The Hindu Business Line : Firm Asian markets prop up sentiment

Sensex opened higher and remained in positive turf throughout the day. It ended with a gain of 70 points. Firm Asian markets helped buoy the sentiment, which remained bullish. The advance-decline ratio was pegged at about 1.2:1.

New listing

Lanco Infratech made a muted debut on the bourses, with a listing price of Rs 270 on the BSE as against the initial public offer price of Rs 240.

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Buzzing stocks

In an event that might change the face of the Indian retail industry, Bharti Enterprises signed a tie-up deal with US retailer Wal-Mart to open a chain of retail stores across the country. Following the report, Bharti Airtel notched up gains of 2.25 per cent.

NTPC was another counter that bagged a lot of attention during the day. The stock surged by 2.56 per cent and has dethroned Infosys as the third largest company in India in terms of market capitalisation. The buying interest in the stock can also be attributed to the supposed price discovery of all power stocks before much-awaited Cairn Energy IPO.

Gujarat Ambuja Cements was the top gainer in the large caps space. The stock gained close to 3.4 per cent for the day. Other counters that gained were ONGC, Wipro and State Bank of India. Hindustan Zinc clocked gains of about 5.9 per cent after it raised zinc prices by 3.5 per cent to Rs 2,28,800 per tonne.

Midcaps also put up a moderate performance. Buying across selective counters helped sustain the market. Pidilite Industries, ENT Network, Shree Ram, and Nagarjuna Constructions were among some of the scrips that appreciated.

Some of the small cap stocks also made smart moves during the day. Donear Industries, City Union Bank, Sangam India, Sadbhav Engineering and Atul were among the counters that moved northwards.

Strength was also visible in consumer durable counters with the respective BSE index gaining 2 per cent. Rajesh Exports gained 10 per cent; Gitanjali Gems gained 8 per cent; Su-Raj Diamonds gained 7.5 per cent.

Frontline bank stocks were in demand as the bond prices soared. Kotak Mahindra Bank, State Bank of India and ICICI Bank witnessed renewed buying interest. Cement stocks rose on firm cement prices. ACC, Grasim and Ultra Tech Cement staged decent gains.

Stock-specific action

Lok Housing & Constructions rose about 5 per cent after the company announced that it will raise up to Rs 893.39 crore through issue of foreign-currency denominated securities. Its board has approved the proposal to increase its authorised capital to Rs 60 crore from Rs 50 crore.

BASF gained about 4.8 per cent on news that it would discontinue its operations at the agrochemicals plant in Thane. The discontinuation is a part of the ongoing rationalisation measures undertaken by the company.

Sun TV rose 1.13 per cent after its board approved the merger of satellite television company, Gemini TV, with itself.

Other gainers, losers

Punj Lloyd, Crompton Greaves, Arvind Mills, Reliance Capital and Glenmark Pharma were among the counters that clocked gains. Dr. Reddy's, Hindustan Lever, Cipla, BhEL and IOC were among the scrips that closed in the red.