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Saturday, May 27, 2006

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FMCG, consumer durable indices gain

Alagappan Arunachalam

Trading highlights
Capital goods, metals and consumer durables record significant gains
Advances outnumber declines by 3 times
Buying interest in the plantations sector

With the expiry of the May month derivatives the markets appeared to have gained confidence. The advances-declines ratio reflected the reversal in sentiment. All indices on the BSE closed in the green reflecting the positive sentiment that prevailed in the markets. Midcap and smallcap indices, which were bruised badly in the early part of the week, registered significant gains.

Buzzing stocks

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Markets appeared to have caught a fancy for consumer-oriented stocks. The FMCG and consumer durables indices on the BSE gained about two per cent. Stocks such as Dabur India, Classic Diamonds and Titan Industries recoded a surge in volumes.

Sector watch

The metals sector featured prominently in the shopping list of market participants as 12 constituents of the BSE-Metals index advanced. Gujarat NRE Coke gained about 15 per cent on reports that the company plans to raise coke prices. A five-fold jump in volumes was recorded on its counter. Prominent gainers in the steel space included Mahindra Ugine, JSW Steel, Kalyani Steel and SAIL. Non-ferrous stocks such as Hindustan Zinc, National Aluminium and India Foils registered sharp gains.

Banking stocks also shared the limelight on Friday with many of them gaining by more than three per cent. Frontline stocks, however, were sidelined in the rally. Vijaya Bank featured among the major gainers, the stock advanced by about 15 per cent on strong volumes. Other prominent gainers in the public sector list included Allahabad Bank, Bank of Maharashtra, UCO Bank, Canara Bank and Indian Overseas Bank. Punjab National Bank, however, bucked the positive trend. Major gainers in the private sector included J&K Bank, Bank of Rajasthan, Centurion Bank of Punjab and IndusInd Bank.

On Friday a green trend swept the tea industry with frontline stocks in this sector recovering a large part of their declines. Prominent gainers in this sector included Assam Company, Dhunseri, Harrisons Malayalam, Williamson Tea and McLeod Russel. Goodricke figured at the top of the list by registering an eight per cent gain. Tata Coffee, which also has interests in the tea business, also gained three per cent. Bombay Burmah, which appreciated considerably in the recent weeks, did not participate in the rally.

A mixed sentiment prevailed in the cigarettes industry. GTC Industries, which lost considerable value in the past ten trading sessions, failed to evoke significant interest among market participants. Godfrey Phillips closed flat while VST Industries declining by two per cent. ITC which beat market estimates gained marginally by about 1.5 per cent.

A mixed sentiment also prevailed in the caustic soda industry. While many small cap stocks registered gains, Gujarat Alkalies remained flat. Prominent gainers in this sector included stocks such as Kanoria Chemicals, Punjab Alkalies, Bihar Caustic and Siel. Buying interest could be gauged on the counters of soda ash manufacturers. Tata Chemicals and GHCL advanced by two per cent.

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