Merger news triggers rally in bank stocks

K.S. Badri Narayanan

Bank Stocks: The announcement of merger deal between UTI Bank and Global Trust Bank seemed to have lifted market interest for other private banks as well.

GTB finished the week at Rs 98.40 (Rs 90.70) and UTI Bank at Rs 53.80 (Rs 47.85). Other private banks -- IDBI Bank, Vysya Bank, Bank of Punjab, Federal Bank and Centurion Bank -- also gained modestly.

State Bank of India: The stock finished on firm note at Rs 233.40 (Rs 219.75). The overwhelming response for its VRS from its employees could have been behind its rally. (About 22,000 employees have evinced interest for VRS).

Titan Industries: The indication of its jewellery business, Tanishq, may register profits in the current fiscal fuelled a rally. It ended at Rs 74.65 (Rs 68.85).

Polaris Software: The stock finished weak at Rs 481.30 (Rs 502.65). The deferment of final decision on the proposed ADR might have affected the stock.

NIIT: More expectation for the 3rd quarter performance seemed to have affected the stock as it ended at Rs 1561 (Rs 1759.45) even though NIIT posted a 60-per cent rise in its net profit.

Cement stocks: The strong 3rd quarter financial performance announced by major players helped the stocks end firm. Stocks, such as ACC, Grasim Industries, Gujarat Ambuja Cement, Madras Cement, India Cements and Panaym Cement, have posted from 4 to 10 per cent growth.

Aptech: The announcement of 37.5 per cent equity investment ($3.3 million) in Mentorix Technologies, a e-learning company, has not influenced the market interest. Aptech ended flat at Rs 401.20 (Rs 402.60) after opening the week on firm note at Rs 426.85.

Dr. Reddy's Laboratories: The collapse of the agreement with Schein Pharma Inc, which may adversely impact the planned launch of DRL's generic products in the US, appeared to have affected the stock. It ended on weak note at Rs 1304.65 (Rs 1352.45).

Bajaj Auto: The announcement that it plans to enter the insurance business and is negotiating with German-based Allianz AG could have propelled the stock. It also launched its cruiser bike `Eliminator'.

BAL ended at Rs 291.20 (Rs 268.10), after hitting a high of Rs 302.10 during the week.

Hindalco Industries: The company has announced that it is interested to pick up 51 per cent stake in the PSU, Bharat Aluminium company. It also registered a 11 per cent rise in its net profit for the third quarter. Despite these developments, the stock ended weak at Rs 748.75 (Rs 797.10).

Jaiprakash Industries: The stock finished on firm note at Rs 67.85 (Rs 47.60). Expectation that it may sell its cement division has fuelled a strong rally in the stock.

Ramco Systems: Despite a strategic tie-up with SEEC Inc as its supplier of tools and technology for transforming and integrating legacy computer systems throughout the world, the stock ended on weak note at Rs 726.70 (Rs 800.05).

Raymond: The smart turnaround in its 3rd quarter performance helped the stock end higher at Rs 129 (Rs 120.90).