Back TCS issue response pushes Sensex up
Shanthi Venkataraman
THE markets ended the week on a buoyant note. The strong response to the TCS IPO had tech stocks zooming; good earnings numbers was the other driver behind the market rally. The BSE Sensex gained 50 points to close at 5,170 points; the S&P CNX Nifty ended the day higher by 14 points at 1,632 points.
The Sensex, which opened the day on a strong note at 5,134 points, continued to trade strongly through most of the trading session. Buying interest in index heavyweights such as Reliance, Infosys and ONGC lifted the benchmark index, even as the stocks of heavyweights, ITC and HLL, shed more than one per cent each. The Sensex soared to touch a high of 5,200 points, but subsequently declined on profit booking. Twentysix out of the 30 index constituents advanced, reflective of the bullish sentiment. The Sensex has gained nearly 2 per cent over the past week. Major gainers of the day include Tata Motors, Reliance, Hero Honda, Hindalco and Gujarat Ambuja. Prominent losers were Zee Telefilms, HLL, Dr Reddy's, Ranbaxy and ITC.
Tech stocks continue to shine: The success of the TCS IPO, which was fully subscribed on Friday, the second day of the issue, triggered further buying in stocks belonging to the IT sector. Stocks of the frontline companies - Infosys, Wipro and Satyam gained more than one per cent. Mid-cap stocks such as Patni Computers, HCL Infosys, CMC, Igate Global, to name a few, also surged. The stock of Tata Elxsi appreciated by nearly 4 per cent on the back of good earnings numbers. The stock of Polaris Software gained marginally. The company has declared a dividend of 35 per cent per share.
Auto, Cement stocks in the limelight: Auto stocks figured among the gainers list on Friday. Figuring in the gainers list was Ashok Leyland, which appreciated by nearly 4 per cent. The stocks of Tata Motors, Maruti, M&M and Hero Honda were also among the gainers. Gujarat Ambuja, ACC, Shree Cement and Madras Cements were among the prominent gainers. Hopes of a revival in monsoon may have spurred the buying interest in these stocks.
Pharma stocks, a mixed bag: Frontline pharma companies were on the losing end. The stock of Ranbaxy slumped following the announcement of a fall in its profits for the quarter ending June. The stocks of Dr Reddy's, Sun Pharma and Dishman Pharmaceuticals also declined. Bucking the trend were the mid-cap and small-cap stocks. The stocks of Torrent Pharma, IPCA, Divi's Labs, Lyka Labs and Astrazeneca Pharma were among the gainers.
The stock of Torrent Pharma gained a whopping Rs 50 to close at Rs 431. The company has entered into a licence agreement with Novartis Pharma AG, Switzerland, for global rights to its patented breaker compound. The licence agreement entitles Torrent to receive an upfront payment of $3 million and provides exclusive global right to Novartis for future development and commercialisation of the compound.
Banking stocks slip: Banking stocks, which rallied on Thursday, fell on profit booking on Friday. The stocks of Vijaya Bank, PNB, Oriental Bank of Commerce and State Bank of India were among those that declined. The stock of IDBI Bank, which soared the maximum permissible limit of 20 per cent on Thursday, gained a modest Rs 2 to close at Rs 52.55.
Results effect: The stocks of BHEL, Container Corporation, IOC appreciated on the back of a surge in profits in the April-June quarter.
The stock of i-flex solutions fell by Rs 10 to close at Rs 530. The profits of the company have dipped by about four per cent in the quarter ended June.
Despite declaration of good results, the stocks of ITC and GE Shipping declined by Rs 11 and Rs 3 respectively.
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