The Hindu Business Line : Tech stocks save the day

Highlights
Cement takes a breather
Sugar stocks continue their upward trajectory
Plastic processors shed value
Significant activity in the IT sector

Though the markets opened on a strong note, volatility hogged the markets. Significant selling pressure in auto and cement stocks appeared to pull down the markets into the red. However, gains in IT stocks helped the bellwether indices close on a positive note.

The broad market trend was bearish with losers outnumbering the gainers in the midcap and small cap space. The advances-declines ratio was tipped in favour of the losers at about 9:11.

Buzzing stocks

Reliance Natural Resources and its recently listed cousins continued to corner a large section of the activity. IT stocks such as Aurionpro Solutions, Sasken Communication Technologies, Paradyne Infotech and California Software attracted buying interest. Pantaloon Retail, GHCL, Triveni Engineering, Adlabs Films and GTL also were in the limelight.

Sector watch

Cements stocks appear to have taken a breather on the back of sharp gains over the last couple of sessions. India Cements, Madras Cements shed more than 1.5 per cent each. Frontline stocks Grasim and Gujarat Ambuja also shed value. Small cap stocks were the most hit. Chettinad Cement Corporation, Shree Cements, Prism Cement and Mangalam Cement shed more than 2 per cent each. Quite a few stocks such as Dalmia Cement (Bharat) and Birla Corporation bucked the trend.

Sugar stocks made a smart move. Top gainers in the sugar sector included Bajaj Hindustan, Balrampur Chini, Dhampur Sugar Mills, Oudh Sugar Mills and Shree Renuka Sugars. However, prominent South-based sugar stocks - Bannari Amman Sugars and Ponni Sugars (Erode) shed value.

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A sideways movement continues to languish in the tea sector. Tea garden stocks, which are quoting at steep valuations on a historical basis, have attracted interest among both bulls and bears. Sharp appreciation followed by a sharp correction has been the pattern among these stocks for over the past two weeks. This pattern continued into Monday's trade with most stocks shedding value. Duncans (on the NSE), Warren Tea, Williamson Tea Assam, Jayshree, Harrisons, Goodricke, Bombay Burmah and Assam Company shed more than 2.5 per cent each.

Plastic processors shed significant value. Stocks such as Nilkamal Plastics, Supreme Industries, Wim Plast, VIP Industries, Jain Irrigation and Sintex Industries were among those that declined.

Event-specific action

Madhucon Projects recorded heightened interest. The company, which announced that it, had bagged an order worth Rs 330 crore from NHAI for laying of roads in Tamil Nadu on a BOT basis closed with a 2.7-per cent gain.

Infotech Enterprises attracted significant buying interest on announcements that its subsidiary in Europe has entered into a tie up with GE Energy geospatial data management services for Swisscom Fixnet, Switzerland. The stock recorded a new 52-week high before closing at Rs 572.8.

Prominent gainers/losers

FCI OEN Connectors, Diamines & Chemicals, Rayban Sun Optics, Ennore Foundries, Birla Power Solutions and Ruchi Soya featured among the gainers. Indo Gulf Fertlisers, Patel Roadways, Crew B.O.S. and Archies featured in the losers list.