The Hindu Business Line : Bears resurface to trim gains at close; auto stocks rev up

The final hour of trade on Thursday saw the bears resurfacing to grab almost all the gains made during the day. Profit- booking at higher levels subdued the bulls, which pushed the market over the 11,000-mark during early part of the trading session.

Domestic markets initially took positive cues from Asian markets, which ended higher. The investors' sentiment, however, took a negative turn on concerns over rising interest rate in the local and global scenario. Firming oil prices and geopolitical strains may have further dampened sentiments. Confidence of overseas investors also appeared to be dented as they were net buyers to the tune of only Rs 104 crore on Wednesday.

The market breadth, however, remained positive with the gainers outnumbering losers by a ratio of 1.7:1 in the BSE.

Buzzing stocks

MRF, Era Constructions, Aegis Logistics, United Breweries and Jyoti Structures were some of the stocks to hit the upper circuit filter for the day. Among the stocks from the Sensex basket, Ranbaxy was in the limelight with a 3.9 per cent surge to Rs 392. A US appeals court invalidated one of Pfizer's patents on Lipitor. This may allow Ranbaxy to sell the copy a year earlier than expected. Aftek Infosys and IVRCL Infrastructures were other stocks in the limelight.

Sector focus

Sugar stocks surged towards market close on the back of reports that the Government had lifted ban on sugar exports partially and that companies can get the approval from the Director General of Foreign Trade for the same. Renuka Sugar, Balrampur Chini Mills, Dhampur Sugar Mills, Triveni Engineering and Dwarikesh Sugar were some of the stocks that sharply moved upwards.

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Impressive monthly sales figures appeared to have accelerated auto stocks. Maruti Udyog, Bajaj Auto and Tata Motors were prominent gainers in the space.

FMCG stocks were slowed down due to selling pressure. Hindustan Lever, ITC, Colgate Palmolive and Dabur India ended in the red.

Stock-specific action

The share of Great Eastern Shipping declined 1.2 per cent to Rs 220.6. The company announced the scrapping of a plan to demerge its offshore services into a separate company.

EMCO added Rs 6 to Rs 509. The power equipment maker plans to consider selling new shares overseas and in the domestic market.

Glenmark Pharmaceuticals got approval from the Drug Controller General of India to start the second phase of clinical trials for a drug that was licensed from the US-based Napo Pharmaceuticals. The announcement came after Thursday's trading session.

Global cues

The European Central Bank (ECB) raised interest rates to 3 per cent. This hike is the fourth in the last eight months. Bank of England also pushed its interest rate to 4.75 per cent, a move that was considered unexpected. Mounting inflation risks and surging oil prices appeared to have prompted this move.

The hike comes after 15 central banks across the US, Europe and Asia raised interest rates in July.

Gainers, losers

Deccan Chronicle, Rain Calcining, Taj GVK Hotels, Vivimed Labs and Transport Corporation of India were significant gainers at the NSE. Inox Leisure, Jagran Prakashan, D.S. Kulkarni Developers, Celebrity Fashions and Bharat Electronics ended as conspicuous losers.