Business Daily from THE HINDU group of publications
Saturday, Mar 17, 2007
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Business Daily from THE HINDU group of publications Saturday, Mar 17, 2007 ePaper |
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Stock Markets Markets - Commentary Columns - Sensor Shanthi Venkataraman
The market weakness continued on Friday, with India's inflation numbers accelerating more than expected. The markets, which began on a mildly positive note, dropped after the first hour of trading. The Sensex declined 0.90 per cent to close at 12430.40 points, led by selling in Infosys, Larsen & Toubro and ICICI Bank. The benchmark indices have been on a losing streak for the fifth week running. Mid-caps and small-cap stocks also bore the brunt of selling pressure. The market breadth was weak with only 30 per cent of the stocks traded on the BSE ending in positive territory. Foreign institutional investors were net sellers on Friday as well; they have effectively pulled out Rs 2,500 crore from the markets in March alone. Banking and capital goods stocks were the worst hit.
Buzzing stocks
Select mid-cap and small-cap stocks did manage to attract investor attention. McLeod Russel was a prominent gainer, soaring by about 9 per cent. Textile stocks Shivalik Global, Alps Industries and Aarvee Denims were also notable gainers. Other stocks that made smart gains include Info Edge, United Spirits, Pritish Nandy Communications, B.A.G Films and LT Overseas. Stocks that shed value include Bajaj Hindusthan, Prajay Engineers, Wire and Wireless India and Hindustan Sanitaryware to name a prominent few.
New listings
Page Industries, the manufacturer of Jockey brand of innerwear, made its debut on the bourses. The stock listed at a discount and closed the day 25 per cent lower than the offer price. Raj TV was the other stock that listed on Friday. While the stock listed at a modest premium, it too, closed the day about 12 per cent lower than its offer price. Both debutants clocked huge volumes. Recently listed stocks continue to perform poorly in the markets. Evinix Accessories, Indus Fila and Mudra Lifestyle declined sharply on Friday. MindTree Consulting, about the only recent listing to have listed at a significant premium to its offer price, cooled off on Friday's trading.
Sector themes
Banking stocks were under pressure. The shares of UTI Bank, Centurion BOP, Andhra Bank, Oriental Bank and Punjab National Bank declined. Capital Goods and infrastructure stocks also took a beating. Kirloskar Brothers, Bharat Bijlee, Areva, AIA Engineering and L&T shed between 3-5 per cent. Alstom Projects, Bharat Electronics, BHEL, Jyoti Structures and Siemens were other prominent losers.
Stock-specific action
Ranbaxy has received tentative approval from the USFDA to market the generic version of Sanofi-Aventis SA's Ambien pills, which treats insomnia, in the US. The stock gained Rs 5 to close at Rs 316.05. Suzlon Energy tumbled 5 per cent to close at Rs 964.35 on concerns that the bidding war between the company and Areva SA for German wind-turbine builder Repower Systems might force it to borrow beyond its means. Pritish Nandy Communications rose 4.49 per cent to close at Rs 50.05. The company has allotted 40 lakh shares to qualified institutional buyers at Rs 70 a share. The stock of Syngenta India dropped by Rs 22.5 to close at Rs 447.8. The stock is to be de-listed from the Bombay Stock Exchange.
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