Financial Daily from THE HINDU group of publications
Tuesday, Jun 17, 2003
Financial Daily from THE HINDU group of publications Tuesday, Jun 17, 2003 |
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Markets
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Commentary Columns - Sensor Domestic pharma, select mid-cap stocks firm B. Krishnakumar
SNAPPING the three-day rally, the benchmark indices ended the Monday's trading on a weak note. The Sensex declined 17.5 points to close at 3336.64 while the Nifty declined by 4.4 points to 1051.8. The weakness in index heavyweights Reliance Industries and Hindustan Lever was instrumental in pulling down the indices. The overall market activity remained lacklustre with the Sensex ruling in a narrow range of about 36 points. But for the nominal gains recorded by a few stocks, the trend by and large was subdued. The likes of Infosys Technologies, HCL Technologies and Digital GlobalSoft were prominent losers from the software sector. Satyam and Wipro managed to eke out marginal gains. In the banking sector, J&K Bank, Oriental Bank and SBI managed to close on a positive note while Corporation Bank, Andhra Bank and Bank of India were key losers. The share price of Indian pharmaceutical companies was one of the key highlights of Monday's trading. The likes of Dr. Reddy's Laboratories, Ranbaxy and Cipla were prominent gainers of day's trading. The share price of Dr. Reddy's Laboratories increased by 3.95 per cent to Rs 998.75. Along with the uptrend in pharma stocks, the rally in the mid-cap stocks was another noticeable development of Monday's trading. Quite a few companies including Escorts, Amara Raja Batteries, Sesa Goa, Orchid Chemicals, Elgi Equipment and Arvind Mills ended the day on a firm note. However, the sharp upward spike in stocks from the telecom cable sector was the striking feature of Monday's trading. Top telecom cable manufacturers such as Finolex Cables, Vindhya Telelinks, Birla Ericsson, Sterlite Optical and Aksh Optifibre managed to record sharp gains . The share price of Finolex Cables shot up by 6.12 per cent to Rs 99.75 while volumes increased to 1.32 lakh shares from 10,554 shares. An unprecedented jump in trading activity was witnessed in stocks such as CG Igarashi Motors, IBP, Polyplex, Elgi Equipment, Monnet Ispat and Emco. The rise in volume was accompanied by a sharp spurt in share price as well. The increase in market activity was much more pronounced in these counters at the NSE. Apart from these stocks, Andhra Sugar, not listed at the BSE, recorded a sharp rise in share price on the back of a surge in trading volumes. The recent bull-run in the IBP counter was extended to Monday's trading as well. The share price of the company shot up by Rs 32.75 or 6.05 per cent to Rs 574.5. Trading volumes almost doubled to 3.71 lakh shares from 1.87 lakh shares recorded on Monday. The share price of Sesa Goa spurted by 11.25 per cent to Rs156.8. Trading volumes vaulted to 3.41 lakh shares from 40,118 shares recorded on Friday. The stock has now recorded a 90 per cent per cent rise since May 1. Stocks from auto-ancillary sector were prominent losers of the day's trading. The likes of Ucal Fuel, Sundram Fasteners and Motherson Sumi were prominent losers from the sector. The share price of carburettor manufacturer Ucal Fuel dropped 11 per cent to Rs 234.35 while trading volumes zipped to 70,320 shares from 24,808 shares recorded on Friday. Apart from the auto ancillary stocks, the likes of Hero Honda, Asian Electronics, India Glycol and Flat Products were other key losers of the day's trading. After a sharp upward spiral in the past couple of weeks, the Asian Electronics stock met with some selling pressure on Monday. The scrip dropped by about 9 per cent to settle at Rs.75.85. It had almost doubled from Rs.42 on June 2 to close at Rs.83.25 on Friday last. The share price of motorcycle producer Hero Honda dropped by 4.5 per cent or Rs 11.25 to close at Rs 240.6. Trading volumes dropped marginally to 1.65 lakh shares from 2.35 lakh shares.
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