The Hindu Business Line : Metal stocks hog limelight in a volatile market

Volatility marked the day's trading session as the Sensex yo-yoed between positive and negative grounds throughout the day before ending marginally lower.

The S&P CNX Nifty appeared relatively stable and closed higher. Banking, IT and cement sectors witnessed selling pressure, while metals and capital goods had a field day.

The Sensex showed weakness after a firm opening. Even as select buying interest during the day lifted the index, the bears once again made their appearance conspicuous during the final hour of trade to pull down the bellwether index. That the Sensex did not reflect the broad based rally was evident in the advance decline ratio favouring the rising stocks. Advancing stocks outnumbered the declining ones by a ratio of 1.5:1. This may have come about as a result of active buying interest in the mid- and small-cap segments, with the respective indices at the BSE gaining by about one per cent.

Buzzing stocks

The volatile market did not prevent some of the small- and mid-cap stocks from closing at their upper bands. Best & Crompton, Hindustan Dorr Oliver, Shree Precoated and Ador Welding hit their upper circuit filters and closed at that level. Steel Authority of India, India Bulls Real Estate and ITC gained on the back of surge in volumes.

Click here for table

Suzlon Energy made a smart comeback after the stock declined on Tuesday as markets perceived the revised bid for REPower to be expensive. The share surged 7.1 per cent to Rs 1,059 on Wednesday.

Sector focus

Metal stocks gained on the back of firm metal prices at the London Metal Exchange. The reduction in the steel export rebates by China may cause price hike of the metal in that country. Even as China's Baoshan Steel increased the price of its products by 6.5 per there was optimism in the local market that rising steel prices may result in increased pricing for Indian steel companies too. Hindalco was the biggest gainer in the Sensex adding over 4 per cent, while Tata Steel, Sterlite Industries, Maharashtra Seamless and National Aluminium Company also climbed northwards.

The BSE capital goods index was among the top gaining indices at the BSE, Bharat Heavy Electricals, Kalpataru Power Transmission, Thermax and Greaves Cotton were among the significant gainers.

Banking stocks fared poorly in the market on Wednesday. UTI Bank, Kotak Mahindra Bank, HDFC Bank and Bank of India declined while Andhra Bank and Indian Overseas Bank managed to crawl northward.

Stock-specific action

Deccan Chronicle Holdings hit it upper circuit to reach Rs 163.5. The media player has increased its advertising rates by 30 per cent with effect from May for all its editions.

Jet Airways declined by Rs 36 to Rs 609. The company's renewed deal for Air Sahara is likely to be disclosed on Thursday. The share, however, declined on concerns over the likely strain on its balance sheet as a result of the possible acquisition.

Geometric Software, Novapan, Astra Microwave, Noida Toll Bridge and Sanghvi Movers were among the gainers at the NSE. Mindtree Consulting, Nandan Exim, Amar Remedies and RPG Cables were significant losers.