The Hindu Business Line : Cement, bank stocks turn Sensex negative

The markets appeared to have reacted rather excessively to the scrapping of customs duty on import of cement. ACC, Grasim Industries and Gujarat Ambuja Cement were among the stocks in the bellwether index that led Tuesday's decline. The move to slash duties is being perceived as a step towards checking the spiralling inflation, which reached a two-year high this month.

Mixed results by Indian corporates also seem to have sent negative cues to the market. The overall market breadth at the BSE was negative, with the declining stocks outnumbering the advances by a ratio of 2.3:1.

The market was in the firm clutches of the bear from the beginning of Tuesday's trade. Selling pressure continued unabated with all the indices at the BSE closing in the red. The BSE's banking index bore the brunt of the bear's attack with a decline of 2.2 per cent. The pessimism in this index came on the back disappointing results from banking major State Bank of India. The stock declined 4 per cent to close at Rs 1,174.

Buzzing stocks

The negative market sentiment did not prevent some stocks in the mid-and small-cap space from hitting their circuit filters. Crest Animation, Heritage Foods, Nandan Exim and Vertex Spinning were some of the stocks in this segment that closed in their upper end of the price band. Hindustan Dorr Oliver also closed at its upper end of the filter at Rs 96.9. On Monday, the company had announced the bagging of an order worth Rs 9.3 crore from Madras Aluminium Company for expansion of the latter's refinery. The company's quarterly result is expected on 29th of this month.

While Reliance Natural Resources and Nagarjuna Fertilisers gained on the back of huge volumes, recently listed Pyramid Saimira soared 20 per cent to Rs 252. The stock was offered at Rs 100 through an initial public offer.

Sector focus

Apart from weakness in large cement players, the mid-and small-cap stocks in the segment also closed deep in the red. Mangalam Cement, India Cements, JK Cements, Kakatiya Cements and Birla Corporation lost ground.

Sugar stocks continued to be treated harshly by the market players. Balrampur Chini Mills, Bannari Amman Sugars, Sakthi Sugars, Shree Renuka Sugars, Dhampur Sugar and Mawana Sugars succumbed to selling pressure.

Results

While a number of companies did come up with impressive results, their stocks failed to react and were bogged down by the overall market mood.

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Bharat Electronics recorded a 52 per cent increase in net profits in its third quarter. Defence orders, which normally convert to revenues in this period, contributed to the bulk of revenue. The stock, which went to an intra-day high of Rs 1,329, closed flat at Rs 1,303.

Murudeshwar Ceramics witnessed a 31 per cent rise in sales and 27 per cent increase in bottom line. The stock, however, declined over 2 per cent on the back of concern over decline in operating profit margins.

KPIT Cummins, Shree Ashtavinayak Cinevision, Everest Kanto Cylinders, Repro India and CRISIL were some of the significant gainers at the NSE. Voltas, Havells India, Canara Bank, Kesoram Industries and Emami were conspicuous losers.