The Hindu Business Line : Bulls call the shots to wrap up 2005

TIME again to ring out the old and ring in the new with the bulls nodding in unison, acknowledging the longest annual winning streak of Sensex in more than a decade and gearing up for the next run. The bulls decided to call the shots on the last trading day of the year. The Sensitive Index closed at 9397.9 adding 74.7 points or 0.8 per cent for a record on Friday.

Markets opened on a cautious note but optimism took over soon with buying activity across sectors barring energy and select IT stocks. The Sensex reached an intra-day high of 9427.2. The final hour of trade says some slipping of the gains accumulated but nevertheless closed with a record. In the broad markets the S&P CNX Nifty gained 14.6 points or 0.5 per cent to close at 2836.5.

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The mid and small cap indices gained over one per cent. This was reflected in the positive market breadth with advances outnumbering declines in the ratio of 2.5:1.

Positive macro economic scenario and robust corporate earnings saw the Sensex gain 44 per cent over the year after rising 13 per cent in the previous year. Confidence placed by overseas investors in domestic stocks was reflected in the investment of $10.7 billion in the current year, as opposed to $8.5 billion last year.

In the basket of BSE 30 (Sensex), Dr Reddy's Laboratories notched gains of 3 per cent to Rs.978.5. The company received tentative approval from the Food and Drug Administration to sell its copy of Pfizer's antidepressant drug. The company can, however, begin sales only after the final approval. The bulls also propelled Hindalco, Tata Steel, Grasim and Larsen & Toubro. ONGC and HDFC failed to join the rally and ended with declines.

The BSE Metal index was the biggest gainer for the day. Apart from the frontline stocks, Monnet Ispat surged 11.7 per cent to Rs.196. Jindal Steel, JSW Steel and Jindal Saw were key gainers. Bucking the trend was Sesa Goa and Mahindra Ugine.

Banking stocks had a field day with the banking indices at the NSE and BSE closing with gains of about 2 per cent each. Bank of India, Union Bank of India, ICICI Bank and Karnataka Bank closed in positive territory. Federal Bank, however, declined 1.3 per cent to Rs 182.4. The Reserve Bank of India has barred further foreign investments in the bank after it reached the limit of 24 per cent.

FMCG stocks moved northward. GTC Industries, McDowell, Assam Company and Nirma were some of the small and mid-cap stocks that stole the limelight.

Auto sector picked speed with stock specific events. Mahindra & Mahindra surged 2.2 per cent to Rs.512.05 after reports that the company plans to spend $100 million (Rs 460 crore) to set up an automotive research and development centre next year. MRF rose Rs.17.8 to Rs.2751 after reports of the company's plan to set up a plant in Sri Lanka.

Scooters India, MICO and J K Industries were closed in the green.

Stock specific action

Jain Irrigation Systems plans to raise its FII limit to 60 per cent from 49 per cent at present and also invest Rs 225 crore to expand capacity. The stock gained 3.2 per cent to Rs 208.2.

Aftek Infosys surged 5 per cent to Rs 115.7. The company acquired Germany's Arexera Information Technologies by purchasing additional stake in the company.

Century Enka's board approved the cancellation of shares bought back from Acordis Overseas Investment BV. The shares climbed 5.3 per cent to Rs 229.9.

Tata Chemicals, IFCI, Jaiprakash Associates and Nagreeka Exports were prominent gainers among the Nifty constituents, Bharat Petroleum, HDFC and Ceat were conspicuous losers.