From THE HINDU group of publications
Sunday, October 29, 2000


Markets | Previous | Next

Indian pharma stocks recover

A. Srikanth

Except for a sudden spurt in prices on Wednesday, the markets remained subdued during most of the week. The moorat trading on Diwali day was lacklustre with both the Sensex and the BL-250 Composite Index gaining 13.55 points and 8.30 points respectively.

Overall, while the BL-250 Composite Index went up by 6.84 points to close at 1,111.06, the Sensex gained 36.37 to end at 3,729.37.

In contrast to the previous week, both the indices moved in unison.

There was little change in the overall trends compared to the previous week. While pharmaceutical and select information technology stocks continued to gain in strength, most FMCG sectors posted negative returns. However, the composition of the major gainers in the pharmaceutical sector took a full turn.

Compared to the previous week, most of the major gainers were the stocks of Indian pharmaceutical companies. Major gainers during the week include Cipla, Aurobindo Pharma, Ranbaxy, Dr. Reddy's Labs and Lupin Labs. During the previous week, most major gainers were from the pharmaceutical-MNC index. Though stocks such as Sun Pharma, Rhone Poulenc, Hoechst Marion Roussel, Wyeth Lederly, German Remedies, Fulford, Glaxo and E-Merck gained in value, the extent of gains were limited compared to the previous week. The overall trends seemed to confirm the view that the market is turning defensive.

Major gainers among information technology stocks were limited to Digital Equipment, Infosys Technologies, Aptech, Tata Infotech and Wipro. Overall, while the Computer Hardware index gained by 0.94 per cent, the Computer Software index declined by 0.91 per cent.

As has been the case in the previous weeks, the market still nurtures some hope on select old-economy stocks. In Steel-Flat products, the Essar Steel stock witnessed some positive activity in light of the fact that the company turned around during the first half of this fiscal. In Paper & Pulp, all companies, namely ITC Badhrachalam, TNPL and Ballarpur Industries, posted gains during the week.

The Engineering-Engines & Power Plant index went up by 8.85 per cent during the week, as the Cummins stock made a comeback by gaining Rs 29.95 to close at Rs 330. While both Reliance Petroleum and Cochi Refineries were the biggest gainers in Petroleum-Refining, Essel Packaging was the leader in the Packaging index.

Other major gainers among the old-economy stocks include Gujarat Gas, Sterlite Industries, Otis Elevators, Monsanto Chemicals, Swaraj Engines, Grasim, Supreme Industries, Goodlass Nerolac and Sundaram Clayton.

Most FMCG sectors either continued to post losses or remained range-bound during the week. Except for Food & Dairy (because of Nestle), all other sectors such as Personal Products and Consumer Products posted lacklustre performances. Other major losers include Engineering-Compressors & Mining Equipment, Automobiles-CJT, Automobiles (2&3 wheelers), Power, Engineering-Tools and Telecom.

Section  : Markets
Previous : Badla Statistics
Next     : How the broad market indices and
           industry-wise indices moved during the week

Capital Offers | Stocks | Bonds & FDs | Mutual Funds | Industry | Markets | Personal Finance | Opinion | Indicators |

| Index | Site Map | Home

Copyrights © 2000 The Hindu Business Line

Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line