The Hindu Business Line : Markets end the week on a strong note

Amidst positive global cues and strong domestic buying support, markets continued their northward journey and ended the week on a strong note. While the benchmark Sensex added 127 points at its close on Friday, the broader Nifty was up by 46 points.

Extending the gains of Thursday, markets opened on a strong note. The market interest was fairly widespread as stocks across the sectors netted off handsome gains. Breadth of the market remained largely positive as advancing stocks outnumbered the declining ones by a factor of 1.5. Better than expected performance by US companies had a positive impact on stocks of domestic IT companies. Infosys, Satyam Computer, TCS and Patni Computers recorded smart gains.

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Among index heavyweights, Tata Steel led the pack with a gain of 5.4 per cent. Hindalco, Hero Honda and SBI also closed on a positive note.

A large number of stocks from mid-cap and small-cap space also flared up on the back of strong buying support. Jagran Prakashan was a notable gainer whose stock shot up 11.9 per cent. Educomp Solutions, Gitanjali Gems, Karnataka Bank and Gujarat Alkalies were among the other notable gainers from mid-cap space. Among small-cap stocks, Sonata Software, Geojit Financial Services, Prime Focus, Flex Industries and SSI recorded a sharp rise.

Buzzing sectors

Stocks from cement and banking sectors attracted widespread market interest. Stocks of Grasim, ACC, Gujarat Ambuja and Shree Cement appeared to be on a strong footing. Gujarat Ambuja advanced by 0.8 per cent to Rs139 after the company announced that it spent Rs1,500 crore to bolster cement capacity.

Banking stocks that bore the brunt of selling pressure following the CRR hike continued to show signs of strong recovery. Canara Bank, Bank of Baroda, Kotak Mahindra Bank, Vijaya Bank and Union Bank of India ended on a creditable note. Indian Overseas Bank and Centurion Bank of Punjab, however, failed to buck the trend.

Buzzing stocks

There was heightened buying interest across the counters of Flex Industries, BPL, DCM Shriram, SSI and PBA Infrastructure, which saw their stocks hit the upper circuit limits.

Stock-specific action

Aurobindo Pharma surged by about three per cent to Rs 695.5. Earlier, the drug maker's Board approved combining two of its fully owned units - APL Life Sciences Ltd and Senor Organics Pvt - with the parent.

Bajaj Hindusthan added 1.3 per cent, following company's announcement that it plans to double white sugar output and produce more ethanol to capture almost a fifth of the domestic market.

Ranbaxy Laboratories advanced by 1.2 per cent after the nation's biggest drug maker won final US regulatory approval to make and sell its version of Bristol-Myers Squibb's Cefzil.

Reliance Communications gained 4.3 per cent, to Rs 466.6, extending a two-day 11 per cent rally, on speculation that Reliance Communications, is in talks to buy the Indian unit of Hutchison Telecommunications International.

Tata Motors climbed by 0.5 per cent, following company's announcement that it has entered into a joint-venture with Fiat Auto of Italy to make cars and parts in India at an investment of $895 million.

Other prominent gainers on the NSE included the likes of IDFC, Lupin, SAIL, VSNL and IPCL. Those that constituted the losers' pack included the likes of Ashok Leyland, Raymond, Indian Hotels, Zee Telefilms and Suzlon Energy.