stations in the country within the next one year. The company had earlier won the right to set up FM stations in 3 cities through auctions for licenses.

- Hindalco has again raised aluminium prices. The prices were raised by Rs 2,500 a tonne. The company has raised prices by 13 per cent since January.

Among the Nifty constituents, SAIL, Jet Airways, TVS Motor, Bank of India and Mangalam Cement were promiment gainers. MTNL. UTI Bank, Pfizer, Indiabulls Financial Services and Aventis Pharma were conspicuous losers.