The Hindu Business Line : Benchmarks continue to touch new highs

It was a jubilant day on Dalal Street as markets continued to scale new highs. Sensex, after touching an all-time high of about 14,526 points, closed with a gain of 112 points. The broader index, Nifty, ended the day with a gain of 0.76 per cent.

Mixed cues from global markets failed to weaken investors' sentiments. The market breadth was tilted slightly in favour of the bulls, mirrored by the advance-decline ratio of 1.35:1. Rekindling of buying interest in telecom and auto stocks led to the day's rally. However, metals and IT staged a laggard performance.

Buzzing stocks

Punjab Tractors gained close to 12.5 per cent, to close at Rs 280 on the back of renewed buying interest and volumes as high as 16 times its two-week average. The company has recorded an increase of about 18 per cent in net profits for the quarter ended December 2006.

Balaji Telefilms appreciated by about 11 per cent amid reports that it might sign a joint-venture deal with NewsCorp's `Star' group to produce regional language content. HDFC, extending its Friday's surge, gained about 4 per cent on Monday.

Another stock that put up a stellar performance for the day was Blue Bird, which gained 20 per cent. Among stocks that gained were Lumax Auto, Escorts and IDBI.

Asian Hotels, CESC, Jain Irrigation, Areva, Electrotherm and Dhampur Sugar were among stocks that hit their all-time highs during the day's session.

Sector focus

Telecommunication stocks gained after the Telecom Regulatory Authority of India (TRAI) cut the fees that phone companies charge for connecting each other's users by as much as 29 per cent on February 2. However, the new charges would be applicable from April 1, 2007 only.

The major gainers in this space were Reliance Communications, Bharti Airtel, TTML and Himachal Futuristics. VSNL and MTNL, however, closed in the red.

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Auto stocks rose on renewed buying. Maruti Udyog recorded a rise of 2 per cent; M&M increased by about 2.5 per cent and Hero Honda gained 2 per cent during the day. Other stocks that notched up gains were Bharat Forge, Amtek Auto, MICO, Bajaj Auto and Cummins India.

Metals, however, declined after prices of copper and zinc tumbled on the London Metal Exchange. Hindustan Zinc declined by about 5.5 per cent after it reduced prices for the fifth straight time in two weeks to match declines in global rates; Hindalco lost 2.7 per cent, Sterlite Industries lost 6.3 per cent while SAIL shed close to 1.7 per cent. Tata Steel, however, gained about 1.5 per cent.

Stock-specific action

Shringar Cinemas gained 10 per cent after it received an exemption from paying entertainment tax for its FAME Multiplex at Aurangabad.

Rain Commodities gained 9.5 per cent after the firm said that its US-based subunit would buy the assets of Canada's Great Lakes Carbon Income Fund. This purchase will give it control over calcined petroleum coke maker GLC Carbon USA.

Indiabulls Financial Services gained about 7.3 per cent on announcement that it may transfer its broking business into a separate company and seek approval to list the shares of the new company.

Ansal Properties & Infrastructure appreciated by about 5 per cent on announcement that its Board will meet on February 12 to consider a plan to give free shares to stakeholders.