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Tuesday, Jul 09, 2002

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Consumer durables, capital goods shine

Sowmya Krishnan

THE markets appeared to have already discounted the demise of Dhirubhai Ambani, the creator of India's largest private sector company, Reliance Industries. The stock market had taken a knock soon after the hospitalisation of Ambani. Ironically, on Monday, shares of Reliance Industries rebounded and posted decent gains. Shareholders appear to have overcome the uncertainties regarding the company's future and regained confidence in the successors.

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The 30-issue, Bombay Stock Exchange Sensex appreciated 0.81 per cent or 27.05 points to close at 3357.66 points. The broad market trend, indicated by the advance to decline ratio and the new highs to new lows ratio, was strongly in favour of bulls. While 1343 scrips gained, only 422 lost value. The depth of the market too was bullish. Only 17 shares touched new lows as against 607 that touched new highs. The broadbased S&P CNX Nifty ended 0.77 per cent to 8.25 per cent up at 1082.05.

Among the sectoral indices, the BSE-Consumer durables index was a major gainer, with a 3.38-per cent gain to close at 913.35 points. The major gainers of the index were Whirlpool, Videocon, Timex, Amtrex Hitachi and Salora International.

It was closely followed by the BSE-Capital goods sector, which rose 1.86 per cent to close at 961.90 points. Signs of economic revival appear to have fuelled interest in the capital goods sector. Stocks such as Ingersoll Rand, Thermax, Alfa Laval, Atlas Copco and Cummins have been moving upwards slowly and steadily.

The rally was broadly fuelled by a rise in blue chip stocks - Reliance Industries and Reliance Petroleum. The share price of Reliance Industries, the flagship of the Reliance group appreciated 3.08 per cent to Rs 271.40. Reliance Petroleum too ended on a positive note, gaining 3.39 per cent to Rs 24.40.

Among the blue chips, HLL, Satyam and NIIT firmed up while Zee Telefilms and ITC moved southwards.

CG Igarshi Motors witnessed hectic activity as the stock appreciated 15.52 per cent to Rs 64. Traded volumes nearly doubled to 38,000 shares. Automakers and cement manufacturers too were in limelight. The auto stocks such as Bajaj Auto, Hero Honda and Tata Engineering rose in expectation of strong quarterly results. After market hours, Hero Honda announced a 77-per cent rise in net profit, beating analyst forecasts. Cement companies such as ACC, Gujarat Ambuja Cements, L&T and Grasim too saw their share prices firming up.

Bata India rose as much as 12.2 per cent to Rs 50.90 on talk that the company plans to spin-off certain loss-making units. At the end of the day, it settled at Rs 49.45, gaining 9.04 per cent. Volumes surged four times to 6.57 lakh shares.

Tata Chemicals was another noticeable gainer, rising 12.04 per cent to Rs 69.35 amidst huge volumes. Other gainers for the day include Fag Bearings, Tata Telecom, EMCO, Balaji Distilleries and Jindal Iron and Steel.

Shipping Corporation dipped 3.18 per cent to close at Rs 86.90 on volumes of 4.6 lakh shares. Shaw Wallace was another noticeable loser shedding 11.57 per cent to Rs 50.85. Around 1.3 lakh shares exchanged hands.

After a rally, Praj Industries stock appears to be on a downslide. The stock shed 7.39 per cent to Rs 59.50. Around 57,000 shares exchanged hands.

Among the losers appeared stocks such as Eicher Motors, Skansa Cements, Crompton Greaves, Rayban, United Phosphorus and ABB Alstom.

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