The Hindu Business Line : FMCG active; splendid show by media stocks

THE markets made a smart recovery on Wednesday breaking their two-day losing streak. The BSE Sensex gained 0.9 per cent or 80.3 points to close at 8895.8 points. The S&P CNX Nifty appreciated 1.12 per cent or 31 points to close at 2,693. Leading the gains were the stocks of ICICI Bank, ONGC, ITC and Reliance, while L&T and BHEL were prominent losers.

In contrast to the previous two days of volatile activity, the Sensex remained in the positive territory throughout the trading session. The market sentiment, however, appeared to be split down to the middle, with only 50 per cent of the stocks advancing.

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Buying was witnessed across market capitalisations, although the gains in mid-caps and small-caps were relatively modest.

FMCG stocks were in the forefront of the market action, with several stocks witnessing sharp spurt in prices. The stock of Nestle was among the strongest movers, gaining a little over five per cent. The company declared a second interim dividend of Rs 18 per share for 2005 on Tuesday, after market hours. The stock of Colgate Palmolive saw an unprecedented spurt of close to five per cent. Dabur too, saw a similar gain. Index heavyweights HLL and ITC gained about one per cent each.

In the consumer durable space, the stock of Whirlpool gained five per cent. Investors appear to be keeping a close watch on Titan, which has been on an explosive move. The stock, which appreciated more than 30 per cent over the past month, put on another two per cent on Wednesday closing at Rs 721. The stock price of Bata, which has more than doubled over the past six months, was another impressive gainer.

Media stocks put up a splendid show on Wednesday. TV Today was the strongest gainer putting on seven per cent, while the stocks of NDTV and Zee gained close to two per cent each. The stock of Adlabs Films jumped six per cent. The stocks of UTV Software, Balaji Telefilms, HT Media and Mid-day Multimedia also gained smartly.

Banking and technology stocks, never out of investors' radar for long, too, participated in the market action. The stock of ICICI Bank, which just completed its seasoned equity offer worth Rs 5,000 crore, appreciated 2.4 per cent to close at Rs 542.75. The bank's American Depository Share has been priced at $26.75, which translates to Rs 618 per share, an almost 15 per cent premium to the current price.

The stock of its toughest competitor HDFC Bank also recorded a similar gain. Kotak Mahindra Bank and Punjab National Bank were the other prominent gainers in the banking space.

The stocks of telecom operators also figured in the gainers list with Tata Teleservices, Bharti, MTNL and VSNL ending the day higher.

In the IT space, the stock of Sasken Communications and Scandent Solutions were significant gainers, appreciating by about 7.4 per cent and 6.5 per cent, respectively.

The stocks of Engineers India, LMW, Alfa Laval and Alstom Projects were the major gainers in the engineering sector.

Textile stocks traded weak with the likes of Rajasthan Spinning, Mahavir Spinning, Zodiac Clothing and Alok Industries ending lower. It was a mixed bag for pharmaceutical stocks. The stocks of Abbott India, GlaxoSmithKline Pharma, Aurobindo Pharma and Orchid Chemicals gained smartly, while that of Aventis Pharma, Pfizer and IPCA Labs ended the day in the red.

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