The Hindu Business Line : Oil, gas stocks take a beating as Sensex tumbles

Pointers
Markets take a breather after nine-day rally
Oil, metals and consumer durables were sector losers
Reliance Petroleum makes its debut

After rallying for nine straight days, the markets took a breather on Thursday's trading. The stock markets opened on a weak note, partly guided by the Federal Reserve's decision to hike the federal funds rate to 5 per cent, its highest level in five years.

This weakness persisted right through the day, with the full bearish force being felt in the last hour of trading.

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The market breadth remained muted, with the advances to declines ratio at 0.6, with only 970 stocks appreciating in value compared with 1575 stocks logging declines.

SECTOR ACTION

All the sectoral indices closed in the red.

The sectors that under performed the broad markets were oil and gas, consumer durables and metals.

In the oil and gas sector, the key losers during the day were Mangalore Refineries, Essar Oil, apart from Indian Oil Corporation, HPCL and BPCL. As the prospects of a possible petrol hike receded, with growing opposition from the Left parties, it appeared to take a toll on oil stocks.

Reliance Industries fell Rs 61.6 or 5.26 per cent to Rs 1,108.5 on a sell-off by funds.

Among the metals pack, the significant losers were Tata Steel, JSW and Essar Steel. The Hindustan Zinc juggernaut continued to roll on with the stock recording a 2.3 per cent rise to Rs 1,017.35, after showing tentative signs of cooling off earlier in the week.

The sectors that bucked the trend were IT, FMCG and capital goods. In the capital goods segment, the gainers were Areva T & D, Siemens, Greaves Cotton and Praj Industries.

STOCK SPECIFIC ACTION

Havell's India marched up by 7.5 per cent during the day's trading. The run-up has to be seen in the light of the company's plan to convene a board meeting on May 18 to consider issue of ADR / GDR or FCCB issue.

KLG Systel was also in the limelight with the stock rising by 10 per cent. At its recent EGM, a special resolution for allotting warrants on a preferential basis at Rs 106 to the promoters has been approved by the shareholders. Among the software stocks, the other significant gainer was KPIT Cummins, which moved up by 6.4 per cent.

Reliance Petroleum made a strong debut, with the stock listing at around Rs 100 at the BSE and closing the at Rs 85.45, a 42 per cent rise over its offer price of Rs 60. However, Reliance Industries was one of the significant losers in the Sensex.

BF Utilities continued to sustain its realty play rally with the stock appreciating by 5 per cent to Rs 2,900. Over the past month, the stock price has doubled on accounts of its investment in Nandi Infrastructure Corridor Project

The other key gainers were India Infoline, Kamadhenu Ispat and Adani Exports. Some of the stocks on the losers list were MRPL, Bombay Rayon and Tantia Constructions.