The Hindu Business Line : Bear onslaught takes market further southward

The markets opened weak on bear onslaught and went further southward as trading progressed. This was the third straight day of losses for the market. Cues include weakness across global markets on account of escalating prices of crude. The markets appeared to have overlooked healthy numbers reported by members of India Inc.

Stocks from oil and gas, metals, auto, FMCG bore the brunt of the market fall. All the sectoral indices were in the red. Indicative of the bearishness is advance/decline ratio that skewed in favour of declines, which outnumbered advances, by 2.5:1.

Buzzing Stocks

With the market engulfed in a sea of red, a few stocks did, however, manage to buck the trend and ended in the green. ICI India rose Rs 7 to close at Rs 301.9, after it announced that it would consider, at its board meeting, a buyback at a maximum price of Rs 350 a share.

The stock of Visaka Industries, which declared good results last week, was the other prominent gainer. The stock gained Rs 6 and closed at Rs 117.9.

Other prominent gainers on the BSE were Arvind Mills, Gujarat Mineral Development Corporation, Syndicate Bank, Ramco Industries and Deepak Fertilisers.

Sector focus

The stock of ONGC, which has a high weightage in the BSE Sensex, led the downward spiral. It shed Rs 84.4 and closed at Rs 1,023. BPCL, Reliance Industries, Indian Oil Corporation, GAIL and Petronet LNG were all down by 3-4 per cent.

Metals sector

Gold and silver prices soared, while those of ferrous and non-ferrous metals went the other way. Sterlite Industries was hit badly, losing 5.5 per cent to close at Rs 403.5. Other stocks that were also not spared the hammering included Hindalco, Sesa Goa Tata Steel, JSW Steel and National Aluminium.

The street, it appears, was expecting better results from the frontline auto stock Bajaj Auto. In spite of posting earnings growth of close to 30 per cent, the stock lost Rs 123 to end the day at Rs 2,521. Mahindra & Mahindra was another stock to bear the burnt and it shed 7 per cent and to close at Rs 545.5. Other prominent losers were Maruti Udyog, Escorts and Ashok Leyland.

Click here for table

FMCG stocks, which were active last week, lost market fancy on Monday. The stock of Colgate Palmolive was hit badly. It shed Rs 24 to close the day at Rs 372.5. Hindustan Lever was another stock that buckled under profit booking. ITC, Marico and Tata Tea were all down in the range 3-4 per cent. The stocks that bucked the trend were Nestle and McDowell.

Stock-Specific Action

India Cements declared good results for the first quarter. Net profit zoomed to Rs 112.5 crore from Rs 5.2 crore in the corresponding period last year. In spite of such stellar numbers, the stock lost Rs 5 to end the day at Rs 180.

Gujarat Narmada Valley Fertilizers shed 5 per cent. The company's net profit was down by 23 per cent as compared to last year figure of Rs 61.3 crore.

Glenmark Pharmaceuticals announced that its subsidiary in the UK had entered into an agreement with the generic arm of the Germany-based Merck for eight dermatological products for the European market. The stock lost Rs 2 to close at Rs 313.9.