The Hindu Business Line : Bank stock in focus

Banks delight: Bank stocks have been the favourite for quite some time. At present, talk about banks returning their capital to the government is driving these stocks up. Private banks such as Federal Bank and Karnataka Bank too sustained their uptrend. Others such as Bank of Baroda, Canara Bank, PNB lost some steam towards the end of the month but still remained at higher levels. However, Corporation Bank slipped up after a rally and closed 3 per cent lower.

Roll for oil stocks: A sharp spurt was evident in oil & refinery stocks too. Bongaigoan Refineries topped the list of gainers in this segment. The stock closed 70 per cent higher and still rules firm. MRPL too witnessed a sudden sharp buying interest. The stock almost doubled in 15 trading sessions. GAIL, ONGC, IBP, IPCL, Indian Oil and Kochi Refineries too participated in the rally. The action in MRPL could be due to the better prospects under the new ONGC management. The new management has chalked out a number of initiatives to increase capacity utilisation, production efficiency and to reduce debt. Kochi Refineries was up on good earnings numbers. The other stocks in the sector too appear upbeat in expectations of a similar trend.

Renewed Interest in PSUs: A part of the oil and bank rally was fuelled by the renewed interest in PSU stocks. Apart from oil and PSU banks, public sector manufacturing companies too moved in the positive direction. Manufacturing PSU's such as BEML, Container Corporation, Engineers India, Dredging Corporation, Bharat Electricals, Shipping Corporation and HMT forged ahead.

On fertile ground: Last fortnight also threw some light on fertilizer stocks such as Rashtriya Chemicals and Fertilisers, Coramandel Fertilisers, Tata Chemicals, Gujarat State Fertilisers, Indo Gulf, Coramandel Fertilisers, Madras Fertilizers, National Fertilisers and Nagarjuna Fertilisers. The interest in RCF and NCF could again be due to divestment of these companies. Divestment of NCF is expected to be completed shortly and that of RCF is expected to go through by October this year. The interest in Tata Chemicals could be on the back of improved prospects for the company after the takeover of Hindustan Lever Chemicals.

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