Date:21/06/2005 URL: http://www.thehindubusinessline.com/2005/06/21/stories/2005062102431300.htm

Back Reliance Energy steals the limelight; bank stocks weak

Vidya Bala

IT was a day of records in the market, with the Sensex closing at an all time high of 6984.5, up by 78 points. The previous high (closing) being 6915.5 on March 8.

The market responded positively to the settlement of ownership feud in the Reliance group. The day started on a firm note with the Sensex hitting an intra-day high of 7001.5. The BSE Mid-cap, Small-cap and Bankex however, suffered losses and ended on a weak note. The S&P CNX Nifty closed at 2145.9, up 22.5 points.

Click here for table

Reliance Energy emerged as the biggest gainer in the Sensex portfolio and closed at Rs 658.3, surging by 11.3 per cent. It was followed by Reliance with a gain of 5 per cent, closing at Rs 630.4. Among the midcap stocks Reliance Capital surged by 34.8 per cent to close at Rs 294.2.

Other gainers in the BSE 30(Sensex) basket include Hindalco, Infosys, Satyam and Ranbaxy. Tata Motors, BHEL, SBI and Larsen & Toubro ended in the loser's list.

Oil and gas stocks reacted cautiously to the hike in petrol and diesel prices announced by the Government. BPCL, Chennai Petroleum and ONGC surged by an average of less than one per cent whereas IOC, HPCL and BOC India ended in the red. ONGC announced an increase of 91 per cent in its fourth quarter ended March 2005 profits.

The auto sector was in the limelight on account of smart performance by Swaraj Engines. The company's stock surged by 10 per cent after the company announced a bonus issue and dividend of 225 per cent. Shanti Gears and Mahindra & Mahindra also made respectable gains while Rane Engines and Eicher stayed out of rally.

Banking stocks bore the brunt of bearish forces with the BSE Bankex declining by 1.6 per cent. Announcement of possible merger of Centurion Bank and Bank of Punjab created strong buying interest in the stocks. Bank of India, Union Bank, ICICI Bank and Punjab National Bank recorded profit-taking.

There was broad based rally in the metal sector. Vesuvius India, Sesa Goa, Hindalco and Kalyani Steel weathered challenges while Monnet Ispat, Lloyd Steel and Bhushan Steel fell back on negative grounds.

Among the pharma and chemical stocks, Gufic Biosciences, Suven Life, and Novartis ended in the green while Matrix Lab ended on a weak note. The company had earlier announced its plan to acquire stake in Docpharma of Belgium. Elder Pharma, Nicholas Piramal and Morepen Lab were also seen in the loser's list.

The FMCG stocks put up a lacklustre performance as Tata Coffee, Eveready and Shaw Wallace ended in the red. Wimco, Godrej Consumer Products and Henkel Spic managed to close with respectable gains.

Capital goods sector was mixed. Usha Martin, Graphite India and BEML managed to close in the green while Praj Industries, Gammon India and Alstom succumbed to selling pressures.

Tech stocks mostly stayed in the negative territory with the stocks of TV Today, NDTV, Deccan Chronicle and Shyam Telecom ending on a weak note.

Corporate Actions

The shares of Gujarat State Fertilizers and Chemicals and TTK Prestige surged by 2.4 per cent and 4.1 per cent respectively, after the companies announced favourable results for the year ended March 2005.

Tea plantation stock Assam Company surged by 10 per cent to close at Rs.171.4 after the company's plan to separate its tea operations and the new oil and natural gas business.

Mahavir Spinning Mills surged by one per cent after its fourth quarter ended March 2005 profits almost doubled.

Prominent gainers among the Nifty constituents were IPCL, i-flex Solutions, Patni Computer and Wockhardt. Shipping Corporation, Colgate Palmolive, GE Shipping and IFCI were notable losers.