Financial Daily from THE HINDU group of publications
Tuesday, Mar 21, 2006
Markets - Commentary
Columns - Sensor
Markets radiate optimism; metal stocks shine
Market breadth positive
Construction & Infrastructure stocks shine, particularly the new listings
Firm LME prices push up metal stocks
Mid-cap stocks outshine pivotals
Rupee convertibility move pushes up tech stocks
Reversing the action witnessed on Friday, markets opened the week with a bang and exuded strong optimism. Firmness in global markets coupled with fresh buying in domestic market helped the markets gather momentum.
The breadth of the market remained largely positive; 20 out of the 30 stocks constituting the BSE 30 index advanced in value.
Stocks from the construction and infrastructure basket continued to sustain investor fancy. A few of those, which tapped the markets of late, hogged the limelight. Pratibha Industries surged by about 20 per cent. The counter was buzzing with activity as over 96 lakh shares changed hands. PBA Infrastructure, Sadbhav Engineering, Indo Tech Transformers and B.L. Kashyap were among the others, which also rallied on the back of huge volumes.
Metals stocks also had a fine outing. Thanks to the firm prices on LME. Sesa Goa was up by 6.9 per cent to finish at Rs 1241.7. Indications that the ongoing talks on iron ore price negotiations might end in a reasonable price hike may have contributed to the strong bullish sentiment across the counter. SAIL, Sterlite Industries, Hindustan Zinc, Hindalco, Nalco, JSW Steel and Navabharat Ferro Alloys also ended on a firm note.
The gains in the mid-cap space far outpaced their counterparts in the large-cap category. Prominent gainers included India Infoline, Amtek India, Kirloskar Oil Engines, Indiabulls, FAG Bearings and Television Eighteen, among others.
Reliance Natural Resources has since its listing on March 1, witnessed huge market interest. The volumes continued to perk up as over 237 lakh shares changed hands on Monday's trading. The stock closed with a gain of 1.3 per cent at Rs 39. Reliance Capital Ventures which was another buzzing counter, however, closed marginally lower.
Media steals the show
Zee Telefilms was up by about 6.2 per cent. The stock has gained about 30 per cent since it announced plans to raise advertisement rates for its channels last Thursday. The volumes reported were also high at about 106 lakh shares.
Media Video also put up a smart show. The stock made spectacular gains of 8.3 per cent. Earlier at a board meeting, the company announced that it has decided to take over Smart Buildwell, a company engaged in the business of Real Estate Development in an all-cash deal. In addition, the company has enhanced the investment limit by FIIs to 24 per cent.
IT stocks in demand
Tech stocks were in demand after Finance Minister said that RBI would announce steps aimed at allowing the rupee to become fully convertible against other currencies in the next few days. Wipro, Infosys, TCS and Satyam gained by about 3-4 per cent on an average. VisualSoft rebounded after recent slide by 6 per cent to Rs 149.
In the broad market, Balrampur Chini, Bombay Dyeing, Escorts, Matrix Lab and Pantaloon Retail were notable gainers. Ajanata Pharma, Emco, GE Shipping, Monsanto, Sundaram Fasteners and UTI Bank figured in the losers' pack, among others.
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