Back All-round buying ensures widespread gains
Alagappan Arunachalam
SOFTENING of crude oil prices and a healthy 7.1 per cent GDP growth in the first quarter created renewed interest amongst the bulls, who browbeat the bears hands down.
Almost all indices on the BSE recorded sharp gains in excess of 3 per cent except for auto and banking oriented indices, which registered gains of 2.6 and 1.6 per cent respectively.
All round buying support and wide spread gains reflected the bullish phase that the market has once gain stepped into.
The BSE recorded an advances-declines ratio at 3:1; the ratio was far superior among the frontline stocks. All stocks on both bellwether indices recorded gains.
The BSE Sensex opened on a strong note about 60 points higher than Friday's close. The index maintaining the opening gains moved on an upward trajectory through out the day to touch an intra-day high of 8280 points. The Sensex closed with a gain of 256.3 points at 8478.9.
The S&P CNX Nifty moved on similar lines. A steep climb in the morning session was followed by flat session for about an hour in the afternoon. Resuming its pace on a renewed vigour, it marched its way upwards to close with a 3.2 per cent gain at 2557.4 points.
The small-cap index on the BSE yet again outperformed the Sensex, registering a 4.7 per cent gain. A broad bull run on the index was evident with 16 stocks gaining for every stock that fell on the index. A similar rally was also evident on the mid-cap index as 15 gained for every stock that registered declines; the index registered a gain of 3.5 per cent.
Major gainers among the technology stocks were UTV Software, Shyam Telecom, Opto Circuits, Hexaware, Himachal Futuristic, Television Eighteen, Navneet Publications and Avavya Global all of which gained more than 5 per cent.
Prominent gainers in the metal industry were PSL, Southern Iron, National Steel Agro, Jindal Stainless, Man Industries, Texmaco, Monnet Ispat, Madras Aluminium, Mukand, Indian Seamless and Vesuvius all of which closed with gains of more than 6 per cent.
Major gainers in the FMCG space were Eveready Industries, GTC Industries, Shaw Wallace, Bata, McDowell, Jayshree Tea and Warren Tea.
Jet Airways a new entrant to the Nifty registered a gain of 4.4 per cent on the BSE.
Stock specific action
Announcements by Matrix Labs that it is to buy a 60 per cent stake in Mchem Pharma group of China with a view to broaden its supply of feedstock for making drugs used in the treatment of AIDS helped the stock close with a gain of 3 per cent. Trading activity on the counter was low, with volumes falling by about 60 per cent. It plans to close the deal by December.
Pantaloon Retail put on a sharp gain of 8.3 per cent after it reported a two-fold rise in earnings and a 65 per cent rise in revenues for the first quarter.
Gammon gained 2.4 per cent consequent to an announcement that it plans to raise $100 million (about Rs 440 crore) by offering GDRs or FCCBs.
Hindustan Construction gained 5.2 per cent after announcements that it plans a stock split which is to be considered at its board meeting on September 29.
Information that Welspun Gujarat plans to raise $100 million (about 440 crore) from overseas investors created heightened trading activity on its counter. Volumes were up two-fold on the counter. The stock closed higher by 12.4 per cent at Rs 85.95.
Satyam, which announced that it hag bagged an order from the World Health Organisation gained 4.3 per cent, volumes were also up on its counter by about 1.8 lakh shares.
Mawana Sugars gained 4.8 per cent on information that it plans to raise $100 (about Rs 440 crore) to fund its expansion.
Significant gainers on the Nifty were Dabur, M&M, IPCL and Gujarat Ambuja Cement.
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