Financial Daily from THE HINDU group of publications
Saturday, Mar 18, 2006
Markets - Commentary
Columns - Sensor
Markets fail to capitalise on early gains
Undertone remains cautious
Nineteen stocks of BSE-Sensex decline
Stocks from the Reliance basket continue to report high volumes
Markets on Friday opened on a strong note but failed to hold on to the gains as profit booking in the last hour of trading dragged them into negative territory. The undertone in the markets remained largely cautious. Frontline counters that evinced strong buying interest on Thursday, lost steam.19 out of the 30 stocks constituting the BSE 30 index shed value.
The stock of Kirloskar Oil Engines hogged the limelight during the day's trade. The stock hit the upper circuit limit with a gain of about nine per cent to Rs 226.4. Mysore Cement and Ahmednagar Forgings were other stocks that hit the upper circuit and recorded huge volumes.
Stocks from the Reliance basket continued to report high volumes. Volumes continued to soar across the counter of Reliance Natural Resources as close to five crore shares changed hands. The stock, however, ended the day marginally lower than its previous close. Reliance Capital Ventures added about 1.5 per cent to its stock price on the back of volumes close to 1.5 crore shares.
While most sectors stayed out of flavour on Friday's trading, stocks from consumer durables and automobile sectors managed to capture investors' interest. Amtek India, Punjab Tractors, Tata Motors and Sundaram Fasteners were among the automobile stocks that appeared in top gear. From the basket of consumer durables, Whirlpool, Goldiam International, Bajaj Electricals and Videocon Industries spurt up on the back of strong buying support.
While a large number of large-cap stocks sported a bearish outlook, few of the mid-cap stocks marched ahead. Prominent gainers in the space included the likes of Zee Telefilms, FAG Bearings, India Infoline, MphasiS, Television Eighteen, GTL Industries, Essel Propack, Thomas Cook and Usha Martin among others.
IT, capital goods, FMCG, metals and banking sector stocks failed to attract market interest and ended on a poor note. Satyam, Infosys, Tata Steel, Tata Coffee, Britannia, KEC International, Havells India, Karnataka Bank and Vijaya Bank suffered losses.
B.L. Kashyap & Sons climbed by 42 per cent to Rs 972.7 in its trading debut against the offer price of Rs 685.
Coromandel Fertilisers rose by 4.4 per cent to Rs 81.3. The local maker of fertilizer and sulfuric acid plans to buy a 50.2 percent stake in FICOM Organics from its owners. It also plans to make an offer to the shareholders of FICOM Organics to buy an additional 24 per cent stake.
Mahindra & Mahindra Financial Services moved up by 17 per cent, to Rs 233 in its first day of trading against the offer price of Rs 200.
Visa Steel made its listing below the offer price of Rs 57. It, however, managed to end with a marginal gain.
Suzlon Energy gained 0.5 per cent. The maker of wind-turbine generators announced that it has signed an agreement to buy Belgium's Eve Holding NV.
In the broad market, Aftek Infosys, Alstom Projects, Balaji Telefilms, Cummins, Pantaloon Retail, Valecha Engineering and Gujarat NRE Coke were notable losers among others. GAIL, Grasim, Hindalco, Timken India and Voltas were few stocks that figured in the gainers' pack.
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