The Hindu Business Line : Engg stocks in focus

After a sharp rally, pharma stocks showed some weakness last week. Both, first-rung and second-rung stocks, slid through the week. Dr. Reddy's, Ranbaxy, Shasun, Glenmark Pharma, Divi's Labs and Neuland Labs still closed higher as compared with two weeks ago. On the other hand Orchid Chemicals, IPCA lost most of the gains made in the rally.

Profit booking in small caps

The rally in select small-cap stocks such as Satnam Overseas, Emami, Flex Industries, Man Industries, Madhucon Projects, Aban Loyd, Bongaigaon Refineries and National Fertiliser petered out on profit booking. These stocks had risen sharply in a very short span of time and over the last week lost most of the gains made. Man Industries dipped 27 per cent to Rs 58.

Engineering: Value play

Elgi equipments, LMW, Flex Industries, Kirloskar Oil Engines (KOEL) and Texmaco raced ahead despite the not so enthusiastic sentiment in the market. Strong performance, revival in the manufacturing sector and low valuations has been driving stocks such as Elgi and KOEL. LMW, once the darling of the market, is again looking up after a prolonged hibernation.

Sugar stocks sweeten

Sugar stocks such as Dhampur Sugars, Thiru Arooran, Balrampur Chini, Bannari Amman Sugars, Sakthi Sugars attracted attention. These stocks posted impressive returns over the last couple of weeks.

Techies pull down

Sentiment in software stocks turned negative after the not-so-impressive earnings announcements made by Wipro. Satyam, Wipro ended in the negative territory. Infosys too showed some weakness. Mastek took a hard hit. It lost almost one-third of its value to close at Rs 200.

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