The Hindu Business Line : Select FMCG, steel stocks close on firm note

Trading highlights
Concerns over slow-down in profits in the US pull down domestic sentiment Select IT stocks such as Polaris Software, D-Link India witnessed strong buying Cement stocks moved up on the expectation of good financial performance

The bears brushed aside the weak attempts made by the bulls to get back to positive grounds on Thursday. Markets resorted to profit taking after the gains made on Wednesday, on the back of impressive Q1 results by Infosys.

Concerns over slow-down in profits in the US appeared to pull down domestic sentiments as well. Asian markets also took the cue and closed in the red.

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Stocks from the engineering and software spaces that went on an uptrend on Wednesday again went out of favour. Select cement, FMCG and steel stocks, however, managed to buck the trend and closed higher.

Buzzing stocks

While frontline IT players such as Infosys and Tata Consultancy Services witnessed selling pressure, select secondary stocks in the segment saw some action.

With a near 20 per cent surge to Rs 83.2, hardware IT player D-Link India hogged the limelight for most part of the day.

Polaris Software was another IT stock to add gains of over 10 per cent.

Tata Coffee zoomed 8.3 per cent to Rs 389.5. The company's board approved a revised rights offer to sell one partially convertible bond for every two shares held by shareholders.

Reliance Industries, Tata Steel. India Cements and Satyam Computer Services were notable stocks that were actively traded.

Sector focus

FMCG stocks got a boost from the monsoons. Hindustan Lever, Dabur, Britannia, Colgate Palmolive and Marico moved northward. McDowell hit the 5 per cent upper circuit to Rs 497 after the company announced the acquisition of a French wine company for 14.75 million (about Rs 87 crore).

Expectation of good results in cement stocks, on the back of firm prices of cement led to select stocks in the space closing in the green. Grasim Industries, Prism Cements, Associated Cement and India Cements were aided by the bulls.

Capital goods, which made a brief come back during Wednesday's rally were pulled back to negative grounds. Suzlon Energy, Voltas, Crompton Greaves, Siemens and BHEL succumbed to the bear's attack and lost in the range of 1-2 per cent.

Fresh buying interest seemed to have gripped textile stocks. S. Kumar added 7.5 per cent, while Zodiac Clothing, Garden Silk and Raymond also recorded smart gains.

Stock-specific action

Hindustan Zinc added Rs 5.3 to Rs 614.2. The zinc producer hiked the metal price by Rs 8,800 or 4.9 per cent. This is the company's third price rise for the month.

HCL Technologies lost 2.6 per cent to Rs 542.9. The software developer won a five-year order from Boston-based Teradyne for not less than $70 million (Rs 320 crore). HCL expects to generate further revenue over the contract period if additional services were provided.

UTI Bank ended lower by 1.1 per cent to Rs 273.1 despite a 30 per cent increase in first quarter profits.

KEI Industries, Punj Lloyd, Lupin, Prime Focus and Aegis Logistics were significant gainers at the NSE. Unitech, Finolex Industries, Jaiprakash Associates, Kochi Refineries and Bank of India were conspicuous losers.