The Hindu Business Line : Sensex closes above 12k level

It was a jubilant day on Dalal Street as Sensex closed above the psychological-12k level. Though the Indian markets opened weak in sync with its global peers, buying in blue-chip counters helped the rally. Asian stocks fell after the prices of commodities including copper, gold and crude oil declined, while Dow was down on inflation worries.

Sensex remained choppy throughout the day and a bout of fresh buying which emerged later in the day, took the benchmark index above the 12k level. Capital goods and cements witnessed selective buying. Market breadth was weak. The advance/decline ratio was pegged at 1:1.3. However, foreign investors were net buyers to the tune of Rs 277.28 crore.

Buzzing Stocks

Larsen & Toubro surged almost 4 per cent on sustained buying ahead of the record date for the issue of bonus shares. It has been included in the derivative segment from September 15 with a lot size of 100 shares. Escorts zoomed 13 per cent amid strong volumes and market rumours regarding its improved financial performance in forthcoming quarters. Paramount Communications clocked an intra-day gain of 9.46 per cent. The counter witnessed bulk deals on Thursday on account of buying by a FII sub-account.

Click here for table

With effect from September 15, NSE has added L&T, Reliance Communications, SAIL and Zee Telefilms for trading in the derivative segment. The lot sizes have been fixed at 100, 700, 2700 and 700 shares respectively.

Sector focus

Cements continued to gain for the second consecutive day amid hopes of price rises from October. Grasim Industries posted a gain of 3.94 per cent; JK Cements gained 6.77 per cent; Shree Cements gained 5.87 per cent. The other stocks to gain were ACC, Dalmia Cements, Ultratech Cements and Mangalam Cements.

Metals had a lack lustre performance after metal prices closed weak in the LME on Thursday. Hindustan Zinc lost 2 per cent; SAIL lost 2.58 per cent; Sterlite Industries lost 2.07 per cent. Most of the other counters also closed in the red.

The airline stocks registered gains on falling crude oil prices. Jagson Airlines surged 9.50 per cent and Spice Jet gained 6.80 per cent. However, Jet Airways closed with a paltry loss of 0.74 per cent.

Stock-specific action

Satyam Computers rose 2.28 per cent. The company's promoters have announced corporatisation of their share holding i.e. an aggregate of 8.5 per cent of the total company shares will be transferred to a holding company controlled by them.

Everest Kanto Cylinder was up 8.32 per cent after the gas cylinder maker said its board would meet on September 21 to consider raising up to Rs 100 crore via a preferential share issue.

Tea planter McLeod Russell extended gains after a block deal for 2.7 million shares at Rs 123.50 was struck on the BSE. The shares, representing 2.7 per cent of the firm's share capital, were sold by the promoters to a foreign fund. The stock closed with a gain of 0.56 per cent.

Apollo Hospitals Enterprise saw action after it was announced that the health-care company had sold its stake in The Lanka Hospital (Sri Lanka) for Rs 146 crore. The stock was volatile throughout the day and closed with little gains.

Gainers and losers

JM Financial, KRBL, Uttam Galva, Satnam Overseas and Crew Bos were some stocks that registered gains. Exide Industries, India Infoline, Ruchi Soya, Financial Technologies and MTNL were some scrips that moved southwards.