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Markets show trends of revival

Sowmya Krishnan

AFTER remaining in the negative territory for a long time the markets have started to revive in this week. Shares rose for the third straight day on Thursday as strong quarterly results from leading software companies and overnight firmness in the US mar kets sparked a buying frenzy in technology stocks. The mood was so euphoric that even dismal data on industrial production failed to deter buyers.

The benchmark Bombay Stock Exchange Sensitive Index (BSE Sensex) on Thursday appreciated by 2.27 per cent to end the day at 3452.75 points (3376.21 points). It has risen nearly five per cent in the past three days, although it remains down 13.14 per cent from the beginning of the year.

The advance to decline ratio that reflects the broad market trend was positive with 584 shares advancing and 476 shares declining. The advancing volumes were also higher at 5.08 crore as compared to the declining volume at Rs 47 lakh.

Out of 1,177 issues that were traded on the exchange, 15 stocks reached new highs whereas 63 stocks plunged to new lows. The volumes were the highest at Rs 5.86 crore since July 2, when new trading rules took effect.

The National Stock Exchange also moved up in line with the BSE. The broad based SNP CNX Nifty registered a 2.02 per cent gain and finally ended at 1105.50 points (1083.65 points) after reaching a high of 1109 points. The number of shares that gained stoo d at 391 and the number of shares that declined in value were 284. The advancing volumes were much higher at Rs 6.82 crore as against declining volumes of Rs 44 lakh contributing to the overall gain in the markets.

Tech shares stole the limelight on Thursday. Infosys Technologies rose 4.07 per cent, Wipro advanced 9.85 per cent and Satyam Computer jumped 10.23 per cent. Infosys' and Satyam's quarterly results, announced earlier this week, both surpassed analysts' expectations and could have led to a spurt in share prices. Overnight good news from Microsoftcould have also lead to the buoyancy in the stocks.

Not only the top rung stocks but also the second rung stocks such as Polaris Software, Global Tele, Silverline Technologies, Pentamedia Graphics and Mastek recorded gains.

Zee Telefilms , rose 11.35 per cent on news that the company's founders had sold five million shares for about Rs 60 crore to a US-based institutional investor. The founders sold their stake to partly repay the Rs 220 crore they owed Zee. The share close d at Rs 108.40 (Rs 97.35). Trading volumes surged in tandem with the prices from 13 lakh shares to 94 lakh shares the previous day.

Consumer goods giant, Hindustan Lever also rose 4.99 per cent to Rs 214.80 (Rs 214.80). Cadbury India was up marginally at Rs 412.85 (Rs 408.55). The company had reported a 9.9 per cent rise in its second quarter net profits at Rs 9.46 crore.

Cement shares rose on the back of improved quarterly results from Associated Cement Companies. ACC, which reported a profit of Rs 43.95 crore or Rs 2.58 a share in the April-June quarter against a loss of Rs 9.5 crore in the year-ago period, closed up 4 .89 per cent. ACC's earnings rode on higher product prices, even though net profit fell short of expectations due to a provision of Rs 27.7 crore for deferred tax. India's largest cement producer Larsen & Toubro rose 2.85 per cent while Grasim Industries , closed up 5.82 per cent.

Ranbaxy Laboratories declined marginally by 0.52 per cent on the news that Bayer AG is developing a competing drug. The company would gain $30 million in the form of royalties if it develops its version of the drug. Volumes also fell by half to thirty th ousand shares.

Among the other losers were companies such as Gemini Communications, Goodlac Nerolac,United Breweries, Zodiac Clothing, Padmalaya Tele and Novartis.