Business Daily from THE HINDU group of publications
Wednesday, Jun 21, 2006
Business Daily from THE HINDU group of publications Wednesday, Jun 21, 2006 |
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Stock Markets Markets - Commentary Columns - Sensor Shanthi Venkataraman
Pointers Provisional FIIs net sales at Rs 205 crore Mid-cap and small-cap stocks buoyant Market breadth positive Banking stocks bear the brunt
The relief rally that helped the Sensex gain close to 12 per cent in just three trading sessions came to a halt on Tuesday, as foreign investors once again turned net sellers in the market. Provisional estimates suggest that FIIs on a net basis, sold equity worth a little more than Rs 200 crore. The Sensex, dragged by selling in the stocks of Reliance and ICICI Bank, fell by more than 200 points before recovering marginally to its close of 9822.5. Other prominent losers were Larsen & Toubro, Bajaj Auto, BHEL and HDFC. While large-caps came under pressure, there was buoyancy in the mid-cap and small-cap segment. The breadth of the market was, consequently, mildly positive, with 60 per cent of the stocks traded on the BSE ending in the positive territory.
Buzzing stocks
Enthusiasm appears to have returned to the mid-cap and small-cap space. After being on the receiving end for more than a month, with some stocks losing more than 40 per cent in value, mid-cap and small-cap stocks were among the prominent gainers. The stocks of TTK Prestige, Aptech and Bombay Rayon soared, adding between 15 and 20 per cent to their previous day's close. The stocks of Aegis Logistics, Andhra Cements, GIC Housing, KRBL and Shriram Overseas were other prominent gainers.
Sector focus
Banking stocks took a beating on the back of fears of a slowdown in incremental credit and narrowing spreads. The stocks of Punjab National Bank and Indian Overseas Bank lost about 5 per cent each. UTI Bank and HDFC Bank also ended in the red. The stock of Allahabad Bank, however, attracted investor interest, gaining about two per cent. Although the BSE Healthcare index showed the least decline, large-cap pharmaceutical stocks faced the heat. The stocks of Dr Reddy's, Cipla, GlaxoSmithKline Pharma and Sun Pharma witnessed selling pressure. There was, however, selective buying in capital goods stocks. The stocks of Areva, Bharat Earth Movers, Bharat Electronics, Esab India and Praj Industries were the day's favourites.
Stock- specific action
The listing blues continue, as IPOs bear the brunt of bad timing. Prime Focus made its debut at the bourses, only to list below its offer price of Rs 417. It ended the day 22 per cent lower at about Rs 325. The stock of Jet Airways was volatile, a day before the expiry of its extended deadline for the takeover of Air Sahara. Falling steeply in the early part of the trading session on fears that its takeover of Sahara may not take place, it bounced back to close 1.5 per cent higher, after the management clarified that it was still awaiting regulatory approval. Geometric Software jumped about 11 per cent. The company's new agreement with IBM will expand their alliance to include designing, analysing and managing client's products. McNally Bharat Engineering gained about 7 per cent. The company has bagged a Rs 177 crore order from Neyveli Lignite. Era Constructions spurted by its daily limit of 5 per cent on the back of an order from National Aluminium. Madhucon Projects received a more lukewarm response for its Rs 340 crore offer from NHAI, gaining only marginally.
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