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Thursday, Mar 09, 2006


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Profit booking pulls down Sensex

Vidya Bala

Markets witnessed the full force of the bear's rampage on Wednesday with the Sensitive Index losing over two per cent. The broad markets were also engulfed in profit booking. This was reflected in the declining stocks outnumbering the advancing stocks by a ratio of 2.5:1. The pessimism was seen across Asian markets as well as a majority of them closed in the red.

Decline in confidence of FIIs was evident from the net outflows in derivatives market. Overseas investors were net sellers of equity derivatives to the tune of Rs 1,600 crore.

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Stocks in limelight

Recently listed stock, Reliance Natural Resources evinced buying interest throughout the day. The stock rose 20 per cent to Rs 26. 195-lakh shares of the company were traded at the BSE.

Gulf Oil Corporation surged by 19.7 per cent to Rs 878.6.The stock has gained close to 30 per cent since March 1.

Grindwell Norton added 16 per cent to close at Rs 614. More than two lakh shares of the company were traded at the Mumbai stock exchange.

Sector focus

The capital goods sector continued to power ahead and made significant gains in a market that witnessed all-round selling. In the large-cap space ABB and Siemens continued their northward journey. Crompton Greaves, Emco, Areva T&D and Numeric Power Systems were key gainers in the power equipment space. Power stocks such as NEPC, Power Trading Corporation and CESC also closed in the green. The dream run of the likes of KEC Infrastructure, Havells India and Kalpataru Power Transmissions, however, came to a halt as the stocks succumbed to challenges from the bear.

The Supreme Court's verdict in favour of property developers in Mumbai continued to shed positive light on the real estate stocks. Bombay Dyeing and Ansal Housing and Construction marched ahead and closed with gains of four and five per cent respectively.

Metal stocks lost sheen and came under selling pressure. JSW Steel, Jindal Stainless, Hindalco and Hindustan Zinc witnessed profit booking throughout the day.

FMCG stocks showed signs of slowing down. Apart from declines witnessed by heavy weights Hindustan Lever and ITC, stocks such as McDowell, Shaw Wallace and Britannia Industries also ended in the red.

Stock-specific action

Shriram Transport Finance Company approved the merger of Shriram Overseas Finance with itself. The former will give three shares of the company for every five shares held by the latter. Shriram Overseas Finance rose 10 per cent to Rs 68.3 while Shriram Transport Finance gained 3.6 per cent to Rs 121.5.

MICO gained 2.6 per cent to Rs 3,266. The company's fourth quarter profits rose 3 per cent and revenues surged by 39 per cent.

Temasek Holdings of Singapore bought a 9.9 per cent stake in Tata Teleservices. The stock declined by 2.3 per cent to Rs 24.7.

UTI Bank, Bharat Electronics, LG Balakrishnan & Bros, The Ruby Mills and Greaves Cotton were some of the stocks in the Nifty constituency that closed with significant gains. Tata Steel, VSNL, Lupin and Hindustan Motors reflected general market sentiments and ended as conspicuous losers.

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