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Suresh Parthasarathy
Trading highlights
Banking stocks were in the limelight.
Metals closed firm due to stability in international prices.
Cement sector too gained on the back of positive trend.
Chennai , June 22
The markets opened strong on Thursday and held on to the gains throughout the session. Taking a cue from the global markets, the BSE Sensex went on to touch the day's high of 10,362.70 points. But, late hour profit booking pushed the index down a bit and the benchmark closed at 10,275.88 points.
The breadth of the markets was positive on the back of buying in most of the frontline stocks. Out of the Sensex's 30 stocks, 26 ended the day in green. Due to the steep correction during last month among the small-cap stocks, value buying in these counters was witnessed for the second consecutive day. The advances-declines ratio on the BSE was 4:1.
Buzzing Stocks
The Cabinet has approved the sale of a 10 per cent stake in the State-run National Aluminum Company Ltd (Nalco) and in Neyveli Lignite Corporation. The Finance Minister, however, said the shares would be sold at an appropriate time. The Nalco stock closed the day with a gain of 6.8 per cent at Rs 239.60. Neyveli Lignite gained Rs 9 to end the day at Rs 66.35. Other prominent stocks that posted gains on Thursday were HDFC, SBI, Grasim Industries and Hindalco.
Sector-focus
Banking stocks were in the limelight on Thursday. Majority of the stocks ended the day in green. In the public sector space, Indian Overseas Bank, Punjab National Bank, Bank of Maharastra and Bank of Baroda were up. Amongprivate sector banks, UTI Bank gained 6.5 per cent. Other gainers were ING Vysya Bank, HDFC Bank and IndusInd Bank, which lost heavily in the recent carnage, gained 4.8 per cent.
Stocks from the capital goods sector were active on the back of brisk buying. Larsen &Toubro lead the pack with a gain of Rs 168 to close the day at Rs 2,196. Other prominent gainers were ABB, Atlas Copco and Thermax. However, the stocks that bucked the trend and closed in the red were Engineers India, Siemens and Voltas.
On the back of stability in international metal prices, stocks from the sector closed firm. Hindalco, Sterlite Industries and SAIL were all up by three to five per cent. Tata Sponge Iron gained Rs 10 to close at Rs 120.
The cement sector too gained on the back of positive market trends. Dalmia Cement, Birla Corporation, Mangalam Cement, India Cements and Chettinad Cements gained between four per cent and five per cent. The lone stock to close in the red was Mysore Cements.
Stocks from the IT sector gained between three and four per cent. The stocks were Satyam Computer Services, Wipro, CMC and HCL Infosys. The one's that closed in the red were HCL Tech, i-flex Solutions and iGate Global Solutions.
Stock-Specific Action
The stock of Dr Reddy's shed Rs 84 and closed at Rs 1,264 on back of the news that the company has launched the generic version of the drug Proscar in the US market on June 20, post the patent expiry.
Hindustan Zinc has announced a reduction in zinc prices by Rs 4,100 per tonne. The stock touched the day's high of Rs 618 before ending the day at Rs 595.
Pidilite Industries announced that Pidilite USA Inc, Delaware, a subsidiary of the company acquired business and assets relating to art materials and car care products from two existing companies having a combined sales turnover of approximately Rs 90 crore. Following this news, the stock gained Rs 4 to close at Rs 92.70.
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