Krishnan Thiagarajan

Key drivers


Market breadth

on an even keel with 1321 stocks advancing against 1220 decliners

Supreme Court

judgment on NTC deal

Linde deal

continued to spark BOC

Havells India

jumps on export order

After touching record highs on Monday's trading, the indices drifted down during the day's trading.

Though the Sensex touched a lifetime intra-day high, the lack of direction was apparent right through the day's trading. Both the Sensex and Nifty closed in the negative territory at the end of the day.

The breadth of the market remained on an even keel, with the advancing stocks matching the declines at 1321 to 1220.

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The Supreme Court judgment upholding the validity of the sale of surplus lands of National Textile Mills at Mumbai proved to be the key catalyst for the day.

It also set aside the Bombay High Court judgment, which had stalled the sale and development of the surplus land.

Buzzing stocks

Following the Supreme Court judgment, key stocks involved in the earlier NTC deal or sitting on prime real estate were in demand.

The

Bombay Dyeing

stock hit the 20 per cent ceiling, closing higher by Rs 78.80 at Rs 472.90. The trading volumes also surged 23-fold during the day.

The other stocks that buzzed along with Bombay Dyeing were

Morarjee Realties, Godrej Industries, India Bulls, Ruby Mills

and

Ansal Housing

.

The

Godrej

stock was another significant gainer, with the stock appreciating by 15.3 per cent to close at Rs 511.45.

Apart from a price rise, in Indiabulls Financial Services, the trading volumes soared 17-fold to 47 lakh shares.

Sector focus

While the capital goods and engineering stocks continued to attract heightened market attention, the sector that was buzzing during the day was FMCG.

The key stocks leading the way were

McDowell, Hindustan Lever

and

Bata India

.

Among capital goods and power stocks,

Siemens

and

ABB

attracted market attention.

Sugar stocks such as

Bajaj Hindusthan

and

Balrampur Chini

also attracted activity.

Towards the last hour of trading,

ACC

sprung to life, with a significant gain and that kindled interest across the entire cement sector led by

Gujarat Ambuja, Ultratech Cemco,

among others.

The sectors that fell out of favour were IT, metals and healthcare. Prominent stocks such as Infosys and Satyam shed value.

Event specific action

Apart from price gains, the key volume buzzers during the day were

Reliance Natural Resources, Reliance Communication Ventures

(that was listed on Monday) and

Bata India

.

The

BOC India

stock continued to buzz, with a gain of 3 per cent and robust trading volumes. On Monday, the Linde group had agreed to buy the BOC Group of UK.

The

Havells India

stock moved up by 6.80 per cent to close at Rs 510.

The company had secured an export contract from Eaton Electrical Group for two years worth revenues of $10 million on Monday.

The

Sunil Hitech

stock ended in the negative territory, shedding 4.5 per cent.

This is despite the company notifying to the exchange that it has been awarded contracts by BHEL and MSPC worth Rs 16 crore late in the trading day.

(This article was published in the Business Line print edition dated March 8, 2006)
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