Business Daily from THE HINDU group of publications
Thursday, Aug 31, 2006
Business Daily from THE HINDU group of publications Thursday, Aug 31, 2006 |
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Markets - Commentary Columns - Sensor Shanthi Venkataraman
It was an uneventful day at the markets on Wednesday. The Sensex, now at a three-month high, ended in the positive territory for the fifth straight trading session. However, the gains were only marginal, with the index remaining range-bound throughout the day. Weakness in the stocks of Tata Steel, Reliance Communications, Infosys and Bajaj Auto contained gains. Mid-cap and small-cap stocks too, were largely out of action. The breadth of the market was weak; only 40 per cent of the stocks traded on the BSE notched gains. Foreign investors, were, however net buyers to the effect of Rs 287 crore, according to provisional estimates of the BSE.
Buzzing stocks
Mirc Electronics, Nitin Spinners, Pearl Global, Lokesh Machines and Nitco Tiles were some of the stocks that were abuzz in the markets on Wednesday. There was a sharp jump in volumes in the stocks of Gammon India, Heritage Foods, Exide Industries, Srei Infrastructure, Jay Bharat Maruti and Godawari Power.
Sector themes
Steel stocks slumped on news of a possible cut in prices across grades by anywhere between Rs 750 and Rs 2,000. The stock of Steel Authority of India, which is expected to meet shortly to review its pricing, declined by close to 3 per cent. JSW Steel and Jindal Stainless witnessed a sharp drop of 4-5 per cent each. Non-ferrous metal stocks also took a knock, with the likes of Hindustan Zinc and Sterlite ending deep in the red. Oil stocks continue to perform well. The BSE Oil and Gas Index has been one of the top performers over the past month, having gained about 13 per cent. Reports that the Government may allow State-run refiners to revise auto fuel prices once a quarter possibly triggered buying in the stocks of Indian Oil, HPCL and BPCL. The stock of BPCL was a star performer, gaining about 6 per cent. Select banking stocks attracted interest. Federal Bank was up nearly 8 per cent. The merger of Ganesh Bank with itself has been approved by the Supreme Court. Centurion Bank of Punjab was another notable gainer rising 6.5 per cent. Bank of Baroda, Bank of Maharashtra, Canara Bank, Union Bank and Vijaya Bank were other gainers. Pharmaceutical stocks traded weak. Aventis Pharma, Pfizer, Glenmark Pharma, Lupin, Marksans, Novartis and Orchid Chemicals were among the losers.
Stock-specific action
The stock of Ranbaxy rose 2.3 per cent to close at Rs 404.55. A court in Norway ruled in favour of the company in a patent suit. Pending regulatory approval, this will allow Ranbaxy to market a generic version of Pfizer's cholesterol-lowering drug, Lipitor, in Norway. Pfizer, however, plans to appeal the court's decision. The stock of Praj Industries gained 2.2 per cent to Rs 178.2, on the back of its plans to spend Rs 100 crore in expansion and acquisition of a company in the US. The stock of Reliance Communications lost 1.4 per cent. Negotiations between Flag Telecom and VSNL on access charges at the latter's landing station failed. The stock of Cadila Healthcare went ex-bonus on Wednesday. It closed the day at Rs 335.1, up Rs 6.15.
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