The Hindu Business Line : Mid-cap pharma stocks gain in weak market

DRIVEN by the selling pressure in key index heavyweights, the benchmark BSE Sensex closed the day on a negative note. The index was down 77.39 points (1.38 per cent).

The 30-stock index opened on a weak note at 5598.14 points, about 19 points lower than Wednesday's closing. Throughout the day's trading, the Sensex remained in the negative ground, before it closed at 5539.48 points, slightly above the day's low of 5530.86 points.

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On the NSE, a slightly broad-based index, the S&P CNX Nifty, fell 1.58 per cent to 1726.15 points. The drop in the mid-cap index CNX Midcap 200, however, was lower at 0.22 per cent. Trading volumes on the NSE was at 35.3 crore shares, as against 33.4 crore shares registered on Wednesday.

On the BSE, most of the indices including the Bankex and the BSE-PSU witnessed decline. Of the 2,185 stocks traded on the BSE, 899 appreciated in value, 1,208 declined and the rest remained unchanged. On the Sensex, barring MTNL, all the stocks registered declines.

Among the Index heavyweights, ICICI Bank fell by 2.3 per cent to Rs 288.35; Infosys Technologies declined by 2.3 per cent to Rs 1,630.05. Reliance Industries and ITC also closed the day on a negative note.

Among the Sensex constituents, other stocks that witnessed sharp decline include HPCL (4.3 per cent), ONGC (3 per cent), Zee Telefilms (2.7 per cent), Satyam Computer (2.4 per cent), Wipro (2 per cent) and State Bank of India (2 per cent).

Several mid-cap and small-cap pharma stocks witnessed gains. Stocks that witnessed sharp appreciation include Li-Taka Pharma (20 per cent), Jagson Pharma (11 per cent), Glenmark Pharma (10 per cent) and Aarti Drugs (9.4 per cent) witnessed firm trend. Other Pharma stocks that registered gains include Nicholas Piramal, Aventis Pharma and Astrazeneca Pharma.

Other stocks that appreciated in value include Blow Plast (7.8 per cent), Mazda (7.2 per cent), Eveready (7.1 per cent) and Birla Ericsson (6.7 per cent).

Bank stocks down

The stocks of several banks declined in value on Thursday. The stocks of Bank of Baroda (7.8 per cent), Vijaya Bank (3.4 per cent), Union Bank (2.3 per cent) and Canara Bank (2.1 per cent) registered declines.

Construction stocks mixed: Construction stocks remained a mixed bag on Thursday. The stocks of IVRCL Infrastructures (3.5 per cent) and Madhucon Projects (1.8 per cent) were among the losers. However, the stocks of JMC Projects (19.9 per cent) and Valecha Engineering (10 per cent) were among the gainers.

Stock and news: The stock of Simplex Concrete Piles has been witnessing a steady upward trend over the past 10 days. This appreciation has to be seen in the light of the company's robust order book position and the Rs 980-crore order it bagged Nagarjuna Power Corporation recently. The stock on Thursday rose five per cent to Rs 142.85.

Hexaware Technologies has bagged a deal from Lufthansa Systems, for providing maintenance services to its check-in, inventory and ticketing applications. The stock rose 0.7 per cent to Rs 480.25.

NDTV has decided to start a separate business news channel. The stock was up 5.3 per cent to Rs 97.3.

Ranbaxy Laboratories has received an approval from the USFDA to make and market Loratadine & Pseudoephedrine Sulfate extended-release tablets 10mg/240 mg. The stock fell 1.4 per cent to Rs 1,107.35.

Orchid Chemicals has announced that its US joint venture, Bexel Pharmaceuticals, has successfully completed the phase two trials of an anti-diabetic molecule. The stock fell 1.6 per cent to Rs 231.65.

CLC Global is to establish additional capacity to make cotton yarn in Maharashtra. The stock fell 2.9 per cent to Rs 16.7.