The Hindu Business Line : Market breadth remains neutral, FIIs net buyers

In what appears to be a relentless rally, markets continued to march upwards and closed at a four-month high. Firm Asian markets and easing concerns over any further hike in the Federal Reserve rates kept the momentum on. However, the crucial US Fed meet, scheduled for Wednesday, would bring more clarity on market trend.

Though the BSE Sensex remained choppy throughout the day, buying was witnessed in select blue chips. Buying in pharma and FMCG helped sustain the market above the 12k level. Market breadth remained neutral; the advance-decline ratio was pegged at 1.05:1.

The FIIs were net buyers to the tune of Rs 373.88 crore, according to NSE provisional data.

Buzzing stocks

Finolex Industries surged eight per cent on high volumes, thus extending its recent surge. Larsen & Toubro continued to gain on account of the 1:1 bonus that has been announced; 28th September being the ex-day.

Click here for table

Among the other counters, Reliance Communications gained 2.88 per cent; Torrent Pharma gained 20 per cent; Rico Auto closed at a gain of 9.79 per cent.

Escorts surged 12.64 per cent for the day. Its volume was almost seven times its two-week average. Rain Commodities, Uniply Industries and Everest Kanto Cylinders were some stocks that touched their all-time highs on Monday.

Sector focus

FMCG led the gainers pack. Hindustan Lever was the top gainer in the space and recorded an intra-day gain of 2.87 per cent. ITC gained 2.6 per cent; Colgate-Palmolive 2.54 per cent; Britannia and Nestle gained 1.95 per cent and 2.75 per cent respectively.

The housing finance firms gained on expectations of a robust growth in the home loans segment.

GIC Housing Finance gained 9.86 per cent, HDFC gained 3.29 per cent and Dewan Housing surged 20 per cent. LIC Housing Finance closed with minimal gains.

Metals scrips slithered on expectations of price cuts, after metal prices declined in the LME.

Hindustan Zinc lost two per cent; Nalco lost 1.45 per cent; Sterlite Industries lost 1.18 per cent. Tata Steel, Sesa Goa and Ispat Industries were among the other losers.

Cements continued their winning streak. However, gains were dominant among the small caps and mid caps space.

Chettinad Cement gained 4.58 per cent and JK cements gained 1.41 per cent. The other counters to close with marginal gains were Birla Crop, ACC, Grasim, Gujarat Ambuja and India Cements. Expectations on a price hike have kept the sentiment buoyant in the sector.

Pharmaceuticals were a mixed bag. Biocon, Cipla, Dr Reddy's, Divis Lab and Dishman Pharma posted gains for the day. KDL Biotech and IPCA laboratory were among the losers.

The tyre scrips skidded. Apollo Tyres lost 3.45 per cent; Goodyear lost 2.74 per cent and Ceat shed 2.06 per cent.

MRF closed with a trivial loss of 0.17 per cent.

Stock-specific action

LG Balakrishnan spurted 5 per cent after the company announced its decision to offload its entire stake in LGB Textiles for Rs 19.45 crore.

Financial Technologies surged 4.62 per cent after Multi Commodity Exchange of India, its subsidiary signed a memorandum of understanding with Zhengzhou Commodity Exchange.

Shringar Cinemas Ltd jumped 3.45 per cent after it reported that the company would add seven to nine multiplexes each year, taking screens to 227 across 50 sites by March 2011.

Biocon gained 3.27 per cent on introducing an innovative anti-cancer drug. It has launched 'Biomab-Egfr', a therapeutic monoclonal antibody-based drug for treating solid tumours of epithelial origin, such as head and neck cancers.