The Hindu Business Line : FMCG, consumer durable stocks lead recovery

Pointers
Markets rally on expectations of a robust quarter results
FMCG and select IT stocks chip in smart gains
Low crude price bodes well for Auto and Oil & Gas stocks

Snapping its losing streak, the Indian bourses registered gains on a day, which marked the beginning of the result season for India Inc. The bulls seemed to have regained their control of the market, with the Sensex gaining about 269 points during the day.

The day witnessed broad-based buying with all the BSE sectoral indices closing in green. The broader index, Nifty, followed suit and closed with a 2.39 per cent gain. The advance-decline ratio was skewed in the favour of the bulls, with about two stocks advancing for every declining one. Further, positive cues from world markets also supported the investors' bullish sentiment.

FMCG and consumer durable stocks caught the investors' fancy with the respective indices recording the highest gains. Select IT stocks also performed impressively during the day.

Buzzing stocks

Hindustan Lever appreciated 4.53 per cent as investors perceived the stock's 11 per cent drop over the past month overdone with respect to its earnings outlook. IFCI continued to gain after the company sold about 7 per cent stake for Rs 780 crore in the NSE to a group of investors led by the NYSE group. Following this, IDBI, which holds about 12 per cent stake in IFCI, also appreciated by 11.4 per cent. Film post-production firm Prime Focus advanced 13 per cent on news that it was in talks to buy Spirit DI, the post-production arm of Hyderabad-based Suresh Productions. The bulls, however, ignored Infosys Technologies, which announced its quarterly results during the day. The company registered a modest 5.8 per cent sequential growth in Q3. The stock, nevertheless, gained momentum towards the end on the back of fresh buying interest.

Click here for table

Nestle India, Deccan Chronicle, Tanla Solutions and Tech Mahindra were among the stocks that hit their all-time high during the trading session.

Sector focus

Technology stocks gained momentum ahead of their results. Among the index heavyweights, Wipro gained 5.2 per cent; TCS and Satyam Computer gained over 3.4 per cent each. Among the mid-cap IT stocks that registered gains were MphasiS BFL, Polaris and Moser Baer.

The BSE FMCG index clocked gains on the back of renewed buying in index pivotals — HLL and ITC. Other FMCG stocks that led the day's gain were Bata India, Proctor & Gamble, Marico and Dabur India. Nestle India extended gains for the second day in a row after the company proposed a board meeting to consider the return of surplus funds in its reserves and share premium account to shareholders.

Auto stocks attracted investors' attention as crude oil dropped to under $54 per barrel. Mahindra & Mahindra gained 4.4 per cent; Maruti gained 2.8 per cent; Bajaj Auto gained 2.1 per cent. The fall in crude price also bode well for the oil & gas stocks, which extended smart gains during the session. BPCL, IOCL and HPCL gained over 2.5 per cent. Reliance Industries chipped in gains of about 1.7 per cent. Goldman Sachs has recently upgraded the stock rating to a `buy' from `neutral'.

Metal scrips also rallied as metal prices firmed up on LME. National Aluminium and SAIL recorded a gain of about 4 per cent each. The other gainers in this space were Tata Steel, Hindalco, Hindustan Zinc and Sterlite Industries.