The Hindu Business Line : All major indices end in positive territory

The markets started the week on a jubilant note, gaining for the fifth straight trading session, its longest winning streak since the market peak. Crude prices have dropped to a two-week low on the back of a cease-fire in Lebanon. Oil stocks gained.

Buying in Reliance and Bajaj Auto helped the BSE Sensex rise 120 points on Monday; the bellwether index has gained 4.6 per cent over a week. Mid-cap and small-cap stocks, however, outpaced the gains in large-caps.

The rally was across-the-board, with all major indices, barring the BSE Bankex, ending in the positive territory. The undertone in the market was bullish, with seven stocks advancing for every ten traded on the BSE. Foreign institutional investors did not contribute to Monday's gains, however, and were net sellers.

Buzzing stocks

Mid-cap and small-cap stocks have dominated the party over the last couple of sessions. The BSE Midcap Index has gained 8 per cent over the past week. Stocks that created a buzz on Monday spanned across industries and include Bombay Dyeing, Hindustan Motors, Mercator Lines, Mahindra Gesco, Dabur Pharma, and Engineers India. Price action in these stocks was also accompanied by robust volumes. Media stocks that have been out of action for a while such as Inox Leisure, Cyber Media and Entertainment Networks were also added to the shopping list.

Sector themes

The much- battered oil and gas stocks are finally showing signs of life. The drop in crude prices and the prospect of a review in retail oil prices boosted the stocks of oil marketing companies HPCL and BPCL, which gained by 5.5 per cent and 7 per cent respectively. IOC and Reliance Natural Resources were other notable gainers.

FMCG stocks made a comeback after a period of lull. GlaxoSmithKline Consumer, Marico, Godrej Consumer and Nestle were major gainers. Heritage Foods was a rare gainer, adding 9 per cent to its previous close.

Sugar stocks took a pounding. Recent reports suggest that world sugar production may exceed demand for the first year in four. A host of sugar stocks ended in the red including Sakthi sugars, Rajshree Sugars, Oudh Sugar, Balrampur Chini, KCP Sugar, Uttam Sugar and Shree Renuka Sugars.

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Auto ancillary stocks also evinced interest. MRF, Asahi India, Balkrishna Industries, Asahi India and Tube Investments were prominent gainers.

Bank stocks remained out of favour. Kotak Bank, Karnataka Bank and Andhra Bank were among the select stocks that witnessed gains.

Stock-specific action

i-flex Solutions gained Rs 59 or 4.4 per cent after it announced a $120- million acquisition of a US- based software company, Mantas Inc. The company will be making a preferential issue to its parent Oracle, to help fund the acquisition.

Blue Dart Express soared 13 per cent to close at Rs 530.4. DHL intends to buy out the remaining stake in Blue Dart Express and de-list the company. The latter's board is to meet on August 17 to consider the proposal.

Strides Arcolab appreciated a smart 8.4 per cent to Rs 302.7 on the back of its receipt of a tentative approval from the US Food and Drug Administration to sell an AIDS drug.

Anuh Pharma gained close to 10 per cent after it announced a 1:1 bonus.