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S. Vaidya Nathan

Interestingly, the banking sector, which has witnessed a significant re-rating in 2003, has only two stocks - Centurion Bank and ING Vysya Bank - that are at their yearly highs.

EIGHTY SIX per cent of the 600 relatively more active stocks on the National Stock Exchange (NSE) trade close to their yearly highs. 50 per cent of these stocks trade at prices that are within 10 per cent of the highs. The current prices of the rest are between 75 and 90 per cent of their yearly highs. The following aspects are notable:

* In keeping with the broad-based rally in the stock markets, the list of stocks, which have moved up sharply, straddles a wide range of sectors. Yet another factor is the dominant presence of mid-cap stocks in the list of 50. The only large-cap stocks are Indian Oil Corporation (IOC), Hindalco and Tata Steel.

* A host of mid-cap engineering stocks such as L G Balakrishnan Bros, Kirloskar Oil Engines, Cummins India and Alfa Laval provide a pointer to the fancy that this sector has enjoyed over the past four months (see related story on Page 7 under `In Focus').

* Interestingly, the banking sector, which has witnessed a significant re-rating in 2003, has only two stocks - Centurion Bank and ING Vysya Bank - that are at their yearly highs. The contrast is stark. Centurion Bank has been acquired by the Sabre group, which is trying to restore order into battered finances of the bank and generate value in the process. The stock is up by about 77 per cent in the last three months, driven by expectation of restructuring-led gains. ING Vysya, on the other hand, has moved well past the Rs 400 levels with the global promoter - the ING group of the Netherlands - keen to raise its stake.

* Stocks of companies such as Prism Cement, Rama Newsprint, Indian Rayon and EIH, to name a few, have also marched ahead to their yearly highs, driven by possible restructuring and/or acquisitions.

* The overdrive in the auto sector has lifted stocks such as Sundram Fasteners, Rico Auto, Asahi India Safety Glass, MICO and India Nippon to new highs for the past twelve months. A host of other auto stocks, including commercial vehicles majors such as Tata Motors and Ashok Leyland, are also trading at levels close to their yearly highs.

A list of stocks that are at price levels close to their yearly lows shows the dominant presence of information technology sector stocks. The likes of Nucleus Software, CMC, Polaris Software, Sonata Software and Infotech Enterprises indicate the profile of stocks that have languished, in spite of the bullishness witnessed over the past four months.

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