The Hindu Business Line : Sustained buying in mid-caps, small-caps

The markets closed on a positive note following firm global cues from its Asian peers. Bank of Japan's decision to not raise the interest rates helped boost sentiments on the bourses. Sustained buying in mid-cap, small-cap and auto space supported this surge in the markets.

However, markets were overall range-bound, with the Sensex oscillating 115 points, between the day's high and low.

The advance/decline ratio was pegged at 1.60:1, with 1,563 shares advancing as against a decline of 980 shares; 73 shares remained unchanged in the BSE.

According to provisional data, FIIs remained net sellers to the tune of Rs 219.33 crore.

Buzzing stocks

Reliance Communications was the top gainer in the index. It posted a gain of 4.91 per cent on announcement of completion of its corporate reorganisation plan and a rise in the stake of ADAG in the company to 66.62 per cent. They had also applied to the Department of Telecommunication for GSM spectrum in 21 of the 23 telecom circles of the country, under the unified access service licence.

Among the index heavy weights, other counters that posted gains were Hero Honda, BHEL and Reliance Energy. In the midcap space, 3M India, Gillette India and Finolex Industries were some of the gainers. Rajesh Exports continued its gaining streak. It had recently bagged an order from Lazorde Jewellery in Kuwait.

Jet Airways witnessed volatile trade and closed at a loss of 5 per cent. The stock had posted a gain of over 12 per cent on Thursday, spurred by whispers of an out-of-court settlement with Air Sahara.

Sector focus

Auto and Auto ancillary witnessed yet another day of action. The BSE Auto index posted a gain of 1.2 per cent for the day. Gabriel, JK Industries and Jay Bharat Maruti posted a gain of over 8 per cent each.

Maruti Udyog rose 3 per cent on the news that the company planned fresh investments up to Rs 3,000 crore for the launch of a new-small car, for both domestic and foreign markets. Honda Siel and M&M have also announced their investment plans.

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The sugar stocks were a mixed pack. Bajaj Hindustan, Balrampur Chini and Mawana Sugars clocked gains. However, Sakthi Sugars and Shree Renuka Sugars posted loss for the day. Petroleum Minister had later in the day announced that the blending process in the ethanol-blended programme would commence from November 1. The process of buying sugarcane extract at a negotiated price has been scrapped and instead the public sector oil marketing companies have been asked to call for open tenders.

The tyre scrips gained as rubber prices slipped to 8-month low. Apollo Tyres gained 6 per cent; Ceat and Good Year gained 5 per cent; MRF gained 2.7 per cent.

Consumer Durables segment saw selective buying. Whirlpool India, Timex Watches and Mirc Electronics gained over 7 per cent each on renewed buying interest and high volumes.

Stock-specific action

PSL spurted 3.8 per cent after it bagged an order worth $17 million (approx Rs 80 crore) to meet the requirements of High Pressure Gas Pipeline project from UAE.

United Western Bank spurted 9.95 per cent for the second day on consistent buying interest. Indiabulls Financial Services has also submitted expression of interest, proposing merger of the bank with itself.