The Hindu Business Line : Bellwether stocks maintain momentum

THE bulls appeared to be on a rampage with the bellwether indices breaking their record for the second consecutive day. Most indices recorded gains in excess of one per cent.

The scales were tilted in favour of the gainers with the advances-declines ratio at 7:3. The software majors also turned bullish, with the IT index recording sharp gains.

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The BSE Sensex, which opened on a strong note above 8,700 , posted high gains in the initial moments of trading. Maintaining the momentum, the index in the last few minutes of trading breached yet another barrier, reaching a high of 8808.8. The index closed with a gain of 102.3 points at 8799.96 points.

The S&P CNX Nifty moved on similar lines. The index opened on a strong note and closed with a gain of 1.3 per cent at 2663.4 points.

IT and technology stocks were in the limelight with both the sector-oriented indices on the BSE registering sharp gains, while most of the other sector-oriented indices closed with modest gains. The FMCG index on the BSE bucked the bullish market trend. It declined marginally by less than a point and ended the session at 1,556 points.

Frontline stocks Infosys, Wipro and Satyam helped the BSE IT index register a gain of 2.5 per cent. A higher than expected revenue growth for the sector helped the frontline stocks close with gains.The positive sentiment has spread to the lower rung IT stocks, with many of them recording gains in excess of 5 per cent. Major gainers were Hinduja TMT, Aftek Infosys, iGate Global, Zensar Technologies, GTL and PCS Technology, with each gaining more than 6 per cent. TCS bucked the trend closing lower by 0.5 per cent at Rs 1489.2.

The BSE TECk Index also followed a similar trend. Media stocks Balaji Telefilms, Crest Animation and TV Today, which recorded modest gains, partially contributed to the index gains.

Stock specific action

Geometric Software, dropped by 8 per cent following the announcement that the company is likely to report a less than expected revenue growth for the second quarter.

Heightened activity took place on GHCL's counter after the company announced that it has raised prices for soda ash by 4.3 per cent. Accompanied by a more than a two-fold jump in volumes, it closed with a 2.4 per cent gain.

A substantial jump in volumes was recorded on Patel Engineering's counter. About 5 lakh shares changed hands, with the company having bagged orders worth Rs 374 crore for an irrigation project and a rail tunnel project. It ended the session at Rs 239.9, posting a gain of 3.9 per cent.

Zee Telefilms, which plans to restructure its operations by carving a new entity for its cable television business, closed with a gain of about 2 per cent.

Gujarat Ambuja closed lower by 3 per cent after the company announced that its offtake for September fell 8 per cent. Heightened activity took place on Havells' counter. The stock gained 2.5 per cent after its board approved the acquisition of an electrical company in Greece to expand its overseas operations.

Jet Airways gained 3 per cent after it announced plans of raising funds overseas by selling shares and through FCCBs to fund its aircraft orders.

Essel Propack gained 3.7 per cent after it announced that its board would meet next week to consider a buy back proposal.

Dolphin Offshore gained 4.3 per cent, as it bagged orders worth Rs 7 crore. Volumes, however, were subdued on its counter.

Prominent gainers among the Nifty constituents were Shipping Corporation, HDFC Bank, MTNL, HCL Technologies and Tata Motors.

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