Business Daily from THE HINDU group of publications
Wednesday, Sep 13, 2006
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Business Daily from THE HINDU group of publications Wednesday, Sep 13, 2006 ePaper |
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Markets - Commentary Columns - Sensor Vidya Bala
Pointers Markets witness bouts of buying and selling Banking and IT stocks shine India's industrial production figures boost markets
The bulls stood their ground towards close of market on Tuesday after a session marked by volatility. Tech majors such as Infosys and Tata Consultancy Services propelled the Sensitive Index after the US Federal Reserve announced that the US economy remains robust. Indian IT giants derive a chunk of their revenue from the US. Banking and metal stocks also stole the limelight while capital goods sector remained weak. India's industrial production figures may also have boosted the local markets. Production at factories, utilities and mines rose 12.4 per cent in July 2006, compared to a year earlier, marking the fastest growth in a decade. Major Asian indices barring China and Hong Kong closed in the red. The volatility in the Indian markets was reflected in the advance decline ratio of 1:1.
Buzzing stocks
India Bulls Financial Services was the star for the day as it surged 20 per cent to hit the upper circuit at Rs 366, just short of its 52-week high. Merrill Lynch had, on Monday, purchased 14 lakh shares of the company at Rs 306. The stock also recorded volume of over 100 lakhs. Other stocks in the mid-cap space that hit the upper circuit include Shaw Wallace, Texmaco, Orient Paper & Industries, and Lloyd Electric & Engineering.
Sector focus
Banking stocks were back in action after remaining in the sideline for sometime. Bank of Baroda was the biggest gainer with a surge of 6.6 per cent. Union Bank of India, Karnataka Bank, Oriental Bank of Commerce and Punjab National Bank also made their northward journey with gains in the range of 4-6 per cent. Metal stocks appeared to have evinced buying interest at lower levels. The bears haunted the sector after decline in international base metal prices. The BSE Capital Goods Index remained weak and failed to mimic the other indices. ABB, BHEL and Gammon India and Larsen & Toubro closed in the red.
Stock-specific action
Construction and engineering company Punj Lloyd added Rs 40.5 or 5.4 per cent to Rs 791.3. The company has entered into a joint venture with Swissport International to develop projects for the aviation industry. Shriram Transport Finance added 1 per cent to Rs 114.4 after the Indian unit of Merrill Lynch offered to buy $200 million of truck loans from Shriram Transport. Yes Bank plans to raise $150 million to fund expansion. The money will be raised through sale of bonds and shares. The company's share rose 2.4 per cent to Rs 87.9.
Post-trading announcement
Patel Engineering has acquired a controlling stake in Michigan Engineers — a Mumbai-based urban infrastructure company. With this acquisition, the company seeks to provide end-to-end solutions in the sewerage rehabilitation and urban infrastructure space in metro and tier-II cities. Hotel Leelaventure, India Cements, Essar Oil, HMY and SAIL were stocks that witnessed huge volumes. Among the stocks traded at the NSE, Mangalam Drugs & Organics, NDTV, EIH and Zee Telefilms were significant gainers. Kernex Micro Systems, Hindustan Petroleum, Shreyas Shipping, Rei Agro and Vimta Labs were conspicuous losers.
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