The Hindu Business Line : New Year lifts spirits of bulls as Nifty moves past 4K

Pointers
Sentiment rally marks the first trading session of the year
Small caps witness action
Auto stocks sizzle as December sales figures are announced

The Indian stock markets, in its own style welcomed the New Year with a bull gap. Markets, which opened on a firm note, closed in green on the first trading session of the year. The New Year seems to have lifted the spirits of the bulls, who dominated the day's session.

Buying was conspicuous across board, with about three stocks advancing for every decline. Nifty, which settled above the physiological 4000-mark gained about one per cent. Sensex, on the other hand, closed 60 points short of the 14k-mark. Investors' sentiments, nevertheless, remained positive with all the BSE sectoral indices closing in green.

Buzzing stocks

Allcargo Logistics was the stock in demand during the day. It surged 10 per cent on news that it was buying Thomas Cook India's Hindustan Cargo subsidiary for Rs 8.91 crore. Aban Offshore was another stock that enticed the investors on announcement that the group will bid 135 Norwegian crowns a share for Sinvest, valuing its Norwegian peer at $1.3 billion. The stock appreciated by about 18 per cent. The newly listed stock, Nissan Copper, which touched the day's high of Rs 154 on the back of a block deal, however, closed with a loss of about 10 per cent.

Among stocks that hit new highs during the day were Jain Irrigation, Titan Industries, Jai Corporation, IOL Broadband, Educomp Solutions and Texmaco.

Sector focus

The BSE-30 stocks staged a decent performance with all but six stocks closing in the positive turf. Ranbaxy, Grasim, Hindalco and Gujarat Ambuja were some of the stocks that notched up smart gains. However, Tata Steel, Dr Reddy's Lab and HDFC proved to be laggards and closed in the red. Large cap IT stocks were in demand. Satyam Computer gained by about five per cent, TCS 2.5 per cent, while Infosys gained 1.4 per cent.

The announcement of December sales numbers caught the investors' attention. While M&M, Bajaj Auto and Maruti marched upwards on healthy growth in the sales figures, TVS Motor lost 2.5 per cent on disappointing numbers. The other auto stocks that chipped in gains were Tata Motors, Hindustan Motors and Ashok Leyland.

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The search for value-buying avenues amid investors' seems to have led to the small cap rally, with the respective BSE index clocking gains of about 1.6 per cent. Among small caps that surged were IFCI, Carol Info, KRBL Orient Paper and Heritage Foods.

Stock-specific action

Praj Industries gained 10 per cent on announcement that the company continues to record significant order intake from the US. It has bagged three orders valued at Rs 170 crore from companies in the US.

McNally Bharat chipped in gains of five per cent on receiving an order worth Rs 92 crore from Utkal Alumina International for its alumina refinery project.

Nagarjuna Constructions appreciated by about 2.3 per cent on winning new orders worth Rs 255 crore.

Hindustan Zinc gained one per cent after it lowered the price of the metal by Rs 3,200 or 1.4 per cent. .

Other gainers and losers

3i Infotech, Grindwel Norton, NDTV and BEML were among the stocks that moved northwards. Among scrips that closed in the negative territory were Greaves Cotton, Swan Mills, Hexaware, Mascon Global and Sanghvi Movers.