With the >RBI monetary policy on expected lines, the metal stocks turned hot with four stocks in the CNX metal index hitting fresh 52-week highs today.
However, some of the FMCG, banking, IT and pharma stocks remained subdued.
The metal stock counters were the biggest gainers as a bloc but this appeared to be more due to reports from China, which showed that manufacturing registered its fastest growth last month with its PMI of manufacturing reporting a five- month high.
The upturn in Chinese manufacturing activity kindled expectations that metals would be in greater demand leading to metal stocks gaining in value rather than due to RBI action per se.
Metal counter
Orissa Minerals, Sesa Sterlite, Tata Steel and Jindal Steel and Power hit fresh 52-week highs and they were joined by construction major L&T.
Orissa Minerals gained 7.67 per cent or Rs 338.35 to trade at Rs 4,750, which was a new yearly high. Sesa Sterlite touched a new yearly high of Rs 297.80 before marginally easing to Rs 295.80, a gain of Rs 15.80.
Tata Steel touched a new 52-week high of Rs 512.25 but dropped to Rs 511.75, a gain of Rs 18.85. Grasim was another stock to reach a new high of Rs ,3315 and the stock was holding on to its gains at Rs 3,305.10, up by Rs 144.65. Jindal Steel jumped to a high of Rs 325.95 but was down to Rs 320, still a gain of Rs 8.05.
L&T continued its dream run, reaching a new 52-week high of Rs 1,674.50 but slipped to Rs 1,661.60.
Cement stocks
Cement stocks also witnessed positive traction with Ambuja Cements, ACC, UltraTech all gaining.
Ambuja Cements was up by Rs 9.45 to Rs 232.30, ACC was up by Rs 38.30 to Rs 1,420.70 and UltraTech Cement was trading at Rs 2,503, a gain of Rs 52.70.
Other gainers
SBI jumped by Rs 35.30 to Rs 2,680, Axis Bank gained Rs 21.15 to Rs 1,922 and PNB was trading at Rs 984.95, a gain of Rs 6.70.
The major losers were HCL Tech which was down by Rs 35.80 to Rs 1,347, Dr.Reddy’s which shed Rs 45.95 to Rs 2.368, HUL which lost Rs 4.50 to trade at Rs 596.50 and IndusInd Bank that lost Rs 6.05 to Rs 546.35.
IIFL ups Tata Steel target price
In a research report, IIFL said it had consistently upped its target price for Tata Steel whose earnings in the next two years would get a boost by a revival in its European operation and volume growth in FY'16 from its new Kalinganagar facility.
IIFL said it was bullish on Tata Steel and advised investors "to hold for an extended price target of Rs 570''.