Financial Daily from THE HINDU group of publications
Saturday, Oct 09, 2004
Markets - Commentary
Columns - Sensor
Action in mid-cap stocks continues
IT was a lacklustre day at the markets though activity in mid cap space continued.
Automobile stocks languished while select pharma stocks took a breather after a hectic run-up, especially in mid cap pharma companies.
Rising crude oil prices subdued the action in the automobile sector. Soaring metal and commodity prices, however, continue to support buying activity in commodity stocks.
The effect of a strong close in the previous trading session spilled over to the early hours of the trading session. The interest tapered off later in the day.
The Sensex just inched up to 5,776.85 points oscillating in a band of 48.4 points. The Nifty gained 4.5 points to close at 1,820.20 points. The CNX IT index emerged as the top gainer, gaining 0.80 per cent during the day.
In the sugar sector, the action shifted from stocks such as Balrampur Chini to the next in line such as Andhra Sugars. Neyveli Lignite too has been inching up slowly but steadily as valuations are lower compared to its peers.
The overwhelming response to NTPC's public offering too triggered interest in the stock. Few such as Praj Industries and Opto Circuits have been on a relentless upward movement. The shares of Praj Industries were lapped up by SBI Mutual Fund for its various funds. Value buying was seen in stocks such as Gujarat NRE Coke and HEG. Nav Bharat Ferro Alloys, which was among the top gainers a few days ago, witnessed some profit booking.
In the mid-cap pharma space, select stocks such as Orchid, Wyeth, Nicolas Piramal, Glaxo Smithkline Pharma and Aurobindo Pharma showed a brisk move.
On the other hand, Shasun Chemicals, Vimta Labs, Lupin Chemicals, Aventis Pharma and Glenmark Pharma took a breather.
Bank stocks too weakened after showing some momentum over the past one week.
UTI Bank, SBI and Bank of India bucked the trend. UTI Bank showed a sharp move of 11 per cent to close at 157.
Auto stocks such as Bajaj Auto, Tata Motors, M&M, Swaraj Mazda and Maruti ruled weak while HDFC, Grasim and BHEL moved forward among index stocks. The stocks of aluminium, steel and copper manufacturing companies were in demand due to soaring metal prices. Volumes too were strong in stocks such as SAIL, Tata Steel, Sunflag Industries, Jindal Vijayanagar, Essar Steel, Jindal Stainless and Ispat Industries.
Hindalco and Sterlite too ruled firm.Shipping stocks such as SCI, Essar Shipping, Mercator Lines and GE Shipping were on fire as freight rates rule firm.
Some of the prominent gainers among mid and small cap stocks include Ester Industries, Excel Industries, Saregama India, Sono Koyo Steering and Surya Roshni.
Stocks from the capital goods sector such as LMW, Kirloskar Brothers, Aban Loyd Chiles, Praj Industries, Greaves Cotton and Texmaco showed upward movement. Kirloskar Brothers bagged an order worth Rs 44 crore for manufacturing and supply of three primary sodium pumps.
Creative Eye and NEPC gained close to 20 per cent.
NEPC has bagged orders worth Rs 125 crore for the execution of wind power installations.
Order executions for the first half of the current fiscal crossed Rs 125 crore, and the second half is likely to witness completion of Rs 200 crore.
Over 3.85 lakh NEPC shares were traded on the BSE on Friday.
IT & T was up 16 per cent to Rs 9.50 after the company decided to hike the limit of investments from FIIs and NRIs.
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