The Hindu Business Line : Markets begin the week on a negative note

The markets have begun the week on a negative note, although most Asian markets also traded weak on Monday. The Sensex declined by more than 200 points on the back of declines in stocks such as Infosys, Bharti and Satyam. Only three stocks in the Sensex basket — ONGC, Ranbaxy and Dr Reddy's Laboratories — ended the day in the positive territory. The NSE Nifty also declined by 50 points. Foreign investors sold Rs 787 crore worth of shares on Monday according to provisional figures of NSE.

While large-cap stocks bore the brunt of the selling pressure mid-cap and small-cap stocks evinced active interest. Such was the activity in small-cap stocks that the breadth of the market was positive, with 63 per cent of the stocks traded on the BSE advancing, even though the benchmark indices closed the day lower.

Buzzing stocks

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Small-cap and mid-cap stocks were in the limelight. Prominent mid-cap stocks that gained include Gitanjali Gems, Everest Kanto, NDTV, Praj Industries, Jaiprakash Hydropower and Syngenta. Among small-cap stocks, Vishal Exports, JCT, Godawari Power, Uttam Galva Steel and Shanthi Gears were prominent gainers. Jai Corp, Rajesh Exports, Heritage Foods and Flex Industries were some of the stocks that hit the upper circuit filter.

Sector themes

Technology stocks took a beating on Monday. The stock of industry leader Infosys, whose results are expected next week, declined 3 per cent. MphasiS was another prominent stock in the loser list, declining by about close to 4 per cent. The weakness could be attributable to concerns on the impact of rupee appreciation on performance. Tech Mahindra, however, continues to find favour with investors. The stock recorded a gain of 2.3 per cent on reports of it bagging a $400 million order from AT&T.

Metals stocks also felt the heat, especially those in the non-ferrous space with the likes of Hindustan Zinc and Hindalco losing 1.8 per cent and 2.4 per cent respectively. The stock of iron-ore major Sesa Goa slumped 4.5 per cent, even as reports about the takeover of controlling shareholder Mitsui's stake by global majors continues to persist.

Media stocks were abuzz with activity. The stock of TV Today shot up 10.6 per cent after 1,3 per cent of its share capital changed hands on a block deal. The stock of NDTV continues to make smart gains, logging an 8 per cent gain on Monday as well. Several lower-rung stocks such as Cinevistaas, Mukta Arts, BAG Films, Sri Adhikari Bros, Sahara One and GV Films enjoyed the limelight.

Stocks under pressure

Indiabulls Financial was a prominent loser ending the day lower by about 8 per cent. The company demerged its real estate venture recently. Other stocks that slid include Shree Renuka Sugars, Unitech, Mercator Lines, Great Offshore and Pantaloon Retail.

Prominent capital goods and infrastructure favourites such as ABB, Siemens, Punj Lloyd, Crompton Greaves, Bharat Electronics, BHEL and Areva also came under selling pressure.

Stock specific action

The stock of Himatsingka Seide rose 4 per cent on reports that it is set to takeover an Italian home-furnishing outfit for Rs 300 crore.

The stock of Pratibha Industries jumped 5 per cent on news that it has bagged a Rs

332-crore project from the Government of Rajasthan.

The stock of Gitanjali Gems gained 10 per cent on the back of its plans to make a preferential issue.