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Wednesday, Apr 19, 2006


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Tech stocks in limelight; Sensex adds 600 in 2 days

Krishnan Thiagarajan


POINTERS
Advances-declines ratio stands at 1.4:1 in favour of gainers.
Software and auto stocks fuel market rally.
Noida Toll Bridge and Gabriel were the buzzing stocks.

Powered by a strong momentum in technology stocks, the markets rallied for the second consecutive day. The Sensex ended the day with 281-point (or 2.4 per cent) rise, adding almost 600 points in two trading sessions. The strong growth posted by Tata Consultancy Services in the fourth quarter sweetened with a 1:1 bonus announced in the post trading hours on Monday triggered the rally in the markets. And this buoyancy appears to have rubbed-off on the overall market sentiment. The buoyant undertone was evident in the advances to declines ratio of 1.4:1 in favour of gainers, though sharply lower than the ratio on Monday. Relative to the sharp rise in the Sensex and Nifty, the mid-cap and small-cap indices logged lower returns.

SECTOR WATCH

Among the sectoral constituents of the BSE, the two sectors that outperformed the Sensex were software, auto, oil and gas sector. The frontline software pack clearly stole the show, with TCS, Infosys, Wipro and Satyam appreciating by 3-5 per cent during the day's trading. Among the auto pack, the key gainers during the day were Bajaj Auto, Hero Honda, Ashok Leyland and Amtek Auto. Propelling the rise in the oil sector were two key stocks: ONGC and Reliance. Otherwise, the refinery pack led by the heavyweights such as Indian Oil or HPCL remained in the red.

The sectors that under performed were metals, banking and consumer durables. The metals sectoral index cooled off after a robust rally triggered by a runaway trend in global metal prices. Stocks such as National Aluminium, Sterlite Industries and Essar Steel ended in the negative territory.

BUZZING STOCK

Click here for table

Noida Toll Bridge Company was the buzzing stock of the day, with the stock appreciating by 18.3 per cent to Rs 46.90 on surging trading volumes.

The heightened trading interest in the stock has to be seen in the light of the Government of Uttar Pradesh approving the allotment of 36.2 hectares of land for the construction of Mayur Vihar Link project. The project cost is estimated to be Rs 35 crore and is likely to be completed in 9 months.

EVENT SPECIFIC ACTION

*Riding on high trading volumes, the Subhash Projects stock rose 5 per cent to close at Rs 235.55. The trading volumes shot up to 4.02 lakhs from 16439 shares on Monday's trading. The uptrend has to be seen in the context of the company bagging a slew of rural electrification projects by Bangalore Electricity Supply Company for Rs 137 crore

* Media stocks such as NDTV and HT Media were in the limelight, with the stocks clocking 8.6 per cent and 6.3 per cent gain during the day.

* GTL, Bombay Dyeing, Elgi Equipments and Madras Cements were the other stocks which gained on the back of a sharp rise in trading volumes.

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