The Hindu Business Line : Tech stocks hog limelight; FMCG stays subdued

The bulls once again found their ground as strong Asian markets and robust quarterly results from IT majors Satyam Computer Services and Wipro lifted the bellwether Sensitive Index.

Even as inflation figures accelerated and caused temporary pessimism, buying interest in the index heavy weights ensured that the markets remained firm. The wholesale price inflation for the week ended April 7 was 6.09 per cent against 5.74 per cent in the previous week.

Metal, oil and gas and technology sectors stole the limelight on Friday, while FMCG stocks remained subdued. The broad-based buying was reflected in the advancing stocks outnumbering the decline by a ratio of 1.5:1.

Buzzing stocks

Satyam Computer Services was the top gainer among the Sensex stocks, clocking gains of over 6 per cent. The other IT major Wipro, which also came up with its numbers today, however, received less applause and closed in the negative. The stock, however, hit an intra-day high of Rs 600 before closing at Rs 570.8.

The small and mid-cap stocks also evinced buying interest, with quite a few closing at their upper circuit price. India Infoline, Shree Precoated, Tanla Solutions and Numeric Power Systems closed at their upper price band. Telecom stocks saw fresh buying as Idea Cellular, Reliance Communications and Tata Tele Services Maharashtra clocked smart gains on the back of huge volumes.

Sector focus

Metal stocks witnessed active trading with the BSE Metal Index gaining over 3.5 per cent. Steel Authority of India, Tata Steel, National Aluminium Company and Jindal Steel were among the major gainers and moved northward adding 6-7 per cent over Thursday's close.

The Government's move to provide export incentives ranging from Rs 1,350 to Rs 1,450 per tonne did not enthuse the markets much, although they received lukewarm buying interest. Balrampur Chini Mills, Bajaj Hindusthan, KCP Sugar and Mawana Sugar closed in the green, while Rajshree Sugars and Chemicals and Dwarikesh Sugar declined.

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Capital goods stocks appeared to have caught the market fancy with a number of mid-cap stocks in the space closing with strong gains. Greaves Cotton, Bharat Bijlee, Praj Industries and Bharat Earth Movers were among the prominent gainers in this sector.

Banking stocks remained a mixed bag on the back of the Finance Minister's announcement asking banks to moderate the growth of credit. Andhra Bank, Bank of Baroda and Union Bank of India lost ground and closed in the red, while Indian Overseas Bank and Kotak Mahindra Bank moved upwards.

Stock-specific action

India Cements announced a five-fold increase in net profits for the quarter ended March 2007 on a year-on-year basis. The company has witnessed expansion in margins since its corporate debt restructuring in 2005. The stock, however, ended flat at Rs 170.5.

The board of Shoppers' Stop will meet on April 28 to consider a rights offer to its existing equity shareholders. The stock added Rs 26 to close at Rs 661.

Hindustan Oil Exploration, Kopran, Unitech and Hanung Toys and Textiles were among the significant gainers at the NSE. Uniply Industries, K Sera Sera Productions, Mid-day Multi Media and Madras Aluminium were conspicuous losers.