The Hindu Business Line : Sensex vaults, but mid, small-caps see muted gains

Pointers
*Stellar performance of Infosys props index
*FIIs net buyers for Rs 275 crore
*IT stocks steal the show
*Mid-cap cement stocks in the limelight

A stellar performance by tech heavyweight Infosys helped the Sensex end on a triumphant note on what promised to be a jittery day for the markets. The benchmark index opened weak in the morning after the serial bomb blasts rocked Mumbai, the financial capital. But the higher earnings guidance from Infosys saved the day. The stock gained a whopping 7.5 per cent, propping up the indices. It also won the confidence of foreign investors, who, according to provisional estimates, pumped in a net amount of Rs 275 crore.

Action, however, continues to be concentrated in the large-cap stocks. The BSE Midcap and BSE SMLCAP indices witnessed muted gains compared to the Sensex and BSE 200. Only about 50 per cent of the stocks traded on the BSE advanced, reflecting the divided market sentiment.

Buzzing stocks

While mid-caps were largely out of action, there were a few prominent gainers. Mid-cap cement stocks continue to be in the limelight, with the likes of Ambuja Cement Eastern, Birla Corporation, Dalmia Cement, Kesoram Industries, Madras Cement and Prism Cements notching up strong gains. IT and telecom stocks such as Hexaware, Polaris, NIIT, Avaya Global and Reliance Communication were also notable gainers.

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Other stocks that figured prominently in the gainers list include Deccan Chronicle, GHCL, Gujarat Fluorochemicals, Alok Industries, Oriental Hotels, Nilkamal Plastics and CESC.

Sector themes

Tech stocks were the obvious winners on Wednesday's market action, as strong earnings expectations, triggered by Infosys' higher forecasts, boosted buying in these stocks. The stock of TCS spurted seven per cent, while that of Wipro and Satyam gained about four per cent each. The stock of HCL Technologies was also a star performer, gaining 9.5 per cent.

Old economy stocks also received a warm reception. Non -ferrous metal stocks Hindalco and Sterlite were major gainers, as also Hindustan Zinc. Jindal Steel and Maharasthra Seamless also found favour.

Several engineering and infrastructure stocks also participated in the rally with the likes of Bharat Electronics, Bharat Bijlee, BHEL, Crompton Greaves, Kirloskar Brothers, Gammon India, L&T and Praj Industries recording gains of between two and four per cent.

Banking stocks, however, continued to be stingy on the return front. Allahabad Bank, Punjab National Bank and Oriental Bank of Commerce were notable losers. The stock of Federal Bank, however, bucked the trend, gaining 2.6 per cent.

Stock specific action

The stock of Maruti Udyog rose 3.26 per cent to Rs 813.40. Japan's Bellsonica Corporation is to set up a joint venture with the company in India for the manufacture of auto components.

The stock of Aurobindo Pharma rose Rs 12.6 to close at Rs 607.7. The company has received tentative approval from the US Food and Drug Administration, for Didanosine tablets, which help prevent the deadly AIDS virus from multiplying.

The stock of Orchid Chemicals rose Rs 2.5 to close at Rs 185.75. It, too, has received an approval from the USFDA for its ANDA of Cephalexin Oral suspension.

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