Business Daily from THE HINDU group of publications
Wednesday, Sep 27, 2006
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Business Daily from THE HINDU group of publications Wednesday, Sep 27, 2006 ePaper |
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Markets - Commentary Columns - Sensor Shanthi Venkataraman
Pointers Sensex sizzled past the Rs 12,300-mark for the first time in four-and-a-half month time. ITC was the lone loser from the Sensex basket Less than fifty per cent of the stocks traded on the BSE advanced, pointing to weak investor sentiment and selective buying behaviour
The markets rallied on Tuesday led by banking, auto and software stocks. The Sensex rose 147 points to close above 12,300 for the first time in four-and-a-half months, led by index heavyweights ICICI Bank, Reliance, SBI and Hindustan Lever. ITC was the only constituent of the bellwether index that did not close on a positive note; the stock ended the day flat. The index, which remained range-bound during the early hours of the session, saw a burst of activity in the post noon session. Mid-cap and small-cap stocks that have gained momentum over the last couple of weeks maintained a low profile on Tuesday. Less than fifty per cent of the stocks traded on the BSE advanced, pointing to weak investor sentiment and selective buying behaviour.
Sector themes
Banking stocks evinced strong interest on the prospect that the Reserve Bank of India may extend the deadline for implementing the Basel II capital adequacy norms. ICICI Bank and SBI rose gained about 3 per cent each; the former touched its 52-week high. Canara Bank gained 3 per cent as it announced that it would raise $300 million debt overseas. ING Vysya Bank gained a smart 5 per cent on the back of high volumes. Other gainers include Union Bank, Syndicate Bank, Bank of India and Punjab National Bank. Auto stocks also raced ahead of other sectors on the expectations of strong numbers. Leading players such as Maruti, Hero Honda, M&M and Ashok Leyland edged upwards by 2 to 3 per cent each. Auto ancillary stocks also shared the limelight. Asahi India Glass jumped 7.5 per cent. Tube Investments and MICO also gained. Tech stocks also found favour with some of the second and third rung stocks also featuring prominently in the gainers list. Stocks such as Educomp Solutions, Sasken, Dynamatic Technologies and Tech Mahindra were notable.
Buzzing stocks
Action Construction Equipment made an impressive debut on the bourses on Tuesday. The stock ended the day at Rs 193.45, about 49 per cent higher than its offer price. Real estate stocks resurfaced with the likes of Mahindra GESCO, Ansal Properties and Peninsula Land among the prominent gainers. Rama Newsprint, Oswal Chemicals and Fertilisers, Rajesh Exports, Bharati Shipyard and Malu Paper and Morepen Labs were among the stocks that sizzled. Alstom Projects stole the show with a gain of 16 per cent on the back of strong volumes.
Stock specific action
Sterling Biotech surged 16 per cent to close at Rs 127.35. The company is set to make its first foreign acquisition with the purchase of China Gelatin. The purchase price was not disclosed. Radha Madhav Corporation gained Rs 1.8 to close at Rs 38.7. The company announced that it had bagged an order from Reliance Retail for the supply of environment-friendly packaging films for branded products. Alok Industries announced that it would acquire a Czech textile company, Mileta International, for 13.96 million Euros or $17.8 million. Alok will acquire all its brands and will also act as a sourcing base for the target company. The stock, however, ended on a flat note.
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