Date:07/09/2004 URL: http://www.thehindubusinessline.com/2004/09/07/stories/2004090701801300.htm

Back Tata Motors, Zee Tele see star attraction

Aarati Krishnan

IN keeping with the trend in recent weeks, much of the market action on Monday's trading was outside of the bellwether indices. Both the market indices notched up marginal gains during the day, with the BSE Sensex gaining 28 points to close at 5,246 points and the Nifty putting on 10 points before closing at 1,644 points.

The broad-based indices, both in the BSE and NSE registered higher appreciation. The CNX-500 for instance appreciated by 0.81 per cent while the CNX Midcap 200 added 1.4 per cent in value. The market undertone remained bullish, with advances overwhelming declines both in the A and B1 and B2 groups.

Index movers:Tata Motors and Zee Telefilms were the index movers for the day.

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The Tata Motors stock firmed up by Rs 8.1 to close at Rs 391.75, on reports that the company's truck sales maintained their growth rates of 21 per cent in August.

The stock has been under pressure in recent days on fears that the truckers' strike would hurt its August sales numbers.

Maruti Udyog also closed 1.9 per cent up, in sympathy.

The Zee Telefilms stock reacted positively, closing Rs 2.8 higher at Rs 161.6, to the news that it bagged cricket telecast rights spanning the next four years, for both international and Indian matches played in India. The company made a winning bid of $308 million for the rights.

The Dr Reddy's Labs stock lost a marginal Rs 4.2 to close at Rs 702, after the company announced that it had decided not to pursue litigation with Novartis over the drug — Lamisil.

Indian Hotels and Satyam Computer were among the index gainers.

BHEL was among the index losers, shedding Rs 18.4 to close at Rs 574.4.

Sugar stocks cool off: Sugar stocks took a breather from their steady run up in recent times, as stocks of both frontline and second-line companies in the sector lost value on Monday.

The Balrampur Chini Mills stock fell Rs 29.3 to close at Rs 374.9. The EID Parry stock lost Rs 5.5 to close at Rs 273.2.

Bannari Amman Sugars (down by 4.3 per cent at Rs 343) and Dhampur Sugars (down 9.8 per cent at Rs 46.5) also registered significant loss in values.

In contrast, many stocks in the tea industry gained ground during the day on the expectation that firmer tea prices would bolster realisations.

Tata Tea continued to gain ground on Monday, adding Rs 3.9 to close at Rs 433.9.

Stocks such as Warren Tea, Jayshree Tea and George Williamson also saw positive price action.

Heightened activity: Stocks that registered a sharp surge in their trading volumes were Aksh Optifibre, e-Serve International, Vesuvius, Prima Securities and Monsanto India.

While e-Serve and Monsanto did not register any significant price appreciation, Aksh Optifibre and Prima Securities registered significant gains on Monday.

Other mid-/small-caps that saw significant gains were Century Textiles (up Rs 8.9 at Rs 159.3), Cummins (up Rs 5.75 at Rs 116), iGate Global (up Rs 13.9 at Rs 264.4) and Tata Elxsi (up Rs 7.2 at Rs 149.75).

News-driven: There were relatively a few announcements that drove stock price action. Those that did were:

* Hikal Chemicals' announcement that it was taking over a Danish distribution company Marsing for $6 million catalysed the stock price, with the stock putting on Rs 16.2, to close at Rs 398.7 on the BSE.

* Unichem Lab's alliance with Lannett Company, a US-based company, for exclusive supply of certain generic drugs helped the stock add Rs 9.3 to close at Rs 146.4.

* The MIRC Electronics stock added Rs 135 to close at Rs 22.2 on news that the company has launched a new product line.