Financial Daily from THE HINDU group of publications
Saturday, Mar 25, 2006
Financial Daily from THE HINDU group of publications Saturday, Mar 25, 2006 |
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Stock Markets Markets - Commentary Columns - Sensor SBI arms, power stocks lead bull charge Vidya Bala
Trading highlights Advance-decline ratio remains neutral Metal stocks evince buying interests FMCG counters move up
Bulls took firm control of the markets on Friday and showed strength till the close of session. The markets brushed aside sentimental concerns over the `office of profit' controversy. The Sensex posted its fifth weekly gain even as a majority of the Asian markets ended higher. Buying was, however, pronounced in the index stocks while stocks in the broad markets witnessed selling pressure. This was reflected in the advance to decline ratio remaining neutral. Optimism was seen in investment made by FIIs. Overseas investors were net buyers to the tune of Rs 301 crore on March 22.
Buzzing stocks
Hindustan Zinc and Hindalco continued their northward march on the back of hike in zinc and copper prices respectively. Prism Cement, Ind-Swift Laboratories, Bayer CropScience and McDowell were other stocks that saw heightened activity and ended with sharp gains. Mysore Cement, Assam Company and Ansal Infrastructure and Properties hit the upper circuit.
Sector focus
Although banking stocks ended on a mixed note, the Union Cabinet's approval allowing SBI to reduce stake in its subsidiaries to 51 per cent continued to have a positive impact on the subsidiaries. This may increase the liquidity in the stocks of the subsidiaries. While State Bank of Bikaner and State Bank of Travancore hit the upper circuit limit of five per cent, State Bank of Mysore was on fire, surging 20 per cent to close at Rs 6,578. Kotak Mahindra Bank, Union Bank of India, and ICICI Bank also ended in the green. Power stocks were fully charged on Friday. In the power generation space, CESC, Tata Power, and Reliance Energy gained ground while equipment makers Havells India, ABB, and Siemens also closed in the green. Increase in the pace of project implementation may see increased demand for power equipment. The metal space evinced fresh buying interest on the back of expectations that domestic companies would join Asian rival, Baoshan Iron & Steel, in raising prices as demand recovers. FMCG stocks firmed up. ITC, Tata Tea, Nirma, Dabur India and Britannia Industries were aided by the bulls to move to higher levels.
Stock-specific action
Jet Airways added Rs 7.6 to close at Rs 948.2. The airline will make a down payment of Rs 500 crore for its takeover of Sahara Airlines. The money will be returned if the takeover is not approved by the Government within three months. Tube Investments of India climbed five per cent to Rs 623.8. The company's board plans to split each share and declare a mid-year dividend. Nahar Spinning Mills plans to transfer its investment business to a new company. It will also consider merging group company, Nahar Exports, with itself. While Nahar Exports added 14 per cent, Nahar Spinning Mills surged 20 per cent to Rs 238. In the broad markets, Shiv-Vani Oil & Gas Exploration, Praj Industries, Shrenuj & Co, Bajaj Auto Finance and Berger Paints were prominent gainers. Patni Computer Systems, Bartronics, Reliance Natural Resources, RPG Life Sciences, and Compulink Systems were conspicuous losers.
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