Business Daily from THE HINDU group of publications
Tuesday, Aug 22, 2006
Business Daily from THE HINDU group of publications Tuesday, Aug 22, 2006 |
|
|
|
|
|
|
|
|
Home Page
-
Stock Markets Markets - Commentary Columns - Sensor Sowmya Sundar
The markets closed on a positive note as mid- and small-cap stocks continued to gain for the third straight week. Sixty-six per cent of the stocks advanced in BSE-100 and BSE-200 indicating more action in small- and mid-cap stocks. Most of the action was influenced by corporate developments. Among sectors, bank, technology and auto stole the show. Sugar stocks too raced ahead on expectations that sugar companies may be able to fetch higher price for ethanol.
GMR's debut
GMR Industries made its debut on Monday. Unlike earlier high profile IPOs that opened with a bang, the stock received a more muted response. The stock opened at Rs 215 as against its IPO price of Rs 210. It was considered to be an overpriced IPO and the expectation of listing gains was low.
Sector specific action
Bank stocks continued to rock on consolidation hopes. The merger of Centurion Bank with Lord Krishna Bank has set the stage for consolidation and the industry expects more such deals in the future. Bank of India, Punjab National Bank, Union Bank, Oriental Bank and Vijaya Bank made maximum gains. Technology stocks too rallied ahead led by Infosys. Patni Computers was the top gainer in the IT mid cap space. The company was ranked highest among Indian Offshore Supply Chain Solution providers in customer satisfaction. Among auto stocks, Bajaj Auto and M&M inched up. M&M's plans to set up a tractor factory triggered interest in the stock.
Pepped by order flows
Patel Engineering and Punj Loyd gained after they secured large orders. Patel Engineering secured hydro projects worth Rs 318 crore and Punj Loyd received a Rs 1,340 crore order from a Libyan company to build pipelines.
Stock specific action
Astra Zeneca plans to issue free bonds to its shareholders. The stock hit the upper circuit filter of 10 per cent. Rana Sugars too hit the upper circuit filter after its distillery division got a quota to sell liquor from Punjab Excise Department. The company has also been given various exemptions and concessions. Manana Sugar was another sizzling sugar stock. Radico Kaithan will be forming a joint venture with Diageo, the company that owns brands such as Jhonny Walker and Smirnoff, to exploit the large and developing Indian Made Foreign Liquor segment. The stock was up 3 per cent. Andrew Yule was up 5 per cent after it announced that it would be completing the Tide Water sale evaluations by the month end.
Buzzing stocks
Shree Precoated, Pantaloon, Timex, Gujarat Alkali, Sterlite Optical, Kernex Microsystems, Balaji Amines, Flex Industries, State Trading Corporation and Zuari Industries were among other stocks that buzzed. Kernex was up 14 per cent. The stock has witnessed a free fall in the recent market crash and is still below its IPO price. Pantaloon has been on an upward journey for a while now. Among metal stocks, Hindustan Zinc was a prominent gainer. Spentex Industries witnessed huge volumes after the company announced that it has concluded the Uzbekistan deal and will emerge as the largest spinning company.
Prominent losers
Sulzer India, JM Financial, Bongaigoan Refinery, IndusInd Bank, Goodricke, Lok Housing, Bharat Gears, Titagarh Industries, Crest Animation, Greenply Industries, Bombay Rayon and Balaji Telefilms were some of the losers.
More Stories on : Stock Markets | Commentary | Sensor
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
