The Hindu Business Line : Banking, tech stocks lead the gainers

Recent developments such as the Tata-Corus deal, the policy review by the RBI and the US Fed meeting contributed to an event-packed day at the bourses on Thursday.

Positive cues from overseas (with the US Fed deciding to hold rates) and upward revisions in India's growth estimates by the RBI helped stock markets register strong gains on Thursday's trading. Optimism about the forthcoming Budget also aided sentiment. Frontline technology and banking stocks led the gainers list and contributed to a 176-point gain in the Sensex and a 54-point increase in the S&P CNX Nifty. Within the Sensex basket, advancing stocks outnumbered those that declined by a factor of 4. The rally however, saw limited participation from the mid-cap and small-cap stocks, with these indices failing to keep pace with the bellwethers.

Index Movers

SBI was among the strongest gainers in the index basket, on expectations that the central bank's stake in the company would be transferred to the Government at a premium to the current market price. ICICI Bank and HDFC Bank also registered gains, despite the repo rate hike by the RBI at its quarterly policy review. Given signals from the central bank over the past few days, the event seemed to be factored into market expectations.

Frontline technology stocks such as Infosys and Wipro rose on expectations that outsourcing would gain ground, after wage costs in the US showed a rising trend.

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Among the losers, Tata Steel continued to shed value in the aftermath of the Corus deal, while BHEL and Hindustan Lever also lost ground.

Technology and banking were the key sector themes that were in favour, with the frontline stocks in each of these sectors attracting buying interest. In contrast, gains were muted in large-cap FMCG and pharma stocks, as concerns about rising interest rates weighed on sentiment towards some of the bigger companies in these sectors.

It was a buoyant day for telecom stocks, with Bharti Airtel as well as Reliance Communication putting on significant value. The latter benefited from a proposal to sell stake in the Flag Telecom venture in the overseas markets.

Mid-cap movers

Sugar stocks continued their recent slide, with stocks such as Shree Renuka Sugars and Bannari Amman Sugars losing ground. Mid-cap capital goods/power equipment makers Areva, Alstom Projects and IVRCL rose, while select pharma stocks - Divi's Labs, Dabur Pharma also registered gains. HMT, Navneet Publications and Hanung Toys were prominent on the gainers list while Sanghvi Movers, CMC and Pfizer were on losers' list.

Stock-specific action

Positive earnings announcements buoyed the stocks of ACC, Tata Tea and Thermax. A 30 per cent growth in January vehicle sales aided the Maruti Udyog stock.

The Tata Chemicals stock made marginal gains; the company announced a joint venture with Europe's Total Produce to set up a supply chain for fresh produce in India.