Business Daily from THE HINDU group of publications
Tuesday, Mar 20, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Mar 20, 2007 ePaper |
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Markets
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Commentary Columns Vidya Bala
Pointers Less volatile session PSU stocks shine IPOs fail to impress on listing
The markets reflected optimism on Monday with steady buying interest from the beginning of the day's trading session. With positive cues from Asian markets, the Sensex rose steadily and also saw lesser volatility when compared to the last few trading sessions. While stocks in sectors such as capital goods, IT and banks rallied smartly, consumer goods and metals remained subdued. The day's rally was reflected in the advancing stocks outnumbering the declines by a ratio of 1.4:1.
Buzzing stocks
While the bellwether index gained over 1.5 per cent, the BSE Midcap and Smallcap indices settled for a gain of less than 1 per cent. Select mid-cap stocks, however, managed to hit their upper circuit filter and settle at that level. GMR Industries, Max India, Nissan Copper and IID Forgings closed at their respective upper band limit. At the NSE, stocks such as IFCI, Idea Cellular and Reliance Communications rose on the back of high volumes.
Sector focus
The BSE PSU index led the list of gainers among the BSE indices. The index gained 2.6 per cent with stocks such as Bharat Heavy Electricals, Bank of India, MTNL and Bharat Electronics surging ahead. Some FMCG stocks witnessed selling pressure. ITC declined by 2.1 per cent to Rs 142. The cigarette maker fell after the Government of West Bengal announced plans to levy a 12.5-per cent value added tax on tobacco products. The shares fell on concerns of a higher rate of tax eroding earnings. Marico, Godrej Consumer and McDowell were other shares in the space that moved southwards. Stocks in the oil and gas sector witnessed some momentum. While ONGC led the pack with a again of 4 per cent, refinery stocks Hindustan Petroleum, Bharat Petroleum and Indian Oil Corporation also joined the rally.
Stock-specific action
Shoppers Stop added 1 per cent to Rs 599.8. The company decided to exercise the option of acquiring a 19-per cent shareholding in HyperCity Retail out of the total of 51 per cent option available to it. HyperCity, a part of the K. Rajeja Corporation, is a hypermarket that sells groceries, fresh foods and home needs among other things. Canara Bank settled 0.5 per cent lower after it decided to divest 49 per cent of its stake in its wholly owned subsidiary Canbank Investment Management Services, in favour of Robeco group of the Netherlands. Pfizer jumped Rs 36.3 to Rs 731.7 after the company sold its Chandigarh factory that had been closed since November 2003, for Rs 278 crore.
New issues listed
A number of initial public offers listed on the bourses on Monday. AMD Metplast closed with a gain of 4.4 per cent from its offer price of Rs 75. Textile yarn maker, Abhishek Mills fell 17 per cent on listing and later closed at Rs 91 - 8.9 per cent below its offer price Lawreshwar Polymers debuted 11 per cent above its offer price of Rs 16 but closed the day at Rs 14. Jagjanani Textiles pared its initial losses and closed at Rs 23.15. The closing price was at a discount of 7.4 per cent to its offer price of Rs 25.
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