The Hindu Business Line : Sensex touches 12K-mark since May 18 drop

The Sensex hit the much-awaited 12,000 mark for the first time since May 18 but eased off later, to close with an intra-day gain of 80 points. The Asian and US markets also closed in the green after an unexpected drop in US crude inventories, which helped oil prices to rebound from five-month lows. Market sentiment also got a boost on hopes that the interest rates will not rise any time soon.

Banks and metals prominently led the day's rally and their respective BSE indices posted a gain of 1.59 per cent and 1.04 per cent gains. The overall market sentiment remained neutral; this was reflected in the advance decline ratio of approximately 1:1.

Buzzing stocks

Indiabulls surged 8.04 per cent to close at Rs 373.70. The stock plunged on Wednesday after the company Director lay to rest talks regarding the brokerage business being up for sale, following a 20 per cent surge on Tuesday. A unit of Merrill Lynch bought 1.6 per cent stake in Indiabulls on Tuesday.

G E Shipping gained 5.07 per cent after its subsidiary Greatship bought a platform support vessel. The vessel is expected to join the company's fleet in the second quarter of FY 2007-08.Unitech posted a gain of 5 per cent on sustained buying interest.

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Some of the index heavyweights to gain were Grasim Industries, Bajaj Auto, Hindustan Lever and Dr Reddy's Lab. The mid-cap counters to clock gains were Birla Corporation, Mercator Lines, Adlabs Films and Noida Toll Bridge. ITI, Nocil and GIC Housing Finance were among the small caps that gained on higher volumes.

Sector Focus

The banks continued their winning streak for the third consecutive day. Indian Overseas Bank and Allahabad Bank closed with a gain of over 4 per cent for the day. ICICI Bank surged 3 per cent on renewed buying. Karur Vysya Bank rose 6 per cent; the bank has filed a draft letter with SEBI for its rights issue. It proposes to issue around 1.79 crore-equity shares of Rs 10 each, for cash at a premium of Rs 60 per share, aggregating Rs 125.99 crore on a right basis for every two-equity share held.

Cement shares rallied on expectations of a pick-up in demand post monsoon. Birla Corporation posted a gain of 11 per cent; Mangalam Cements gained 6 per cent; Prism Cements gained 5 per cent. The other stocks to gain were Dalmia Cements, Gujarat Ambuja, Madras Cements, JK Cements and India Cements.

The metal stocks regained their lost lustre and posted gains. Scrips to surge in this space were Jindal Steel & Power, Jindal Stainless and SAIL; other counters closed with slight gains for the day.

Stock-specific action

Geodesic Information System gained 1.33 per cent after it launched Mundu Radio, a new radio product. The beta version of the product will be available for free download at the Mundu Radio Web Site.

Flawless Diamonds closed with a gain of 3.70 per cent on receiving orders worth Rs 14.93 crore from Anki Impex, Hong Kong, for a range of `Aum Classic' and `Aum Exclusive' range of platinum, diamond and gold jewellery.

Gainers and Losers

Among other counters, Shopper's Stop, Essel Propack, Escorts, Subros and HMT moved northwards. Rajesh Exports, PTC India, Tractors India, IDBI and Megasoft recorded loss for the day.