The Hindu Business Line : Energy, consumer durables score gains

It was another day of volatility on Friday. Sensex closed above the 13,100-mark on a day, which saw the sensitive index swing close to 130 points between the high and the low. The Nifty was no different and after yo-yoing for most of the day, it managed to close above 3,800 points. Mixed trends from global peers failed to abstain the markets from gaining for the third consecutive session. However, the overall market sentiment was cautious, which reflected in the negative market breadth. The advance-decline ratio was pegged at 0.8:1. Energy and consumer durable stocks powered the day's rally. Selective buying in mid-cap also helped.

Buzzing Stocks

Reliance Energy and ONGC sizzled on the bourses with gains of about 7 per cent and 5 per cent respectively. Renewed buying interest was witnessed in these stocks. Expectations that ONGC stock price would be used as a benchmark for the pricing of Cairn's Indian share sale sparked this rally. Meanwhile, ONGC has regained its top market cap slot that it had lost to Reliance Industries last month.

Among the midcap stocks, Kalyani Steel led the gainers pack. The stock had appreciated 20 per cent on unconfirmed reports that the Kalyani group had formed a joint venture with defence equipment maker Singapore Technologies Kinetics to design, engineer and make systems for the Indian market. HEG was one more stock, which saw a lot of action during the day. The stock appreciated on market rumours that Lakshmi Mittal may buy a substantial stake in the company. The other stocks that posted gains were Blue Star, Balaji Telefilms, Phoenix Mills, RIIL and Voltas. Bayer Crop, Saregama, UTV Software, Man Industries and Sangam India were among the small caps that moved northwards. BHEL, Grasim, Anant Raj Industries and GMR Infrastructure were among the stocks that hit their all-time high.

Sector Focus

Cement stocks were back in action. Among the gainers were Gujarat Ambuja Cements, Ultratech Cemco, Dalmia Cements and Shree Cements. ACC gained about 2.5 per cent after it reported an increase of 11.41 per cent in cement production for October 2006 compared to the corresponding month last year.

Stocks in the consumer durable space continued their uptrend for the second day in a row. Mirc Electronic, Bajaj Electricals and Blue Star ended in the positive terrain Rajesh Exports surged 10 per cent on after it bagged an export order worth Rs 226 crore of gold jewellery from Radha Krishna Jewellers in Dubai.

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Select capital goods surged during the day. Thermax led the gainers pack. Among other stocks that gained were BEML, JMC Projects, Praj Industries and Gammon India.

However, banks remained weak. All but Centurion Bank of Punjab, Kotak Mahindra and SBI in the BSE Bankex closed in the red.

Stock-specific action

GE Shipping gained about 3.2 per cent ahead of the record date. The company has announced closure of its books between November 15 and 16 to ascertain the shareholders who will be eligible for the equity shares of Great Offshore (GOL), which will be formed by divesting its offshore services business.

NTPC powered ahead and gained about 1.7 per cent after the government gave it a waiver on Rs 1,000 crore-investment ceiling.