The Hindu Business Line : HDFC, tech stocks at the forefront

Following positive cues set by both the US and the Asian markets, the Sensex opened with a bullish undertone, up about 14 points from its previous close. The index swung about 115 points on Thursday, which also marked the expiry day for the current month derivative contracts, and closed with a gain of 79 points. Though the market had softened after touching its peak for the day, it regained strength in the fag hours as buying in F&O stocks resumed. However, the overall market sentiment remained neutral, with one stock advancing for every declining one.

New listing

Parsvnath Developers, pure-play realty major, made its debut on the bourses on Thursday. The stock listed at Rs 551 on the Bombay Stock Exchange as against the initial public offer price of Rs 300, attracting a premium of 80 per cent.

Index stocks

HDFC Bank was the top gainer in the Sensex. The stock clocked a gain of 2.87 per cent. IT majors Wipro, TCS and Satyam Computer also notched up decent gains, tracking overnight gains in their ADRs. TCS gained on signing a seven-year deal worth $65 million (Rs 290 crore) for reorganising Somerfield's IT services. Dr Reddy's and Cipla were among the other gainers during the day.

Tata Steel continued to witness selling pressure, as speculation regarding its Corus deal kept the buyers away. The stock lost close to 2 per cent. Among other losers were Ranbaxy, Gujarat Ambuja Cements and NTPC.

Reliance Capital, Mysore Cements, CCL Products and Everest Kanto Cylinders were some stocks that touched their all-time high during the day.

Sector trends

Oil marketing companies' stocks continued their downtrend after the government announced a cut in retail prices of diesel and petrol by Re 1 and Rs 2, respectively, on Wednesday. This reduction in prices will further affect the profitability of these companies. Indian Oil Corporation, HPCL and BPCL closed in the red.

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Select bank stocks appreciated, with the BSE Bankex gaining about 1.2 per cent. Karnataka Bank, ICICI Bank and SBI were among the gainers. Kotak Mahindra Bank gained by about 2 per cent after it announced its plans to expand its overseas operations, including centres in the West Asia, Far East and Japan.

Selective buying in capital goods space helped sustain the market. Lakshmi Machine Works gained 2.6 per cent after its board approved its stock-split.

Stock-specific events

Sujana Universal stock surged by 3.8 per cent after the company got an approval from the RBI to hike the FII investment limit.

Aztec Software rose sharply on the bourses on Thursday after the RBI has approved the company's plan to hike the FII investment limit. However, it closed with a gain of 2.4 per cent.

Raipur Alloys & Steel gained 20 per cent to close at Rs 122. The stock surged as Reliance Mutual Fund acquired 12.5 lakh shares, via bulk deals.

Other gainers and losers

Dena Bank, Gail India, Alok Industries, Aventis Pharma and Aurobindo Pharma were among the counters that clocked gains. Ramco System, Pidilite Industries and iGate Global were among the stocks that moved southwards.