The Hindu Business Line : Uptrend in Sensex continues as banking, oil stocks shine

In a relentless rally, the markets continued to march upwards. Despite concerns about valuations, the bullish trend appears to have strengthened. The expected steep correction is just not happening. The Sensex has been on an uptrend continuously for the last nine trading sessions gaining close to 760 points over the period.

Throughout the rally, metals, banking and auto stocks have been in the forefront. Oil stocks too gained momentum later.

Among the mid and small0cap stocks, stocks from the realty sector have been the star performers. Stocks such as Unitech and Ansal Properties have more than doubled in a short span of time and still continue to exhibit bullishness.

Sector-specific action

Tea counters strengthened on Wednesday on expectations that tea prices could firm up further as prices in Africa have been rising. Jayshree Tea, Harrison Malayalam, Mcleod Russel and Williamson Tea moved up sharply supported by good rise in volumes.

Banking stocks continued to march up on expectation of a strong offtake in credit growth. Banks have been gradually raising interest rates. SBI, ICICI Bank, HDFC Bank, Syndicate Bank, Allahabad Bank, Oriental Bank and Andhra Bank were among the banking stocks that attracted good buying interest.

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Metal counters such as Hindalco, SAIL, Tata Steel and Sterlite Industries showed strength. Global commodity prices have been zooming and metal stocks have been on a run for quite a while.

Stocks in the oil and gas space too are seeing a strong uptrend. Mangalore Refinery, Essar Oil, ONGC and Reliance Industries showed firm trends.

Mid cap cement counters showed some weakness. Mangalam Cement, Mysore Cements, Prism Cements lost in excess of four per cent.

Stock specific action

Trading volumes increased almost six fold in Goetze India on news that Federal Moghul, an American auto component major, is taking a stake in the company. The share price, however, remained almost flat on Wednesday after a sharp run up in the last few trading sessions.

Surya Roshni witnessed a strong rally after the company announced that it would be expanding its manufacturing capacity for compact fluorescent lamps. The stock is up 50 per cent in the last three trading sessions.

JM Financial has moved up sharply over the past few trading sessions on news that the company has allotted equity on preferential basis to institutional investors and Mr Azim Premji at Rs 639 per share. The stock is now quoting at Rs 800.

Sun TV too has been a hot stock over the last couple of days as DMK is expected to have a lead in the Tamil Nadu elections. Sun TV is associated with the DMK as 90 per cent of the company's stake is held by Mr Kalanidhi Maran, Union Minister Mr Dayanidhi Maran's brother.

BF Utilities is another stock that has been buzzing. The stock has roughly tripled since March end.

MRO Tek, GV Films, RayBan Sun Optics, PTC, IDBI, IFCI, Sunil Hitech Engineers, Eastern Silk, Welspun Gujarat Stahl, Super Spinning, Lanxess ABS, Archies, Bombay Rayon Fashions, GMR Industries, Suzlon Energy, West Coast Paper, Bharat Bijlee, Tata Power, Agro Tech Foods, Argo Dutch Industries and Thirumalai Chemicals are few stocks that attracted solid buying interest.

Losers include Saint Gobain, Greenply Industries, Loyd Electricals, Rane Madras, TIL, SB&T International, Finolex Cabels, Nestle and Voltas.