The Hindu Business Line : Oil, gas stocks in limelight as markets reach new high

Even as a heat wave grips parts of the nation, Indian stocks show no signs of cooling off. Heavy buying in index-heavyweight Reliance led the markets to a new high. Monday's rise marks the seventh straight gain. The Sensex has gained 3.5 per cent over the past week. Foreign money has been pouring in with renewed vigour since last week; FIIs pumped in more than Rs 1,000 crore in equity on Monday. Oil stocks, not quite the usual market favourites, were in the limelight, while banking stocks took a breather.

Buzzing stocks

Buying interest perked up in the small-cap space. The stocks of Bombay Burmah Trading, GTN Industries, Chemfab Alkalis, Crew BOS and BSEL Infrastructure hit their upper-circuit limit of 20 per cent. Unitech gained five per cent on news that its board will consider splitting its stock and offering free shares. The stock of Punj Lloyd gained on reports that it might acquire a Singapore-based engineering and construction company.

The stocks of Gruh Finance, Goetze India, Ansal Properties, Crompton Greaves and Kalpataru Power were among those that were red-hot on Monday.

Sector focus

Oil and gas stocks stole the show on Monday. Reliance gained five per cent on reports that it would acquire a purified terephthalic acid producer in Pakistan. The stock of Mangalore Refineries gained close to six per cent to end at Rs 55.1. Other prominent gainers were Petronet LNG, Chennai Petroleum and ONGC.

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After a tearing run last week, banking stocks paused for breadth. HDFC Bank, IOB, Vijaya Bank, Corporation Bank, Syndicate Bank and UTI Bank were prominent losers. Union Bank, Canara Bank and IndusInd Bank, however, bucked the trend.

Several second and third-rung textile stocks were in fashion on Monday. The stock of Maral Overseas hit the upper circuit limit of 20 per cent. Soma Textiles, Patspin India, JBF Industries, Cheslind Textiles and Winsome Yarns were actively traded and ended the day in the positive territory. The stocks of Gokaldas Exports, Malwa Cotton and Nahar Exports also evinced strong investor interest.

The pharmaceutical sector witnessed some selective buying. AstraZeneca Pharma, GlaxoSmithKline Pharma and Glenmark Pharmaceuticals were notable gainers.

Stock-specific action

The stock of Shreyas Shipping jumped 20 per cent on the back of news that it had won an order from Reliance to carry 60,000 metric tonnes of polymers to Pakistan.

The stock of NIIT appreciated by Rs 25.9 to close at Rs 387.40. The company has acquired a controlling interest in Room Solutions, a $25-million UK-based insurance solutions provider.

The stock of Glenmark Pharmaceuticals rose nearly 10 per cent or by Rs 31.5 after it announced that its US unit has signed an agreement with Aspen to make and sell three pain management drugs in the US.

The stock of Tata Steel gained marginally after the company raised prices of hot-rolled coils by as much as Rs 1,000 per tonne and galvanised products by Rs 2,000 per tonne.

Prominent losers amid the buying action include Plethico Pharma, Solar Explosives, Gangotri Textiles, Provogue, Geojit Securities, Bombay Dyeing, Man Industries, Aegis Logistics, Blue Dart Express, Suzlon Energy and Emco.