The Hindu Business Line : Market volatile; capital goods, metal stocks go red

Trading highlights
Frontline stocks finished a tad better
Oil marketing companies surge ahead buoyed by announcements of hikes in fuel prices
Cement stocks declined amidst concerns of a reduction in cement prices

The markets were a mixed bag on Thursday. While frontline stocks inched their way northwards, mid-cap and small-cap appeared to have taken a breather. Many capital goods and metal stocks were subject to negative sentiment. Stocks in the oil and banking sectors closed with gains in a volatile market. The advances-declines ratio reflected a modest bullish sentiment that prevailed in the market.

Buzzing stocks

Retail stocks accompanied by real estate play such as Bombay Dyeing and Unitech were buzzing with activity. Quite a few telecom players such as Himachal Futuristic and Tata Teleservices also attracted significant interest in the market.

Sector watch

Announcements by the petroleum and finance ministries of an imminent hike in petrol, diesel and LPG prices appeared to have gone down well with market participants. Oil marketing companies drew significant buying interest in the markets. BPCL was among the top gainers. Accompanied by a three-fold rise in volumes, the stock closed in the positive territory with an 8 per cent gain. Reliance and HPCL also gained about 4 per cent each. IndianOil, GAIL and CPCL also closed with gains. Conspicuous losers in the oil and gas sector were ONGC and Essar Oil.

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The banking sector continued its buoyant trend; the sector-oriented index registered a gain for the fifth straight day. The gains were largely driven by a 17 per cent gain in Kotak Mahindra Bank. Syndicate Bank, Union Bank, UCO Bank, Corporation Bank, Bank Of India and Dena Bank registered considerable gains. However, a few public sector banks shed value. HDFC Bank, ICICI Bank and Centurion Bank of Punjab were among the top gainers in the private sector.

Widespread declines were registered on the counters of prominent metal stocks. Frontline stocks in the aluminium sector — Hindalco, Madras Aluminium and National Aluminium lost more than 2 per cent each. A similar trend could be gauged in the steel sector with many frontline stocks closing in the red. Other losers in the steel space included Kirloskar Ferrous, National Steel Agro, Southern Iron, Bhushan Steel, Uttam Galva, Vesuvius and Kalyani Steel. Sesa Goa was among the prominent stocks to buck the trend, and the stock closed with a 7 per cent gain.

Event-specific action

Bank of Maharashtra was subject to selling pressure with the bank having failed to meet market expectations, volumes surged by about 5 times. A positive sentiment in the banking sector appeared to have curtailed declines on its counter with stock dipping by about 3 per cent.

Gainers and losers

GMR Industries, Adani Exports, Premier, and SREI Infrastructure were among the top gainers on Thursday. Prominent losers included stocks such as Sun Pharmaceuticals, Rashtriya Chemicals and India Cements.