The Hindu Business Line : Markets begin on positive note; remain range-bound

The markets began the week on a positive note, as anticipation of good earnings announcements stimulated buying interest in select index heavyweights. The Sensex advanced 86 points to 10695.26, its highest level since May 30. Leading the gains were the stocks of Infosys, Reliance, Hindustan Lever and TCS. In contrast to the jubilant mood that was witnessed on Friday, the markets were relatively sedate on Monday, remaining range-bound for most of the trading session. Cautious optimism prevailed in the latter half of the session, lifting the index to its closing level.

According to provisional estimates, FIIs made net purchases of about Rs 260 crore on Monday. The overall market sentiment, however, was divided, with a little less than 50 per cent of the stocks traded on the BSE ending in the positive territory. Large-caps remain at the forefront, as investors flock to frontline companies.

Buzzing stocks

Several recently listed stocks, such as Prime Focus, Plethico Pharma, Royal Orchid and Nectar Lifesciences, were prominent gainers. The stock of Prime Focus, the post-production company that listed about two weeks ago, surged 11 per cent. Last Friday, the company announced its acquisition of UK-based, visual effects firm, Clear Ltd.

Other notable gainers include Thermax, Engineers India, Container Corporation, Mangalam Cement, Orchid Chemicals, Ansal Properties and Punj Lloyd.

Sector themes

Frontline IT stocks were in the limelight, with TCS recording strong gains of close to 4 per cent. Satyam and HCL Technologies were prominent gainers, while the stock of Wipro lost favour.

FMCG stocks were also added to investors' shopping basket, with Colgate Palmolive and Proctor & Gamble making a rare appearance in the gainer's list. HLL rose 3.4 per cent following a round of price hikes in some of its products. Nestle and Marico also gained.

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A few media companies also put on a fine show. The stock of Deccan Chronicle was up a whopping 15 per cent. Sun TV, HT Media and TV 18 were also strong gainers.

Auto companies M&M, Hero Honda, Maruti and Tata Motors reported strong double-digit sales growth in June on Monday. But the numbers were no surprise to the markets, with all four stocks ending in the red. On the other hand, Tata Steel rose after it announced a 28 per cent increase in alloy sales on the back of rising demand from automobile manufacturers.

Stock-specific action

India's largest terry towel exporter, Welspun India acquired UK's Christy brand of towels, for £15.6 million . This will provide it access to the European and U.S markets. The stock surged 12.5 per cent to close at Rs 87.70.

The stock of Swaraj Mazda rose by its daily limit of 5 per cent to close at Rs 236.70. Japan's Isuzu Motors has entered into a technical assistance agreement with the company for the manufacture of Isuzu commercial vehicles in India.

Aluminium makers, National Aluminium and Hindalco raised prices by Rs 2,000 per tonne. The stock of National Aluminium rose about 1 per cent, while Hindalco ended the day relatively flat.

Prominent losers on Monday include Greaves Cotton, Oriental Hotels, Sun Pharma, Gokaldas Exports, Dredging Corporation and Asian Paints.