The Hindu Business Line : Sensex crosses 5000 as bull run continues

Sustained buying in index as well as a slew of mid-cap and small-cap stocks fuelled the market. Strong action was witnessed in entertainment and telecom cable stocks.

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Most entertainment companies such as Creative Eye, Tips Industries, Saregama Industries, ETC Networks, Pritish Nandy Communications, Jain Studio's, Crest Communications, Shri Adhikari Brothers, Cinevistaas and the recently listed BAG Films shot up almost touching the upper circuit filter during the day.

Telecom cables such as Aksh Optifibre, Finolex Cables, Birla Ericson and Vindhya Telelink too spurted with a rise in traded volumes.

Among the Sensex constituents, Reliance, Larsen & Toubro, Hindalco, Bajaj Auto, MTNL and Tata Steel were the major gainers.

Tata Steel raced ahead on reports that another round of steel price increase in on the anvil. Though Tata Steel and SAIL have denied a price increase at least in December, market expectations of a price increase triggered interest in Tata Steel. SAIL remained stable at Rs 42.05.

The stock of engineering and construction major, Larsen & Toubro spiked by Rs 14 to Rs 402 after it sent out signals of strong growth in its engineering and construction division in the next few quarters. It has suggested that the EPC division alone would be able to generate revenues equivalent to the combined entity. The cement division would be demerged during the year.

KEC International, a power transmission equipment supplier, was another company whose stock appreciated substantially. The company announced that it has orders worth Rs 1,690 crore as of October. It also announced that it has resumed work on a suspended project in Iraq, which would boost its profits for the current financial year.

The stock price of BSES rose as much as 2.3 per cent on the back of news that it plans to spend Rs 420 crore on distribution and generation infrastructure in the current financial year. The stock closed at Rs 456. Traded volumes in the counter rose substantially.

Among the mid-cap stocks, a few counters that attracted interest backed by a substantial jump in traded volumes were Saint Gobain, Saw Pipes, Seshasayee Paper, Rain Calcining, Rashtriya Chemicals, Ray-Ban Sunglasses, Hindustan Motors, Varun Shipping, Timex Watches and Man Industries.

The auto ancillary story does seem to have steam as a number of auto stocks continue to move upward despite the substantial increase in their share prices in the last few months.

A few such stocks that rose were Rane Brake, Rane Madras, Rane Engines, Sundaram Clayton, CG Igarshi Motors, Clutch Auto, Bharat Gears, Bharat Forge, Jay Bharat Maruthi, Subros and Sona Koyo Steering.

Automotive Axles stock edged up 2.9 per cent to Rs 249 after it announced an interim dividend of Rs 4.70 per share.

Rajesh Exports, a company engaged in the jewellery manufacture business, announced that it has received an export order worth Rs 226 crore after executing a large order for the same client. The stock rose 1.96 per cent to Rs 112. Traded volumes in the counter rose substantially after the announcement.

i-flex Solutions rose to Rs 802 after Morgan Stanley Capital International added the company to its standard indexes of global stocks. i-flex was among the six stocks worldwide to be included.

Jindal Polyester rose by Rs 4.65 to Rs 358.15 after the company bought out a European company in an all cash deal.

Priyadarshani Cements attracted buying interest on the back of newspaper reports that the company intends to restart two units closed by it a few months ago.

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