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The capital goods index emerged as the biggest gainer among the BSE indices, up by nearly 200 points to end the day at 9489, prompting many investors to believe that the sector is back to happier times.
But a more careful look showed that in reality, the favourable swing was caused by a single stock that has more than 50 per cent weightage in the CG index - Larsen & Toubro - which was aided in a smaller way by the upward movement in the price of BHEL. Together, these two stocks have a weightage of nearly 72 per cent in the CG index of the BSE.
L&T was up by Rs 30.05 to close at Rs 1202.65. But since the stock has a huge weightage of 53.02 per cent in the CG index, the index showed substantial gains of 192.33 points at the close with the CG index at 9489.33. BHEL, which has the second highest weightage of 18.77 per cent in the index, was up by Rs 9.80 to end the day at Rs 276.60.
The other stocks to make reasonable gains were ABB that was up by Rs 13.55 at Rs 719.40 and Alstom Projects which moved up by Rs 14.85 at Rs 385.75.
Among the losers, BEL shed Rs 15.60 at Rs 1503.40, LMW lost Rs 7.75 at Rs 1557.35, Havells ended at Rs 423.70, a loss of Rs 4.60, and Thermax was down by Rs 3.10 at Rs 458.
The index saw nine stocks advancing and seven declining with one remaining unchanged.
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