Financial Daily from THE HINDU group of publications
Wednesday, Jun 01, 2005
Columns - Sensor
ITC, REL drive positive sentiment
THE markets bounced back after Monday's loss and ended in positive territory with the Sensex closing at 6715.1 points, up 0.8 per cent, and S&P CNX Nifty closing at 2087.55, up 0.7 per cent.
The bullish undertone appears to have been driven by the announcements of Dhabol power project revival and Government's disinvestmentin BHEL.
The bourses started on a flat note on Tuesday and later showed renewed buying interest with the Sensex recording an intra day high of 6722.5 and a low of 6647.7. The positive sentiment was further evidenced by an advance decline ratio of 2:1.
Markets witnessed broad-based buying in frontline and mid-cap counters. Auto, bank, metal and power were the major gainers. ITC and Reliance Energy led the list of gainers. While ITC closed at Rs 1,599.6 up 2.69 per cent, Reliance Energy surged by 1.63 per cent. Others in the gainers list of BSE 30 were Satyam, Reliance, Wipro and SBI. Hero Honda, HPCL, Larsen & Toubro and HLL ended in the red.
In the capital goods sector, KEC International, Alstom Projects and Usha Martin saw heightened buying activity while Dredging Corporation and Gammon witnessed selling pressure.
Steel stocks were in the limelight with Sesa Goa stealing the show with an impressive record of quadrupled profits for the quarter ended March 31, 2005, over the corresponding period last year. The stock shot up by 2.7 per cent. Jindal Steel and Hindustan Zinc also made respectable gains. Kalyani Steel
and Uttam Galva however, ended in the negative territory.
The auto sectors witnessed bullish presence with TVS Motors and Mahindra & Mahindra in the forefront. Mid cap player LG Balkrishnan & Bros. surged by 3 per cent after the company's plans to go global.
In the IT sector, mid-cap stock Aptech surged by 6.3 per cent, followed by Aftek Infosys and KPIT Cummins. Infosys surged by one per cent; the company had earlier announced development of software R&D centre for Alstom SA.
Banking stocks rose smartly with the BSE BANKEX up by one per cent. Kotak Mahindra surged by 7.5 per cent after the announcement of recommendation of bonus issue by the company's board. UTI Bank and Canara Bank were other notable gainers.
The FMCG stocks witnessed mixed trend. While Radico Khaitan, Tata Coffee and Godrej Consumer Products made gains ranging from two to three per cent, Shaw Wallace, Mcdowell and Nestle ended in the red.
Tata Power surged by 1.1 per cent after the company declared its results. Its profit for the quarter ended March 31, 2005, stood at Rs 170.5 crore compared to Rs 54.3 crore for the corresponding period in the previous year.
The stocks of BHEL remained flat and closed at Rs 881. It announced a dividend of 80 per cent after the markets closed on Tuesday.
Godrej Industries recorded a fall of 3.9 per cent after its fourth quarter profit dropped by17 percent.
Other gainers in the Nifty were MTNL, Gujarat Ambuja and Bharti Tele. Prominent in the losers list were Hero Honda, Tata Chemicals, GAIL and HLL.
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