The Hindu Business Line : FMCG stocks extend gains, metals bounce back

BELLWETHER indices, Sensex and Nifty, ended the day on Wednesday barely unchanged but not before going through a roller coaster ride. Sensex shed about 150 points from the day's high reached in early trade only to recover strongly in the afternoon session. Stock prices turned weak again as trading meandered to a close.

Sensex ended the day with a gain of 0.26 per cent. Trading volumes stayed above Rs 4,000 crore for the second day in succession. At NSE, Nifty closed with an even lower gain of 0.15 per cent. Trading volumes were above Rs 8,000 crore for the second straight day at NSE too.

Large-cap stocks out performed mid-cap and small-cap stocks. Mid-cap indices ended the day with losses. In terms of sectors, fast moving consumer goods stocks turned in the fourth consecutive day of advances powered by the resurgent HLL. Metal stocks, which had been under selling pressure for the past four trading sessions, bounced back. Consumer durables, IT, oil & gas and banking sectors registered losses.

Large-cap stocks such as Hindustan Lever, Bajaj Auto, NTPC and ITC led the day's charge ending with gains of 4-5 per cent. HLL's improved financial performance improved sentiment for consumer goods stocks with Gillette, Godrej Consumer and Colgate also being bidded at higher prices.

In the metals space, non-ferrous metal stocks such as National Aluminium, Hindalco and Hindustan Zinc ruled firm. Gains in steel stocks such as Tata Steel and SAIL were much more muted.

Mid-cap stocks to surge ahead include Adlabs Films, 3M India and United Breweries. Adlabs Films gained 15 per cent on a day when Entertainment Network, the company that owns the Radio Mirchi brand, got listed with gains of 63 per cent on the issue price. Adlabs Films has firmed up plans to enter the FM radio segment aggressively. Small-cap stocks such as Jagatjit Industries and Heritage Foods logged gains of 20 per cent.

Public sector refinery stocks rose in value when price of most other oil & gas sector stocks dipped. MRPL, Indian Oil Corporation, BPCL, HPCL, Kochi Refineries and Chennai Petroleum traded higher by at least 1 per cent. MRPL gained the most ending the day with a gain of 3.5. MRPL announced capital expenditure plans for about Rs 12,800 crore.

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In shipping, South East Asia Marine spurted up by 20 per cent. This was despite non-declaration of dividend in the board meeting held on Tuesday. GE Shipping also ruled firm. GE Shipping has announced the acquisition of a tanker that will join its fleet in the fourth quarter.

A few capital goods majors also rose in value. Ingersoll Rand, Atlas Copco and Honeywell Auto gained five per cent or more. Majority of capital goods stocks, however, ended in the red. Stocks of bearings companies especially fared poorly. NRB Bearing, SKF India and Timken lost more than 3 per cent.

Large-cap majors that lost value included the stock of Mahindra & Mahindra, which has come out with plans to raise capital through the overseas markets route. The stock lost 2.7 per cent.

A number of banking and financial services stocks also lost value. These include HDFC, State Bank of India and Bank of India. Amongst banks, ICICI Bank and Karnataka Bank bucked the trend and closed with gains.

Indian Overseas Bank, which would be buying out other stakeholders in Bharat Overseas Bank, also shed value marginally.

Mid-cap and small-cap stocks to lose value include Aban Lloyd, Cholamandalam Finance, Marico Industries, Moschip Semiconductor, Aksh Optifibre and K Sera Sera.

K Sera Sera shed five per cent in the wake of the company fixing a price band of Rs 64-70 today compared to Tuesday's closing price of Rs 78.