The Hindu Business Line : Profit-booking at higher levels checks bull run

Pointers
Declines outnumbered advances
Bank stocks down on Finance Ministry directive
Oil and gas and consumer durables among the worst affected

The markets opened strong on the final trading day of the week. It went on to touch the 11,000-mark once again before the bears pulled down the Sensex. The profit-booking at higher levels mid-session subdued the bulls that held sway for the last four trading sessions. Taking the positive cues from global markets, the domestic equity markets opened strong but ended the day in the negative zone. The rate hike by Bank of England and firming up of oil prices led the bears to pull down the market.

The market breadth favoured the losers. Declines outnumbered the advances by a ratio of 1.3:1 on the BSE.

Buzzing Stocks

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Reliance Energy, HDFC, Bajaj Auto, IPCL and Ranbaxy were some of the prominent gainers on the BSE. Emco was in the limelight with the stock surging by 2.1 per cent to close at Rs 519.70. The company announced that it bagged orders worth of Rs 107 crore from Maharashtra State Electricity for upgradation of its Thane distribution network.

Sector Focus

Bank stocks took a beating on information that the Finance Ministry has directed nationalised banks to convene a board meeting to take decision on any hike in their prime lending interest rate. The Punjab National Bank stock bore the burnt of selling. It shed Rs 16 to close the day at Rs 368.60. Other prominent losers were Allahabad Bank, Bank of India, Indian Overseas Bank and State Bank of India. On a day of complete rout in the banking sector, the ones that bucked the overall trend were Kotak Mahindra Bank and HDFC Bank.

The stocks from the oil and gas sector also ended in the red. Aban Loyd Chiles Offshore lost Rs 22 to end at Rs 986. HPCL, GAIL, Indian Oil Corporation, Petronet LNG and Essar Oil were the other prominent losers.

The FMCG stocks also ended on the losers' side for the second consecutive day. Procter & Gamble lost Rs 24 to end the day at Rs 850. Tata Tea, Godrej Consumer and Hindustan Lever closed weak. However, stocks such as McDowell and Dabur India went against the tide and closed higher.

The Consumer Durables index was also down on selling pressure. The Blue Star stock lost 3 per cent to close at Rs 602. Videocon Industries, Goldiam International and Titan Industries were among the losers. The stocks that bucked the trend were Lloyd Electric and Engineering and Gitanjali Gems.

Stock-Specific Action

The Reliance Industries stock lost Rs 21 to close at Rs 966.7. The downward pressure has to be seen in the light of the Oil Ministry's clarification that the losses incurred in selling fuels will not be compensated.

Century Plyboard India announced that a shareholders meeting would be convened on August 22 to consider the amalgamation with Shyam Century Ferrous. The stock gained Rs 7 to close the day at Rs 164.9.

Gainers and Losers

Suzlon Energy, ABB, Dr Reddy's Laboratories, BHEL, Apollo Tyres and GE Shipping were the significant gainers on NSE. The prominent losers were Oriental Bank, Cipla, ITC, ICICI Bank, Jaiprakash Associates and Raymond.